New UPI Rule: Apps To Show Only Bank-Registered Names For Digital Payments — Why It Matters

The National Payments Corp. is set to introduce a major update to the Unified Payments Interface system. This change will come into effect from June 30. The new regulation is aimed at improving security and curbing fraud cases in digital payments across India.

At present, UPI apps such as Google Pay, PhonePe, Paytm and BHIM display the recipient’s name as saved by the sender in their contacts. This practice is reportedly exploited by fraudsters who use misleading or fictitious names to deceive users.

Under the new rule, UPI apps will no longer show the sender’s customised or saved names. Instead, the system will automatically display the recipient’s official name as registered with their bank, making it easier for users to identify the true beneficiary of a transaction.

This change will apply to both Person-to-Person and Person-to-Merchant transactions conducted through UPI. Whether users transfer money by entering a mobile number, UPI ID or scanning a QR code, the displayed name will correspond strictly to the bank-registered identity.

The way you make payments using UPI will largely stay the same — you can continue using phone numbers, UPI IDs or QR codes as usual. The main change is that before you confirm a payment, the name displayed will be the official one registered with the bank, instead of a nickname or a custom label.

• Improved fraud prevention: Users can cross-check the displayed name with the intended recipient, reducing the risk of falling victim to impersonation.

• Increased payment security: Clear identification of payees encourages safer transactions.

• Reduced errors: The likelihood of mistakenly sending money to the wrong person due to similar or misleading names is lowered.

Users are advised to carefully verify the recipient’s name shown during a transaction and refrain from proceeding if the name appears unfamiliar or suspicious.

Additionally, caution is urged when scanning QR codes, especially from unknown sources. Any doubtful or fraudulent activity should be promptly reported to the bank or the payment app’s customer support.