UPI Transaction IDs with These Characters to Be Blocked from Feb 1 – How to Stay Safe

The National Payments Corporation of India (NPCI), which manages retail payment systems in India, has introduced new rules for UPI transaction IDs, effective from February 1, 2025. Under these guidelines, transaction IDs containing special characters such as #, @, $, or * will be blocked.

It means starting from February 1, 2025, UPI payment apps will no longer be allowed to use special characters in generating transaction IDs. If you are using a UPI app that includes special characters in its transaction IDs, such transactions will be rejected by the central system.

According to a circular issued by the National Payments Corporation of India (NPCI) on January 9, UPI ecosystem players were advised to use only alphanumeric characters for generating UPI transaction IDs. This is to ensure compliance with UPI technical specifications.

“Considering the criticality of compliance with the specifications, it has been decided not to allow any special characters in the UPI transaction ID. Any transaction with an ID containing special characters shall be declined by the central system. This shall be effective 1 February 2025.”

“All participating entities are advised to take note of the above and ensure compliance. The information herein may please be disseminated to all the concerned for necessary action.”

Special characters are any characters that are not part of the standard 26-letter alphabet or numbers 0-9. They include punctuation marks, accent marks, and other symbols. 

UPI’s Dominance in India’s Digital Payments

The Unified Payments Interface (UPI) has witnessed a significant rise in its share of digital transactions in India, increasing from 34% in 2019 to an impressive 83% in 2024. According to the RBI’s payment system report, UPI has achieved a remarkable compound annual growth rate (CAGR) of 74% over the past five years.

In contrast, traditional digital payment methods such as RTGS, NEFT, IMPS, credit cards, and debit cards have seen a decline in transaction volume, dropping from 66% to just 17% during the same period.

The report highlights UPI as the primary driver behind India’s digital payment expansion, attributing its success to its convenience and widespread adoption.

UPI transaction volume has skyrocketed from 375 crore in 2018 to 17,221 crore in 2024. Meanwhile, the total transaction value surged from ₹5.86 lakh crore in 2018 to ₹246.83 lakh crore in 2024, reflecting its growing influence in the financial ecosystem.