The National Payments Corporation of India (NPCI), which oversees retail payment and settlement systems in the country, has introduced updated guidelines for UPI transaction IDs. These new regulations will take effect from February 1, 2025. Under the revised rules, any UPI transaction ID containing special characters such as #, @, $, or * will be blacklisted. 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.
This means that starting today, UPI payment applications must ensure that transaction IDs are generated using only alphanumeric characters. Transactions featuring special characters in their IDs will be automatically rejected by the central system. In a circular issued on January 9, NPCI advised all participants in the UPI ecosystem to adhere strictly to alphanumeric formatting to maintain compliance with technical specifications.
NPCI said, “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.”
UPI’s Share In India’s Digital Payments
The Unified Payments Interface (UPI) has seen a significant rise in its share of digital payments in India, growing from 34 per cent in 2019 to an impressive 83 per cent in 2024, according to the Reserve Bank of India’s payment system report. This expansion reflects a strong compound annual growth rate (CAGR) of 74 per cent over the past five years.
Meanwhile, the share of other digital payment methods—including RTGS, NEFT, IMPS, credit cards, and debit cards—has dropped from 66 per cent to just 17 per cent during the same period. The report highlights UPI’s role as the driving force behind India’s digital payment boom, citing its convenience and widespread adoption. On a broader scale, UPI transaction volumes skyrocketed from 375 crore in 2018 to 17,221 crore in 2024, while the total transaction value surged from Rs 5.86 lakh crore to Rs 246.83 lakh crore over the same timeframe.
