Big Update for UPI Users: India’s digital payments system is growing at a fast pace, and UPI is now a central aspect of daily transactions. For improved safety and a more comfortable experience for users, NPCI has introduced a significant rule change for UPI payments from June 30, 2025. The change is intended to prevent fraud and secure digital payments for all.

What Is Changing from June 30

At present, applications such as Google Pay, PhonePe, Paytm, and BHIM show the name of the receiver based on what the receiver has stored on his/her device. It is quite convenient for the fraudsters to make use of fake or deceptive names for concealing their actual identity. From June 30, the system will prompt the recipient’s registered name with the bank automatically before making the payment transfer.

Where the New Rule Will Apply

This regulation will be introduced in two categories of UPI transactions: person-to-person (P2P) and person-to-merchant (P2M) transfers. Whatever the method of sending money through scanning a QR code, entering a UPI ID, or a mobile number, the sender will get to view the actual registered name of the receiver before the transaction gets confirmed.

Why This Rule Was Needed

With the growing usage of UPI throughout the nation, there have been growing cases of frauds with fake names and QR codes as well. Many fraudsters scam users by displaying known names or modifying the display name in a way that is hard to identify the original name. The new regulation makes it more challenging for fraudsters to conceal their identity, thereby decreasing the possibility of fraud.

How It Benefits Users

One of the greatest user benefits is that users can spot fraud before sending money. By seeing the official name associated with the recipient’s bank account, users can be certain that the money will be sent to the intended person. It will boost people’s trust in digital payments and render transactions safer by minimizing chances of accidental or fake transfers.

What Should Users Do

Before finalizing any UPI transaction, check the name displayed on the screen. If the name seems strange or suspicious, do not go ahead. Do not scan QR codes given by strangers. And also inform about any suspicious transactions to the bank or the support desk of your payment app to remain safe.

Impact on Digital Payments

This update will increase digital transactions’ transparency and reliability. Users will be more secure while transferring money because they know that the name displayed is verified and correct. It also places additional responsibility on users to check information twice, enhancing the overall security of the UPI system.

More Awareness Needed

With the new rule in place, awareness among users will be most important. Most users continue to follow outdated habits of sending money without knowing to saved contacts. Payment applications might have to introduce alerts or brief tutorials to help individuals get used to this new process and prevent possible errors.