Most Secure: NPCI's New UPI Safety Rule

Written By: Mobin

NPCI mandates display of recipient's official bank-registered name during UPI transactions, eliminating errors from saved contact names. Rollout starts June 30, 2025.

Innovation

New rule prevents wrong transfers by showing CBS-recorded beneficiary names before payment confirmation on all UPI apps including PhonePe, GPay and Paytm.

Security

Applies to P2P and merchant transactions. Users will see exact account holder name from bank records before sending money, reducing fraud risks significantly.

Functionality

All UPI platforms must integrate this feature by deadline. Covers 300+ million users making 10+ billion monthly transactions across India's digital payment ecosystem.

Implementation

Eliminates errors from nicknames/saved contacts in phonebooks. Ensures money reaches intended recipient by displaying official bank-registered beneficiary names.

Prevention

For wrong transfers, immediately contact recipient or bank. Escalate to NPCI helpline (1800-120-1740) if unresolved. New rule minimizes such cases proactively.

Recovery

Expected to boost digital payment confidence, reduce fraud complaints by 40%, and strengthen India's position as global UPI innovation leader.

Impact

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