No more scams: UPI apps to now show recipients' bank-registered names only

New NPCI rule makes UPI safer by displaying only bank-verified names, cutting down fraud, confusion, and shady display names in payment apps

To boost security and reduce fraud in digital payments, the National Payments Corporation of India (NPCI) has directed the Unified Payments Interface (UPI) apps to display the actual names of the recipients registered with their banks during a UPI transaction. The directive will come into effect from June 30.

 

What does the new UPI rule say?

 

According to an official circular issued by NPCI, the only beneficiary name visible to users during a UPI transaction will be the one officially linked to the bank account. This means:

 

·  UPI apps can no longer display customised or user-set names that differ from bank records.

 

·  The displayed name must exactly match the bank’s record without any alterations.

 

·  This change applies to all UPI payment apps across India, including popular platforms.  ALSO READ | NPCI steps up UPI vigil to prevent future disruptions in core network

Why is NPCI enforcing this rule?

 

NPCI states the primary motivation is strengthening beneficiary name verification to:

 

·  Prevent fraud: Fake or misleading beneficiary names have been used by fraudsters to trick users into transferring money to unintended recipients.

 

·  Enhance trust: Users will have more confidence that the person they are paying is genuinely who they intend to pay.

 

·  Reduce disputes: Misunderstandings caused by mismatched beneficiary names will decline, leading to smoother transactions.

 

What does this mean for users?

 

·  More transparency: Users can verify the payee’s name as per bank records before confirming payment.

 

·  Lower risk of scams: Reduced chance of falling for fake or deceptive beneficiary names.

 

·  Potential initial confusion: Some users may find differences between the previously saved names in their app and the new official names, but this is a step toward safer payments.

   

UPI app providers must update their platforms to comply with NPCI’s mandate. This involves technical adjustments to fetch and display only the bank-registered beneficiary name in the payment flow.

 

NPCI’s new rule is a significant step toward enhancing the security and reliability of UPI payments. By ensuring that only verified, bank-registered beneficiary names are displayed, users get an additional layer of assurance. As digital payments continue to surge in India, such measures will be crucial to protect consumers from fraud and maintain trust in the system.

 

For a seamless, safer payment experience, users should also remain vigilant, cross-check beneficiary details, and report any suspicious activity immediately.