Tech Desk: In a significant move to bolster user security, the National Payments Corporation of India (NPCI) is set to enforce new rules masking phone numbers on UPI payment apps. This crucial update, driven by India’s Digital Personal Data Protection (DPDP) Act and numerous user complaints, aims to enhance **UPI privacy** by making personal contact details invisible during transactions. UPI apps and banks have been given until September 4 to implement these changes, transforming how millions conduct digital payments daily.

Currently, phone numbers are a primary identifier in UPI transactions, but their visibility poses a substantial privacy risk, exposing users to unwanted contact and potential identity concerns. The new directive from NPCI mandates that platforms hide sensitive customer information, including UPI IDs, mobile numbers, and bank account numbers, making transactions more secure and private. This change directly addresses the growing demand for stronger data protection in the digital payment ecosystem.

Under the upcoming system, alternatives to phone numbers will become standard. For instance, users will be encouraged to create UPI IDs not linked directly to their mobile numbers. For QR code payments, only the last four digits of a user’s mobile number may be visible, or the number might be entirely hidden once the transaction is complete. This shift ensures that while payments remain seamless, user identity is safeguarded, marking a pivotal moment for digital transaction security in India.