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Corporate Laws Central Ministry of Finance Payment and Settlement Systems Act, 2007

NPCI issues Addendum to NPCI/UPI/2024-25/OC 201-Introduction of lot devices & software on UPI Circle

08-Oct-2025 | NPCI/UPI/OC-201B/2025-26

NPCI has issued Addendum to NPCI/UPI/2024-25/OC 201-Introduction of lot devices & software on UPI Circle with effect from 08th October 2025. Key Highlights: 1. UPI can now be linked to IoT devices (smart watches, glasses, TVs) and software profiles under a Full Delegation framework. Users can delegate payments with defined monthly and per-transaction limits, and all transactions require explicit user action. 2. General Guidelines for Members - Members must follow RBI rules for turnaround time and customer compensation, provide Online Dispute Resolution (ODR), and reconcile transactions as per UPI standards using the new purpose code BH. Only NPCI-approved devices/software and domestic P2M transactions are allowed. Devices must be linked in close proximity, and monthly/transaction limits and inactive-device auto-revocation must be enforced. 3. Primary UPI App Responsibilities - Primary UPI Apps must display device/software details, capture user consent with 2-Factor Authentication, manage limits, delinking, and transaction history, and allow up to 5 IoT devices/software per user. 4. Secondary PSP Banks and Apps Responsibilities - Secondary PSPs must onboard devices/software after due diligence and security checks, register users with verified mobile numbers, capture device/user IDs, allow only paid software profiles, and ensure each user delegates from one Primary UPI App only. They must also maintain data and payment security and allow devices without dedicated apps to tie up with multiple secondary UPI Apps without exclusivity. 5. Issuer Banks must validate device ID/user ID and authorization details before debiting any account. The feature will initially be available to limited users, with full rollout after validations. All members are required to strictly follow these guidelines for linking, transactions, and security under the IoT UPI Circle. For more information, please refer to the attached document.

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