What Is the New UPI Rule?
Starting June 30, 2025, NPCI will ban display names in UPI transactions. Only bank-verified names will appear.
Did You Know, Over ₹18 lakh crore in UPI payments were processed in March 2025 alone!
Right now, anyone can set a custom name on UPI apps like PhonePe, Google Pay, or Paytm. Fraudsters exploit this by creating fake names that resemble banks, businesses, or even friends.
For example, someone can set their name as “SBI Customer Care” or “Papa” and trick you into sending money. That’s changing now.
NPCI wants to curb this loophole with a strict new rule.
What Changes for You?
Here’s how UPI payments will work after June 30:
| Feature | Before June 30, 2025 | After June 30, 2025 |
|---|---|---|
| Display Name on UPI | User-defined nicknames | Only bank-verified names |
| Fraud Risk | High due to fake names | Lowered by verified ID display |
| Identity Clarity | Confusing | Clear and authentic |
| User Trust | Weak | Stronger, backed by real names |
Now, when you pay someone, you’ll see their actual bank-registered name, not “Raju DTH Recharge” or “Neha Gift Shop.” That ensures you’re sending money to the right person.
Why NPCI Is Doing This
The number of UPI frauds is rising every month. Scam calls and payment link traps are common across India.
NPCI believes this change will:
- Help users identify real recipients
- Reduce impersonation-based scams
- Build greater trust in digital payments
- Ensure smoother complaint handling
If a payment goes to the wrong person, it’s easier to resolve disputes using the official name.
Also, NPCI is pushing for a cleaner digital payments ecosystem as UPI usage explodes across villages, cities, and even small shops.
That’s more than the combined annual budget of many Indian states. NPCI’s new rule ensures this money doesn’t land in the wrong hands.
Also Read: UPI Meta Could Change Online Payments Forever
Conclusion
This update is one of the biggest changes in UPI since its launch. While some users may find it inconvenient at first, the security benefits are huge. Fraudsters won’t be able to mislead people using fake display names. Businesses will gain trust. And the average user will be safer online.
Expect your UPI app to notify you before this change rolls out. You don’t need to do anything, but just watch out for fake names disappearing after June 30.Digital India is about to get more secure.
Disclaimer
The information provided in this article is for general informational purposes only and does not constitute legal, tax, financial, or other professional advice. While every effort is made to ensure the accuracy and reliability of the information, laws and regulations may change, and individual circumstances vary.
Readers are encouraged to consult with qualified professionals or official government resources for personalized guidance regarding their specific situations. The author and publisher disclaim any liability for decisions made or actions taken based on the information provided herein.
