These UPI transactions will be declined from today, according to NPCI

The National Payments Corporation of India (NPCI) has enforced a new compliance guideline for Unified Payments Interface (UPI) transactions, stating that any transaction ID containing special characters will be declined starting today. The move is part of NPCI’s technical compliance framework, initially introduced in March 2024, to standardise transaction identifiers across the digital payments ecosystem.

NPCI first issued a directive on March 28, 2024, advising banks, UPI platforms, and payment service providers to remove special characters from transaction IDs. However, despite significant improvements, some UPI participants have remained non-compliant.

In its latest January 9, 2025 notification, NPCI reaffirmed its stance, stating that from February 1, 2025, any non-compliant transactions will automatically fail if they contain special characters in their transaction IDs.

While end users do not need to take any action, merchants and businesses must ensure that their UPI transactions adhere to the new format. Failing to do so may lead to payment failures. Users are also advised to update their UPI apps to prevent any potential glitches arising from the change.

NPCI clarified that the decision to eliminate special characters was aimed at simplifying transaction IDs, ensuring better storage, tracking, and compliance with security protocols. Additionally, UPI transaction IDs must remain unique and adhere to a 35-character limit, as mandated by NPCI’s technical specifications.

This update follows NPCI’s continued push for standardisation within the UPI framework to maintain seamless, secure, and efficient digital transactions across India’s growing fintech ecosystem.