NPCI Orders Phone Number Masking on UPI
The National Payments Corporation of India is working with banks and payment applications to strengthen privacy across the Unified Payments Interface. The proposed changes include masking phone numbers and promoting username-based UPI IDs instead of mobile-number-linked payment addresses.
NPCI Orders UPI Phone Number Masking
UPI member banks and payment applications have been instructed to conceal users’ mobile numbers, account numbers and UPI IDs across customer-facing interfaces and communications.
Only the last four digits of a customer’s mobile number should be visible to the other party during a transaction. For payments completed through QR codes, applications should not display the customer’s mobile number after the transaction is completed.
The compliance deadline has reportedly been set for September 4, 2026.
Username-Based UPI IDs to Become Default
UPI applications must allow customers to create payment IDs that are not based on their mobile numbers and set those usernames as their default UPI addresses.
Many first-time users currently select their mobile number as part of their virtual payment address because it is the most prominent option during registration. Username-based IDs have long been available, but awareness and adoption have remained limited.
Making usernames the default option is expected to reduce unnecessary exposure of personal phone numbers during digital transactions.
UPI Apps Prepare for DPDP Compliance
NPCI is consulting banks and payment platforms on their responsibilities under India’s Digital Personal Data Protection framework.
Phone numbers are central to registering, identifying and verifying UPI users, but displaying them across payment interfaces can create privacy and security risks. The discussions aim to ensure that each participant in the UPI ecosystem understands its role in protecting customer information.
The changes will require banks and applications to update transaction screens, receipts, alerts and other customer communications.
