Big Changes Coming to UPI Payments to Prevent Fraud From June 30 – Check Details

In a major move to reduce digital payment frauds, the National Payments Corporation of India (NPCI) has mandated that all UPI (Unified Payments Interface) apps display only the verified bank-registered name of the beneficiary before a transaction is completed. The directive, issued via a circular dated April 24, 2025, is expected to enhance transparency and minimize the scope of frauds that exploit alias or misleading display names.

Currently, many UPI apps show user-defined names or those pulled from QR codes or contact lists—making it easier for scammers to trick payers. From June 30, 2025, however, this practice will end. UPI apps must then show only the “ultimate beneficiary’s name” as registered in the Core Banking System (CBS) database.

What Changes for UPI Users?

Until now, UPI apps allowed display names that often did not match the bank-registered name. This gap was exploited by fraudsters who created fake merchant names or aliases resembling legitimate businesses.

The NPCI’s new rule mandates that UPI applications must:

• Use the Validate Address API to fetch and display the real beneficiary name
• Disable features that allow users or vendors to modify the name displayed during transactions
• Eliminate the use of names from QR codes, saved contact names, or app-defined aliases

This applies to both P2P (peer-to-peer) and P2PM (peer-to-peer-merchant) transactions, the latter including small vendors and local shops in the unorganised sector.

Why It Matters

According to Deepak Chand Thakur, CEO of NPST, “The earlier flexibility in name display created inconsistency and opened doors for fraudulent tactics.” Mukesh Chand of Economic Laws Practice added that this standardization would help prevent scams based on lookalike names and aliases.

Rahul Jain, CFO of NTT DATA Payment Services India, explained that this change would curtail frauds involving spoofed names of established brands—where scammers trick customers into transferring money to unintended recipients.

Now, since the verified name is fetched directly from the bank’s secure database, users can make payments with confidence, knowing exactly who the recipient is.

Will the Payment Experience Change?

According to Atul Gupta, Head of Risk & Compliance at Cashfree Payments, the update won’t significantly change how users make payments, but it will improve accuracy. Rohit Mahajan of plutos ONE noted there could be minor initial adjustments for users accustomed to nicknames or brand aliases.

But overall, the user experience is expected to become safer, more standardized, and more transparent.