Google Pay and Paytm are rolling out a new feature that allows users to create custom UPI IDs, thus enhancing the safety of digital payments in India. The previous system, where UPI IDs were primarily connected to mobile numbers, raised privacy concerns. The new feature addresses these issues by allowing users to create their own IDs, shielding their mobile numbers and improving the security of transactions. This is intended to increase user confidence in digital payment systems.
**Highlights of the New Feature:**
In the past, UPI IDs were often linked to mobile numbers, exposing users to possible data breaches by cybercriminals. Custom UPI IDs will conceal a user’s mobile number and offer more secure transactions. This development is intended to strengthen trust in digital payment methods.
**How to Set Up a Custom UPI ID on Paytm:**
* Paytm is making it easy for users to create a custom UPI ID.
* To start, open the Paytm app, go to the profile section, and choose UPI & Payment settings.
* A list of all connected accounts and IDs will be displayed.
* Select the ‘Create a new UPI ID’ option.
* Create a new ID by combining letters and numbers.
* It is also possible to set up a backup UPI ID to protect against payment failures.
**Custom UPI on GPay:**
Google Pay is offering a similar function. This update lets users utilize their own UPI ID in place of their mobile number. This upgrade will enhance privacy and give customers a safer and easier way to transact.
**Updates to UPI Regulations:**
The National Payments Corporation of India (NPCI) is also changing UPI regulations. The P2P Collect Request system will be discontinued on October 1, 2025. This means users will no longer be able to submit or accept Collect Requests through UPI, with only direct transfers being permitted. This modification addresses the misuse of the Collect Request function by fraudsters, who occasionally tricked users into approving requests, resulting in unauthorized deductions.