UPI Users Alert! Banks & UPI Apps to Implement New Mobile Number Verification from April 2025

UPI users alert! Banks & UPI apps to implement new mobile number verification rules starting April 1, 2025, in a move that could deactivate millions of UPI IDs linked to inactive mobile numbers. Unified Payments Interface (UPI), a cornerstone of India’s digital payment ecosystem, is undergoing significant changes to enhance security and reduce fraud.

This article provides a comprehensive overview of the new rules, their impact on users, banks, and payment apps like PhonePe and Google Pay, and what you need to do to stay compliant.

Tailored for a global audience, including U.S. readers interested in India’s fintech revolution, this news article is optimized to rank at the top of Google search results for “UPI users alert! Banks & UPI apps to implement new mobile number verification.”

What Are the New UPI Mobile Number Verification Rules?

Starting April 1, 2025, the National Payments Corporation of India (NPCI) and the Reserve Bank of India (RBI) will enforce new regulations requiring banks and UPI apps to verify and deactivate UPI IDs linked to inactive or reassigned mobile numbers. This initiative, part of a broader effort to curb fraud and enhance user experience, targets numbers that have been deactivated for over 90 days or reassigned to new users. The rules aim to ensure that every UPI ID is tied to an active, verified mobile number, reducing the risk of unauthorized transactions and payment failures.

The NPCI has introduced a Mobile Number Revocation List and a Digital Intelligence Platform to identify and manage these numbers. Banks will be responsible for deactivating affected UPI IDs weekly, impacting millions of users who haven’t updated their mobile numbers with their banks or UPI apps.

Timeline of the New UPI Rules

The following table outlines the key milestones related to the new UPI mobile number verification rules:

Date	Event
January 2025	NPCI announces new UPI rules to address fraud and inactive mobile numbers, effective April 1, 2025.
March 2025	Banks and UPI apps (e.g., PhonePe, Google Pay, Paytm) begin notifying users to update mobile numbers.
April 1, 2025	New rules take effect; banks start deactivating UPI IDs linked to numbers in the Mobile Number Revocation List.
April 17, 2025	Reports confirm high compliance from major banks; over 1 million UPI IDs flagged for deactivation.
May 2025	NPCI to review initial impact and refine the Digital Intelligence Platform for ongoing fraud prevention.

Why Are These Changes Happening?

The new UPI rules stem from growing concerns about fraud and security vulnerabilities in India’s digital payment system, which processed 16.99 billion transactions worth ₹23.48 lakh crore (~$280 billion USD) in January 2025 alone. Below are the key reasons driving these changes:

1. Rising UPI Fraud: Fraudulent transactions, often linked to inactive or reassigned mobile numbers, have surged. Scammers exploit UPI IDs tied to numbers no longer in use, intercepting OTPs or redirecting payments to unauthorized accounts.
   • Explanation: When a mobile number is deactivated (e.g., not recharged for 90 days), telecom operators like Bharti Airtel or Jio may reassign it to a new user. If the original UPI ID remains active, payments intended for the original user could go to the new number holder, leading to fraud.
2. Enhancing User Experience: Inactive numbers cause transaction failures, with users reporting issues like payments not reaching the intended recipient. The new rules aim to reduce such errors, ensuring a smoother payment experience.
   • Explanation: A verified mobile number ensures that OTPs and transaction confirmations reach the correct user, minimizing failed payments and improving reliability.
3. Regulatory Push for Security: The RBI and NPCI aim to strengthen UPI’s security framework, aligning with India’s goal of a fraud-free digital economy. The Mobile Number Revocation List will help banks maintain accurate user data.
   • Explanation: By deactivating risky UPI IDs, regulators reduce the attack surface for cybercriminals, protecting users and financial institutions.

Impact on UPI Users, Banks, and Apps

The new mobile number verification rules will affect all UPI stakeholders—users, banks, and payment service providers (PSPs) like PhonePe, Google Pay, and Paytm. Here’s a breakdown of the impact:

1. UPI Users:
   • Risk of Deactivation: If your UPI ID is linked to an inactive or reassigned mobile number, it will be deactivated starting April 1, 2025, preventing you from receiving payments.
   • Action Required: Update your mobile number with your bank and UPI app to avoid disruptions.
   • Example: If you haven’t used a number for over 90 days and it’s been reassigned, payments sent to your UPI ID could go to the new number holder unless updated.
2. Banks:
   • Increased Responsibility: Banks must cross-check UPI IDs against the Mobile Number Revocation List weekly and deactivate non-compliant accounts.
   • Infrastructure Burden: Managing this list requires significant resources, but it will reduce fraud-related disputes and improve data accuracy.
   • Benefit: Fewer courthouse transactions mean less time and cost spent resolving fraud cases.
3. Payment Service Providers (PSPs):
   • Reduced Transaction Failures: Apps like PhonePe and Google Pay will see fewer failed transactions caused by inactive numbers, improving user trust.
   • Compliance Costs: PSPs must integrate with the Digital Intelligence Platform, increasing operational expenses but enhancing security.
   • Market Leaders: PhonePe, with the largest UPI market share (48% in January 2025), followed by Google Pay (38%) and Paytm (~10%), will benefit from a more reliable ecosystem.
4. Businesses:
   • Fewer Payment Failures: Merchants relying on UPI for transactions will experience fewer failed payments, boosting operational efficiency.
   • Enhanced Trust: A secure UPI system encourages businesses to adopt digital payments, driving growth in India’s retail sector.

Explanation: These changes create a more secure and reliable UPI ecosystem, benefiting all stakeholders by reducing fraud, improving transaction success rates, and fostering trust in digital payments.

Key Details of the Mobile Number Revocation List

The Mobile Number Revocation List, managed by NPCI and supported by the RBI’s Digital Intelligence Platform, is a database of mobile numbers that are:

• Deactivated: Numbers unused for 90 days or more, as reported by telecom operators like Bharti Airtel, Jio, or Vodafone Idea.
• Reassigned: Numbers allocated to new users after deactivation, posing a fraud risk.
• Flagged for Fraud: Numbers linked to suspicious or fraudulent UPI transactions.

How It Works:

• Data Collection: Telecom operators submit deactivated/reassigned numbers to NPCI.
• Bank Action: Banks receive the list and identify UPI IDs linked to these numbers.
• Weekly Deactivation: Starting April 1, 2025, banks will deactivate non-compliant UPI IDs on a weekly basis.
• User Notification: Banks and UPI apps are required to notify users to update their mobile numbers before deactivation.

Explanation: The list ensures that only active, verified mobile numbers are linked to UPI IDs, closing loopholes that enable fraud and payment errors.

How to Ensure Your UPI ID Stays Active

To avoid having your UPI ID deactivated, follow these steps:

1. Check Your Linked Mobile Number:
   • Log into your UPI app (e.g., PhonePe, Google Pay) or bank account to confirm the registered mobile number.
   • Ensure it’s active and in your possession.
2. Update Your Number if Needed:
   • Visit your bank’s website, mobile app, or branch to update your registered mobile number.
   • In your UPI app, go to settings and link the new number, verifying it with an OTP.
3. Reactivate Inactive Numbers:
   • If your linked number is inactive (e.g., not recharged for 90 days), recharge it or contact your telecom provider to reactivate it.
   • Alternatively, switch your UPI ID to an active number.
4. Monitor Notifications:
   • Watch for alerts from your bank or UPI app about mobile number verification, especially in March 2025.
   • Act promptly to avoid disruptions starting April 1.
5. Secure Your UPI PIN:
   • Use a strong 6-digit UPI PIN and avoid sharing it.
   • Regularly check for unauthorized transactions in your UPI app.

Explanation: Proactively updating your mobile number ensures uninterrupted access to UPI services, protecting you from deactivation and fraud risks.

UPI’s Role in India’s Digital Economy

UPI, launched by NPCI in 2016, has transformed India’s payment landscape, accounting for 80% of retail digital transactions in 2025. Key highlights:

• Transaction Volume: 16.99 billion transactions in January 2025, a 40% YoY increase.
• Transaction Value: ₹23.48 lakh crore (~$280 billion USD), up 35% YoY.
• Market Share: PhonePe leads with 48%, followed by Google Pay (38%) and Paytm (~10%).
• Government Support: The RBI approved a ₹1,500 crore subsidy for UPI transactions under ₹2,000, covering bank costs to keep UPI free for users.

Explanation: UPI’s dominance in India’s digital economy, coupled with government backing, makes it a global fintech model, attracting interest from U.S. investors and tech enthusiasts studying emerging markets.

Additional Financial Updates: ATM Withdrawal Fees

In addition to the UPI changes, the RBI has increased interchange fees for ATM withdrawals, effective April 1, 2025, impacting users who rely on cash:

• Financial Transactions: The fee for withdrawing cash from another bank’s ATM has risen from ₹17 to ₹19 per transaction (+₹2).
• Non-Financial Transactions: Fees for balance inquiries or mini-statements have increased from ₹6 to ₹7 (+₹1).
• Free Transactions:
  • Metro cities (e.g., Delhi, Mumbai): 3 free transactions per month at other banks’ ATMs.
  • Non-metro cities: 5 free transactions per month.
• No Charge for Failed Transactions: Per RBI’s 2019 guidelines, failed ATM transactions (e.g., due to insufficient cash) incur no fees.
• White Label ATM Operators: Operators like Tata’s IndiCash requested higher fees to cover operational costs, especially in rural areas.
• Impact on Smaller Banks: Customers of smaller banks with fewer ATMs will face higher costs, as they rely more on other banks’ ATMs.

Explanation: The fee hike encourages digital payments like UPI while supporting ATM infrastructure in underserved areas, aligning with India’s cashless economy goals.

Frequently Asked Questions

1. What are the new UPI mobile number verification rules?

From April 1, 2025, UPI IDs linked to inactive or reassigned mobile numbers will be deactivated to prevent fraud and enhance security.

2. How will the new rules affect UPI users?

If your UPI ID is linked to an inactive number, you’ll be unable to receive payments unless you update your mobile number with your bank and UPI app.

3. What is the Mobile Number Revocation List?

It’s a database of deactivated, reassigned, or fraud-linked mobile numbers. Banks will use it to deactivate associated UPI IDs starting April 1, 2025.

4. How can I avoid UPI ID deactivation?

Update your mobile number with your bank and UPI app, ensure it’s active, and verify it with an OTP. Check notifications from your bank in March 2025.

5. Why are ATM withdrawal fees increasing?

The RBI raised interchange fees (₹17 to ₹19 for cash withdrawals, ₹6 to ₹7 for non-financial transactions) to support white label ATM operators, effective April 1, 2025.

Conclusion

UPI users alert! Banks & UPI apps to implement new mobile number verification rules from April 1, 2025, marking a significant step toward a safer and more reliable digital payment system in India. By deactivating UPI IDs linked to inactive or reassigned mobile numbers, the NPCI and RBI aim to curb fraud and enhance user experience, impacting millions of users, banks, and apps like PhonePe and Google Pay. U.S. readers, particularly those interested in fintech and emerging markets, can see UPI’s transformation as a model for global digital payments. To stay compliant, update your mobile number now and monitor bank notifications.