Good News for UPI Users – A Major Change Coming from June 30

Unified Payments Interface (UPI) is rapidly growing across India. With its increasing usage, enhancing user experience and security has become crucial. Keeping this in mind, the National Payments Corporation of India (NPCI) has announced a new rule for UPI that will come into effect from June 30, 2025. The aim of this move is to reduce fraud and boost the safety of digital transactions.

What Will Change?

Currently, UPI apps like Google Pay, PhonePe, Paytm, and BHIM show the recipient’s name as saved on the sender’s device. This has made it easier for fraudsters to use fake or misleading names and hide their true identity.

From June 30, the system will automatically display the official bank-registered name of the recipient before the money is transferred, instead of showing any custom or saved name.

Transactions Covered Under the New Rule:

This rule will apply to two types of UPI transactions:

1. Person-to-Person (P2P): Money sent from one user to another.
2. Person-to-Merchant (P2M): Payments made to businesses, shops, or cafes.

Whether the transaction is done via QR code, mobile number, or UPI ID, the sender will see the recipient’s registered name.

Why Was This Rule Needed?

With the rising number of UPI users, cases of fraud using fake names and QR codes have also increased. This new rule is designed to make it harder for fraudsters to hide their identity and reduce such frauds.

Also Read- How Much Your Bank Would Charge You For UPI Transactions

How Will This Benefit Users?

• Detect Fraud Early: The sender can verify if the money is going to the right person by checking the official registered name.
• Safer Payments: Improved transparency will increase trust in digital payments.
• Fewer Mistakes: It reduces the chances of sending money to the wrong person.

What Should Users Do?

• Always verify the name shown before completing a transaction.
• Avoid scanning QR codes from unknown people.
• Report suspicious activity to your bank or the helpdesk of your payment app.

This update is a major step towards a more secure and trustworthy UPI ecosystem.