UPI Transactions to Stop Working from Feb 1 if App Uses Special Characters

Starting February 1, 2025, the National Payments Corporation of India (NPCI) is imposing a new rule on UPI transaction IDs. From this date, no UPI payment app will be allowed to use special characters for generating transaction IDs. Instead, all players in the payment ecosystem will have to use only alphanumeric characters.

This is a move to standardize the generation of the UPI transaction ID so that it meets the technical specifications of UPI. Although this mandate is targeted towards business users, it will indirectly affect consumers who use UPI apps for transactions.

In case you are using a UPI app that presently uses special characters in transaction IDs, you will not be able to make any transactions through Unified Payment Interface from February 1, 2025, if the app doesn't get in compliance. This is a payment app's responsibility.

A circular from UPI dated January 9, 2025, stated that any transaction with an ID containing special characters would be declined by the central system. This change is effective February 1, 2025.

The NPCI has been working with the ecosystem to enhance compliance, but it has been noticed that some participants continue to be non-compliant. As compliance is a critical aspect of the specifications, the NPCI has decided not to allow any special characters in UPI transaction IDs.

Users need to ensure that their UPI app is compliant with this new rule to avoid any disruptions to their transactions. Payment apps must also take necessary steps to comply with this directive to prevent transaction declines.

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