UPI Privacy Enhancements Aim to Shield Users from Online Threats

The Ministry of Electronics and Information Technology announced a series of privacy enhancements for the Unified Payments Interface, targeting the growing menace of online scams. Central to the reforms is the mandatory masking of the mobile number associated with every UPI ID during a transaction.

According to the new policy, payment apps must truncate the mobile number, revealing only the last four digits to the counterpart. This measure is designed to cut off a common information channel exploited by fraudsters in phishing and vishing attacks.

Implementation responsibilities lie with banks and regulated payment service providers, which have been instructed to integrate the masking feature within their user interfaces before the end of the quarter. Failure to comply could lead to regulatory action, including fines and revocation of operating permissions.

Industry analysts note that while the privacy upgrade strengthens user protection, it may also require merchants to adopt alternative verification methods, such as OTPs sent to registered email IDs or in‑app authentication.

The initiative forms part of a larger strategy to reinforce the security of India’s digital economy, ensuring that rapid growth in electronic transactions does not outpace the safeguards needed to protect consumers.