NPCI issues addendum to Circular NPCI/UPI/OC-141/2021-22 related to safeguarding users on UPI

The National Payments Corporation of India (“NPCI”) has issued addendum to previous circulars NPCI/UPI/OC-141/2021-22 which deals with Safeguarding users on UPI

Background:

NPCI had earlier issued NPCI/UPI/OC-141/2021-22 and NPCI/UPI/OC-141A/2022-23 to keep product level controls for safeguarding UPI users. To further extend the scope for providing a safe and secure experience to the UPI users, the following changes are being introduced.

1. Acquirers onboarding merchants who are dealing with the purchase and sale of digital goods like gold, silver, and other precious metals and payment mode is through UPI should process it under the MCC 5412. For this MCC, UPI collect request (initiation mode 00 with sub type ‘collect’) will not be allowed from 10th November 2022 for android users.
2. Members are also instructed to refer to NPCI/UPI/Rupay/OC 118/2021-22- Reference Guidelines for members on Merchant acquisition standards wherein NPCI has highlighted the key risk responsibilities and accountabilities of the acquiring member banks when managing merchants

All the members are hereby advised to comply the above directives within the timelines. In case of non-compliance, NPCI reserves the right to take necessary regulatory actions on the members.

Source: National Payments Corporation of India