According to the National Payments Corporation of India (NPCI), starting February 1, any UPI transaction IDs containing special characters will be declined by the central system. In a circular issued on January 9, the NPCI advised UPI ecosystem players to use only alphanumeric characters for transaction IDs to comply with UPI technical specifications. Although most issues have been addressed, some participants have continued to disregard these guidelines, leading to the decision to reject transactions with special characters in their IDs.

UPI Growth and Security: NPCI’s Efforts to Ensure Compliance and Protect Users
This action is part of ongoing efforts to maintain compliance with UPI standards. The NPCI has stressed that all participating entities must follow this directive to prevent transaction failures. UPI payments, which have grown significantly since demonetization in 2016, have become a vital component of India’s digital payment ecosystem. In December 2024, UPI recorded a remarkable 16.73 billion transactions, an 8% increase from November, with the total value reaching ₹23.25 lakh crore, up from ₹21.55 lakh crore the previous month.
In response to reports of a new fraud targeting UPI users, referred to as the “jumped deposit scam,” the NPCI clarified the situation. The scam allegedly involves fraudsters making small deposits into users’ accounts and then tricking them into authorizing larger payments. However, the NPCI denied the existence of such a scam, emphasizing that users must explicitly authorize payments by entering their UPI PIN.
Reassuring UPI Users: Ensuring Secure Transactions with Proper Authorization
Without this step, no transaction can be processed, and the reports, which contained inaccuracies, had caused unnecessary panic. The aim of this clarification is to reassure UPI users that all transactions are secure and that proper authorization, through the UPI PIN, is required for every payment.
Summary:
Starting February 1, UPI transactions with special characters in their IDs will be declined. The NPCI emphasized compliance with technical standards, noting the rapid growth of UPI payments. Additionally, the NPCI clarified misconceptions about the “jumped deposit scam,” reassuring users that proper authorization through a UPI PIN is required for secure transactions.