NPCI, which operates the UPI payment system, has asked UPI apps and banks to mask users' mobile numbers. Banks and payment apps were given until September 4 to implement the change. Only the last four digits of a user's mobile number should be visible.
For QR code payments, the app should not display the payer's or the recipient's mobile number once the payment is completed. UPI apps were also instructed to let users create UPI IDs that are not based on their mobile number. Those identifiers can be used as defaults.
UPI recorded its highest-ever monthly volume in August 2026, processing 24.51 billion transactions worth Rs 29.82 lakh crore. Transaction volumes grew 22 percent from 19.63 billion in August last year. Existing users keep their mobile-linked UPI IDs, so the move to username-based identifiers is likely to be gradual.