New Delhi: In a move aimed at curbing fraud in digital transactions, the National Payments Corporation of India (NPCI) has mandated all UPI applications to display only the recipient’s name as registered with their bank. The directive, issued via an official circular, comes into effect from 30 June.
The new rule disallows UPI apps from showing custom or user-defined names in payment interfaces. From 30 June onward, only the verified name as maintained in the bank’s records will appear to the sender during any transaction.
This change applies to all UPI platforms across India, including widely used apps such as PhonePe, Google Pay, Paytm and BHIM. App developers will be required to update their systems to align with the new compliance standards set by NPCI.
Addressing Fraud Linked to Misleading Names
The move follows rising concerns over fraudulent transactions in which scammers manipulate recipient names to deceive users. By enforcing the display of actual account holder names, the NPCI aims to minimise the risk of users transferring money to unintended or fraudulent parties.
According to the circular, fraudsters have often exploited the option to use misleading display names, tricking users into believing they are sending money to someone they know or trust. The NPCI’s revised rule intends to close this gap by increasing transparency during the payment process.
Implications for Users and Platforms
For users, this change introduces a critical layer of verification, allowing them to match the payee’s name with their expectations before completing a transaction. For UPI app providers, the directive means implementing technical changes to ensure only bank-authenticated names appear in the payment flow.
While the change might slightly alter user experience, especially for those who rely on familiar display names or nicknames, the broader goal is to enhance trust in digital payments.
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