UPI users of Google Pay, PhonePe, Paytm, and BHIM should take note of a new change that will have a positive impact on their transactions.

The National Payments Corporation of India (NPCI), the umbrella organisation that facilitates services such as UPI Payment, Bharat Bill Pay, RuPay Card, and all retail payments in India, has issued a circular requiring that the ultimate beneficiary be displayed in UPI transactions.

Key Highlights

• UPI apps like Google Pay, Paytm, PhonePe, and BHIM will display the recipient's name before transaction confirmation to prevent misdirected payments. 
• This update aims to reduce fraud and ensure accurate fund transfers by verifying beneficiary details in real-time. 

According to a circular from the NPCI, the ultimate beneficiary must be displayed on the payer app as well as when the transaction statement/history is displayed.

According to the NPCI, UPI apps must implement the following changes to instill confidence in customers that they are sending money to the correct beneficiary and avoid potential risk:

1. Display of only the Ultimate Beneficiary Name (CBS name) for P2P and P2PM transactions: UPI applications must ensure that only the ultimate beneficiary's name (the banking name obtained from the Validate Address API) is displayed to the user on the pre-transaction details page. The payer should not see names extracted from QR codes, user-defined payee names, or any other logic in the UPI App.

2. Restrict user detail modification of beneficiary name: UPI Apps must disable any features that allow users to change their 'Beneficiary Name' for transaction purposes in the interface.

The application

The UPI ecosystem members must comply with the above by June 30, 2025, or risk being considered non-compliant, according to the NPCI.