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

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Mitali

Finance Professional

45245 Points Posted on 30 January 2025

Special Characters in UPI Transaction IDs not Allowed

Only alphanumeric characters allowed (letters & numbers). Special characters (e.g., @ , #, $) will not be allowed in UPI transaction IDs.

Transactions Will Be Declined

Non-compliant UPI apps will face payment failures. Transactions will be rejected by the central system if a UPI app continues using special characters in transaction IDs after 1st February 2025.

Apps Must Comply

NPCI had earlier issued Circular OC 193 on March 28, 2024, advising UPI players to adopt alphanumeric transaction IDs.
Despite efforts to enforce compliance, some UPI operators are still non-compliant.
The new rule ensures full standardization across the UPI ecosystem.

Effective from Feb 1, 2025

All UPI transactions with special characters in ID will be blocked.

Click Here To Know More About UPI Transaction Limit.

Replies (2)

Quick Summary

From February 1st, 2025, all UPI transaction IDs must use only alphanumeric characters (letters and numbers). Special characters like '@', '#', or '$' will no longer be permitted. UPI apps failing to comply risk having their transactions declined by the central system, potentially leading to payment failures for users. This change aims to standardise the UPI ecosystem for smoother operations.

Aashok Kumar Sharma

Finance/Compliance Consultant

68344 Points Posted on 15 August 2025

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.

Mitali

Finance Professional

45245 Points Posted on 10 August 2026

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.