Your UPI payments could soon be more private; NPCI plans to mask phone numbers on UPI apps
NPCI, which operates the UPI payment system, has already asked UPI apps and banks to start masking users' phone numbers. Here's how UPI apps may work with UPI IDs.
- Jul 29, 2026,
- Updated Jul 29, 2026 11:17 AM IST
The National Payments Corporation of India (NPCI) is reportedly pushing privacy upgrades for UPI payments and discussing plans to mask phone numbers. The government is reportedly in talks with banks and UPI apps to ensure that online payment services comply with India's Digital Personal Data Protection (DPDP) Act on how companies collect, store, and share personal data.
User privacy upgrades on UPI apps
According to a Moneycontrol report, NPCI, which operates the UPI payment system, has already asked UPI apps and banks to start masking users' phone numbers. The government has reportedly given banks and payment apps until September 4 to implement these changes.
Must read: From Aadhaar to UPI: Why Nandan Nilekani remains India's go-to architect for nation-scale reforms
Currently, phone numbers play a crucial role in making UPI payments as they help identify users and verify transactions. However, exposing users’ phone numbers is said to create a privacy concern because it will remain visible during transactions, making it easier for others to access their personal contact information.
Moneycontrol quoted a senior executive from a UPI app who said, “The DPDP implementation would mean that phone numbers or full names could be a privacy risk, and NPCI is talking to banks and UPI apps to ensure that their systems are ready to understand and fix the roles and responsibilities on each participant.”
Last month, NPCI issued a circular directing all UPI apps and partner banks to mask customers' phone numbers. As per the directive, UPI platforms are instructed to hide customer information such as UPI IDs, mobile numbers, and bank account numbers.
The decision was taken after users filed multiple complaints on social media, saying that displaying phone numbers during UPI transactions exposed them to privacy and safety risks, including unwanted contact and identity concerns.
If not phone numbers, how will UPI payments be made?
NPCI has introduced specific privacy rules for UPI apps that hide the personal information of the users. It is suggested that only the last four digits of a user's mobile number should be visible.
For QR code payments, the app should not display the payer's or recipient's mobile number once the payment is completed. Furthermore, the government has instructed UPI apps to allow users to create UPI IDs that are not based on their mobile number, and these can be used as defaults.
For Unparalleled coverage of India's Businesses and Economy – Subscribe to Business Today Magazine
The National Payments Corporation of India (NPCI) is reportedly pushing privacy upgrades for UPI payments and discussing plans to mask phone numbers. The government is reportedly in talks with banks and UPI apps to ensure that online payment services comply with India's Digital Personal Data Protection (DPDP) Act on how companies collect, store, and share personal data.
User privacy upgrades on UPI apps
According to a Moneycontrol report, NPCI, which operates the UPI payment system, has already asked UPI apps and banks to start masking users' phone numbers. The government has reportedly given banks and payment apps until September 4 to implement these changes.
Must read: From Aadhaar to UPI: Why Nandan Nilekani remains India's go-to architect for nation-scale reforms
Currently, phone numbers play a crucial role in making UPI payments as they help identify users and verify transactions. However, exposing users’ phone numbers is said to create a privacy concern because it will remain visible during transactions, making it easier for others to access their personal contact information.
Moneycontrol quoted a senior executive from a UPI app who said, “The DPDP implementation would mean that phone numbers or full names could be a privacy risk, and NPCI is talking to banks and UPI apps to ensure that their systems are ready to understand and fix the roles and responsibilities on each participant.”
Last month, NPCI issued a circular directing all UPI apps and partner banks to mask customers' phone numbers. As per the directive, UPI platforms are instructed to hide customer information such as UPI IDs, mobile numbers, and bank account numbers.
The decision was taken after users filed multiple complaints on social media, saying that displaying phone numbers during UPI transactions exposed them to privacy and safety risks, including unwanted contact and identity concerns.
If not phone numbers, how will UPI payments be made?
NPCI has introduced specific privacy rules for UPI apps that hide the personal information of the users. It is suggested that only the last four digits of a user's mobile number should be visible.
For QR code payments, the app should not display the payer's or recipient's mobile number once the payment is completed. Furthermore, the government has instructed UPI apps to allow users to create UPI IDs that are not based on their mobile number, and these can be used as defaults.
For Unparalleled coverage of India's Businesses and Economy – Subscribe to Business Today Magazine