From Feb 1, these UPI transactions to be declined by the system. See details here

Do you often use the Unified Payments Interface (UPI) for making sundry payments – whether it is paying your cab driver, online shopping, or for the roadside chai? If so, you must have noted that your UPI app generates a transaction ID as you transfer the money. These IDs are supposed to be alphanumeric only but sometimes, they can have special characters too. 

The National Payments Corporation of India (NPCI ) issued a circular stating that from Feb 1 onwards, the central system will decline all transactions containing special characters.

Alphanumeric IDs only

The circular, dated January 9, advised UPI ecosystem players to generate UPI transaction IDs using only alphanumeric characters to ensure compliance with UPI technical specifications.

The National Payments Interface of India pointed out that the issue has largely been resolved, but a few of the participants continue to be non-compliant. In view of the criticality of compliance with the specifications, it has been decided not to allow any special characters inUPI transaction ID.

Any transaction with ID containing special characters will be declined by the central system.

All participating entities are advised to take note of this and ensure compliance.

Notably, payments through UPI have risen quite fast in the past few years, particularly since demonetisation in 2016.

The latest data show that UPI transactions hit a record 16.73 billion in December 2024. This is eight per cent higher than November, which recorded 15.48 billion transactions.

In terms of value, the December figure stood at ₹23.25 lakh crore, higher than ₹21.55 lakh crore in November.

Jumped deposit fraud

In another development, it was reported that fraudsters are targeting UPI users by making small deposits into their accounts and then using different tactics to deceive them into authorising larger payment requests.

The development was referred to as jumped deposit scam. However, the NPCI has clarified that no reports about such incidents have been found on the UPI platform.

"In light of recent media reports concerning a new online fraud called ‘Jumped Deposit’ Scam, we have observed certain inaccuracies and technical discrepancies in these descriptions, that has led to unnecessary panic and confusion among users about the UPI platform," NPCI said in a statement.

“Simply opening a UPI or bank application does not automatically approve a transaction. Users must explicitly authorise a payment request by entering their UPI PIN. Without this step, no transaction can be processed,” NPCI clarified.