NPCI Rule: UPI apps to display recipients' bank-registered names only to counter Scams
According to an official circular issued by NPCI, the name of the actual holder of the bank account, officially linked, will be visible during a UPI transaction.
In order to keep surveillance on the security of digital payments, the National Payment Corporation of India (NPCIL) has issued a circular to disclose the actual names of the recipients registered with their banks during a UPI transaction. The said directive will come into effect from 30th June.
Here to know about New UPI Rule:
According to an official circular issued by NPCI, the name of the actual holder of the bank account, officially linked, will be visible during a UPI transaction.
Now onwards, UPI apps will be unable to display customised or user-set names that differ from bank records. Therefore, displayed name should exactly match the bank’s record without any alterations.
This revision of the rules would be applied to all UPI payment apps across India, including popular platforms.
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Reason to Revise the Rule:
As per the NPCI circular, the basic reason behind these changes is to Prevent fraud for misleading beneficiary names that have been used by fraudsters to transfer the money for unwanted reasons.
Meanwhile, these would entrust the Users to know who they are genuinely paying.
This would enhance more transparent measures for seamless transactions without any interruptions.
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This would bring More transparency where Users can verify the payee’s name as per bank records before confirming any payment.
Further, this will Lower the risk of scams done by fraudsters.
UPI app providers have to make sure to update their platforms to comply with NPCI’s decorum which requires technical adjustments to show only the bank-registered beneficiary name in the payment flow.
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