The National Payments Corporation of India (NPCI), which manages the Unified Payments Interface (UPI) ecosystem, is working on privacy enhancements for digital payments. Under the proposed changes, UPI apps and banks may soon be required to mask users’ phone numbers during transactions.
According to reports, NPCI has already directed UPI apps and partner banks to begin preparations for hiding users’ mobile numbers. The move is aimed at ensuring that digital payment platforms comply with the Digital Personal Data Protection (DPDP) Act, which focuses on the collection, storage and sharing of personal information.
As per a Moneycontrol report, the government is in discussions with banks and UPI platforms regarding the implementation of these privacy measures. Banks and payment apps have reportedly been given a deadline of September 4 to complete the required changes.
Currently, mobile numbers are an important part of the UPI payment process as they help identify users and verify transactions. However, displaying phone numbers during payments has raised privacy concerns, as it can expose users’ personal contact details and increase the risk of unwanted communication or misuse of information.
A senior executive from a UPI app reportedly said that with the implementation of the DPDP framework, phone numbers and full names could become potential privacy risks. NPCI is working with banks and UPI apps to ensure that all participants understand their responsibilities and make necessary system-level changes.
Last month, NPCI issued a circular asking UPI apps and banking partners to protect customer information by masking details such as UPI IDs, mobile numbers and bank account numbers. The decision came after several users raised concerns on social media about the exposure of personal details during UPI transactions.
Under the new privacy guidelines, UPI apps are expected to display only limited information, with suggestions that only the last four digits of a user’s mobile number should remain visible.
For QR code-based payments, apps may no longer show the payer’s or receiver’s mobile number after a transaction is completed. Additionally, UPI platforms have been advised to offer users the option of creating UPI IDs that are not linked to their mobile numbers, allowing these IDs to be used as default payment addresses.
The proposed changes are expected to make UPI transactions safer and provide users with greater control over their personal information while using digital payment services.