
The National Payments Corporation of India (NPCI) has introduced new regulations for Unified Payments Interface (UPI) transactions, set to take effect from February 1, 2025. As per the latest guidelines, UPI IDs containing special characters such as #, @, $, or * will no longer be valid. This move is aimed at enhancing the security and compliance of the UPI ecosystem.
New UPI ID Guidelines
According to an NPCI circular dated January 9, 2024, UPI participants have been instructed to use only alphanumeric characters (letters and numbers) for generating UPI transaction IDs. The decision was made to align with UPI technical specifications and ensure smooth processing of digital transactions.
“Considering the criticality of compliance with the specifications, it has been decided not to allow any special characters in the UPI transaction ID. Any transaction with an ID containing special characters shall be declined by the central system. This shall be effective from February 1, 2025,” the NPCI stated in its directive.
All banks and payment service providers have been urged to comply with these rules and notify users well in advance.
What Are Special Characters?
Special characters refer to any symbols that are not part of the standard 26-letter English alphabet (A-Z) or digits (0-9). This includes punctuation marks, accent marks, and various other symbols. Users with UPI IDs containing these characters will need to update them before the deadline to avoid transaction failures.
UPI’s Dominance in India’s Digital Payments
UPI has been a game-changer in India’s digital payment ecosystem. According to the Reserve Bank of India (RBI), UPI’s share in India’s digital payments skyrocketed from 34% in 2019 to 83% in 2024, with an impressive 74% cumulative average growth rate (CAGR) over five years.
Meanwhile, the share of other payment methods such as RTGS, NEFT, IMPS, credit cards, and debit cards has shrunk from 66% to 17% during the same period.
At a broader level, UPI transaction volumes surged from 375 crore in 2018 to 17,221 crore in 2024, while the total transaction value jumped from ₹5.86 lakh crore to ₹246.83 lakh crore in the same period.
What Users Should Do
- Check if your UPI ID contains any special characters like #, @, $, or *.
- If it does, contact your bank or payment service provider to update your UPI ID.
- Ensure that your new UPI ID consists only of letters and numbers to comply with the new regulations.
This update is part of NPCI’s ongoing efforts to strengthen security and streamline digital payments across India. Users are advised to take necessary actions well before the deadline to avoid disruptions in their UPI transactions.
Sources By Agencies