UPI to Show Verified Bank Names Before Payment: A Major Step to Reduce Fraud
Starting June 30, 2025, all UPI apps will be required to display only the verified bank-registered name of the beneficiary before payment. This new mandate by the National Payments Corporation of India (NPCI) aims to curb rising incidents of UPI fraud, especially those involving misleading display names or aliases.
What Is Changing in UPI Transactions?
Display of Verified Beneficiary Name
Currently, UPI apps often show user-defined names, aliases from QR codes, or even saved contact names.
- From June 30, apps must fetch and display the actual name registered in Core Banking System (CBS) records via the Validate Address API.
- This will apply to P2P (peer-to-peer) and P2PM (peer-to-person-merchant) transactions.
- No manually entered names, brand aliases, or saved contacts will be shown on the pre-transaction screen.
Why the Change Matters
Accurate Identification Reduces Fraud Risk
Scammers often manipulate display names to impersonate trusted individuals or businesses.
- The new system ensures the name shown is the actual bank-verified name, reducing cases of mistaken identity.
- This move will help prevent accidental payments to fake or similarly named UPI handles.
Eliminates Anonymity Exploited by Fraudsters
Previously, fraudsters could set up misleading UPI IDs with fake display names.
- By displaying only CBS-sourced names, the scope for using aliases to deceive users is greatly reduced.
- The system becomes more transparent, leaving less room for manipulation.
How This Impacts Customers
More Transparency During Transactions
Users will now see the exact name of the person or entity receiving the funds.
- This minimizes errors in fund transfers due to mistaken identity.
- It also builds trust in the digital payments ecosystem, especially when transacting with unknown recipients.
No Major Change to Payment Flow
The core transaction process remains unchanged.
- The update only affects the display of beneficiary names, not the UPI ID or payment steps.
- Users will still use QR codes, mobile numbers, or UPI handles, but with added name validation clarity.
Impact on UPI Apps and Banks
Standardization Across Platforms
Apps like PhonePe, Google Pay, Paytm, and BHIM will need to update their UI/UX interfaces.
- They must integrate the Validate Address API to retrieve CBS-based names before displaying transaction details.
- UPI apps must disable all features that allow users to modify or personalize the beneficiary name shown.
Bank Systems to Be the Single Source of Truth
The Core Banking System (CBS) database becomes the sole authority for identifying beneficiaries.
- CBS stores official customer names, account info, and facilitates real-time payment verifications.
- As names fetched from CBS cannot be altered, the process ensures authenticity and accuracy.
Expected Reduction in UPI Fraud
Real-Time Verification Prevents Deception
Many current frauds arise when users rely on partial or misleading UPI IDs.
- Fraudsters often use names that resemble trusted brands or individuals.
- Now, users will see the real name of the recipient, drastically reducing cases of impersonation.
Expert Viewpoint on Fraud Prevention
Rahul Jain of NTT DATA and Mukesh Chand from Economic Laws Practice agree this change is crucial for curbing fraud.
- By making verified names mandatory, fraudsters cannot easily spoof or fake identities.
- It acts as a security layer for every UPI payment, particularly for high-volume or merchant payments.
What Users Should Expect Going Forward
Minimal Disruption, Better Assurance
There may be a short adjustment period for users used to seeing nicknames or brand names.
- Over time, consumers will appreciate the added safety this update provides.
- Users will still have the freedom to pay anyone, but with greater clarity and reduced risk.
Trusted Digital Payments Ecosystem
The move enhances the credibility of India’s UPI infrastructure, which is already a global leader in real-time payments.
- With fraud cases likely to decrease, adoption of UPI by first-time users and senior citizens could also grow.
- This change aligns with NPCI’s larger vision to make digital payments more secure, standardized, and scalable.
Final Thoughts
By enforcing bank-verified name displays on all UPI apps, NPCI is taking a major step toward building a more secure and transparent digital payment environment. The measure will minimize UPI-related fraud, improve user confidence, and ensure that every rupee sent reaches the intended and verified recipient.
