India is constantly setting new records in the field of digital payment. Billions of transactions are taking place every month through Unified Payments Interface (UPI). But now a new rule related to the UPI Transaction ID has been announced, which will be applicable from 1 February 2025.

The National Payments Corporation of India (NPCI) has clarified that a special character (eg @, #, $, %, &) will no longer be used in the UPI Transaction ID. If a transaction is done with an ID containing special character, it will automatically be rejected.

This step of NPCI has been taken with the aim of standardizing the UPI Transaction ID and making the system more secure. All payment service providers (PSPs) have been instructed to ensure following this new rule.

What is the new UPI rule and why changed?

Official statement of NPCI

NPCI announced this new change in a circular issued on 9 January 2025. It said that-

• Only alphanumeric character (AZ, AZ, 0-9) will be used in UPI Transaction ID.
• Any transaction with special character will be rejected.
• This step has been taken to bring up to the UPI technical specifications.

NPCI also clarified that the basis of this decision is the OC 193 instructions issued on 28 March 2024, recommending the UPI ecosystem to make all transaction IDs uniform and increase security.

New record of UPI transaction, growing digital payments

This new change is being made at a time when UPI transaction is constantly making new records.

According to NPCI data:

• The number of UPI transactions reached 16.73 billion in December 2024, which was 15.48 billion in November 2024. That is, it recorded an increase of 8%.
• The total value of UPI transactions reached ₹ 23.25 lakh crore in December 2024, while in November 2024 it was ₹ 21.55 lakh crore.
• The Daily Average Transaction Count also increased to 539.68 million (53.96 crore), which was 516.07 million (51.60 crores) in November.

The UPI’s unprecedented growth shows that the acceptance and popularity of digital payments in India is continuously increasing.

The effect of removal of special character: Will it change for you?

1. Do you have to make any changes in using UPI?

No, the plan will only apply to the format of the transaction ID. There has been no change in the process of sending or taking money from UPI.

2. What will be the benefit of removing special character?

• The transaction ID will be made standard and more secure.
• Fraud will help in curbing transactions.
• Transparency and stability will increase in the payment system.

3. Is your bank or UPI app ready for this change?

NPCI has issued instructions to all banks and payment service providers, so that all UPI systems can be updated according to this change before 1 February 2025.

The future of UPI Payments: What will be the next change?

UPI is consistently adopting new techniques, making it more user-friendly and safe. In the coming times-

• UPI International Payments: India is gradually planning to expand UPI internationally.
• Internet UPI Transaction: Offline UPI services are being promoted, so that digital payments can be made easier even in small cities and villages.
• AI and fraud detection: NPCI may soon apply AI based systems, which can immediately identify suspicious transactions.