NPCI regulates the use of virtual IDs for UPI transactions to enhance security and user trust. Virtual IDs, like phone numbers or email-based identifiers make transactions easier. But, they also pose risks if misused. By setting guidelines, NPCI confirms these IDs are protected against unauthorized access phishing, and fraud. Proper regulation also standardizes usage across banks and payment platforms.
This regulation is important in a growing digital payment ecosystem where user safety comes first. NPCI’s framework helps mitigate risks and focusing on innovation. By addressing these challenges, NPCI builds user confidence and ultimately, encourages broader adoption of UPI for various financial needs.
