Earlier people used to make payments through UPI even abroad by sharing QR code. But now this facility will be stopped.

You are used to making payments or transactions through UPI . You also keep going abroad. Then this news is useful for you. The National Payment Corporation of India (NPCI) has issued a new circular on April 8, 2025. This circular will affect international UPI payments made through QR code. Now it will not be easy to make payments abroad by scanning QR code. This rule has come into effect from April 4, 2025.

What does the circular say

According to NPCI, the ‘ QR Share and Pay’ feature will no longer be available for UPI global P2M (Person to Merchant) transactions. Payer PSPs will have to ensure that the Payer UPI app recognizes it. This means that you will no longer be able to make payments abroad by sharing QR codes. You can understand it in a simple way like this, suppose you buy something from a shop abroad. They send you a QR code for payment. You save that QR code in your phone. Now, if you scan that QR code, you will not be able to make the payment.

UPI is running in 7 countries

According to the NPCI website, currently 7 countries including France, Mauritius, Nepal, Singapore, Sri Lanka and UAE accept UPI-based QR payments from India . In these countries, you can make payments by directly scanning the QR code.

What will be its effect

Now we understand how this new rule will affect users and merchants. Till now, merchants, especially small merchants, used to send their QR codes to customers through WhatsApp and other social media. Customers used to save that QR code in their phones. Then they used to scan it and make payment using a PSP (payment service provider) app like Paytm or PhonePe. This facility was available to merchants both in India and abroad. But now, UPI payments will not be possible abroad by sharing QR codes. Payment service providers (PSPs) have been asked to ensure that their UPI applications recognize and block such international QR share-and-pay-based transactions.

What in your country

Don’t get confused with domestic QR Share & Pay-based transactions. The rule states that the limit for ‘QR Share & Pay’ will be Rs 2,000 for all P2M (non-verified offline merchants). The Payer PSP has to ensure that the Payer UPI app recognises it. This means that if you are making a QR code payment to a merchant in India that is not registered with NPCI, you will not be able to pay more than Rs 2,000 at a time through the QR Share & Pay method. It is worth noting that the domestic limit of Rs 2,000 is already in place. This change has been made only for international transactions.

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What is the new rule?

As per the new instructions of NPCI, banks will have to remove mobile numbers from their system which have been closed or reassigned to new customers. This step has been taken to prevent errors in UPI transactions.

Data will be updated every week

In the meeting held on 16 July 2024, NPCI decided that:

• Banks and payment service providers (PSPs) will have to update their data weekly.
• In this process, the list of those mobile numbers will be removed which are now closed or have been given to some other customer.
• This will reduce the chances of transactions on wrong number and increase security.
  

  What should UPI users do?

  Due to the new guidelines of NPCI, UPI users should take special care of the following things:

  • Update Registered Mobile Number: If you have recently changed your mobile number, update it immediately in your bank and UPI app.
  • Keep an eye on notifications from UPI apps: UPI apps will now seek explicit consent for number updates. An ‘opt-in’ option will be provided for this, so that no changes will be made without the user’s approval.
  • Contact the bank: If your old mobile number is closed, inform the bank immediately so that the security of your account remains intact.
  • Interruption in receiving money: If a customer’s number is not updated, they may face problems in receiving money through UPI.

  New instructions for banks and payment service providers

  NPCI has given banks and UPI service providers time till March 31, 2025 to implement these rules.

  From 1 April 2025:

  • All banks have to submit monthly reports to NPCI.
  • This report will include details of total UPI IDs, number of active users, transactions done through updated mobile numbers and number-based transactions resolved locally.

  Impact of the new rules

  The positive impact of these new guidelines implemented by NPCI can be seen as follows:

  • Security in UPI transactions will increase: Incidents of sending money to wrong numbers will decrease.
  • Incidents of fraud will be reduced: Due to the number update process, the chances of scams and fraud will be reduced.
  • UPI experience will improve: Users will feel more comfortable and secure in transactions.

  Objective of NPCI

  The main objective of NPCI is to make UPI transactions secure and more convenient in the interest of consumers. After the implementation of the new rules, the digital payment system will become more robust and secure.

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