UPI Transaction May Stop If Your App Does Not Follow This New Rule

Thanks for sharing this update, Mitali! Yep, this is a crucial compliance update for all UPI apps and payment players in India.

Key points to keep in mind:

• From Feb 1, 2025, UPI transaction IDs cannot contain special characters like @ , #, $, etc.

• Only alphanumeric characters (A-Z, a-z, 0-9) will be allowed in UPI transaction IDs.

• If UPI apps don’t comply, transactions will be rejected by the NPCI central system, causing payment failures.

• This move is to ensure standardization and smooth interoperability across the entire UPI ecosystem.

What it means for businesses & users:

• Payment apps you use (Google Pay, PhonePe, etc.) need to update their systems to generate transaction IDs without special characters.

• If an app doesn’t update, your UPI payments through that app might start failing after Feb 1, 2025.

• This doesn’t affect transaction limits or mode of payments—only the format of transaction IDs.

If you run or work with a UPI-enabled app or payment gateway, now is the time to check for compliance and update systems.

On 6th August 2026 at Lok Sabha, passed the Taxation and Other Laws (Amendment) Bill, 2026, which allows the government to introduce UPI charges in the future, but UPI remains free for now. It does not currently set any MDR or fee.