UPI Shake-Up: Only Bank-Verified Names to Show from June 30 in Bold Anti-Fraud Push

The National Payments Corporation of India (NPCI) has announced a significant update to the Unified Payments Interface (UPI) system, part of a broad overhaul that would affect thousands of digital payment customers nationwide.

All UPI-based applications, including Google Pay, PhonePe, and Paytm, will stop using contact-saved identities and nicknames during transactions and instead only show the recipient's official bank account name as of June 30, 2025.

Currently, the beneficiary's name that appears when users initiate a UPI payment is frequently the one that is stored in their personal contact list. Despite its convenience, this approach has been shown to be open to abuse by hackers who use false names to hide their identities.

 Authorities claim that the impending change is an explicit effort to reduce this kind of fraud and improve transaction transparency.

Bringing All Parameters Under One Umbrella

Users can now send money using a cellphone number, UPI ID, or QR code scan, and the name that appears on the screen before payment confirmation will only be the name associated with the recipient's bank account.

 Both Person to Person (P2P) and Person to Merchant (P2M) transactions will be subject to this modification in the same standardised manner. The process for making UPI payments is still the same; users can still start transactions with QR codes, UPI handles, or mobile numbers.

Before users press "Send", however, they will see a completely different name—just the official account name—instead of "Raju Grocery", "Mummy", or "Cab Driver Singh". The action is a component of NPCI's larger initiatives to counteract the growing number of frauds involving UPI, many of which rely on identity confusion or impersonation.

The Move Tends to Bring Lot of Benefits

It is common for criminals to use well-known or reliable names to entice victims. Such fraud is made more difficult by substituting confirmed bank names for user-saved nicknames. It will now be easier for users to verify the recipient's identification before approving payment.

There may be a significant drop in incorrect transfers to the incorrect contact, particularly among those with similar names. Users of digital payments are advised to take some simple safety measures as the shift draws closer.

Before making a payment, carefully check the name that is presented. Do not proceed if anything appears strange or suspicious. Contact customer service at your bank or payment app right away if you see any strange activity.

The UPI ecosystem in India has expanded rapidly, with over 1300 crore transactions occurring each month. However, vulnerability comes along with scale. As the country moves closer to a cashless economy, the NPCI's most recent directive is viewed as a crucial course correction to protect digital trust.