Why UPI is Not Allowed for Joint Account Holders Despite Mobile Number Registration

Unified Payments Interface (UPI) in India is designed primarily for individual users, allowing each UPI ID to be linked to a single bank account and a single mobile number. However, there are valid reasons why joint account holders may not be able to use UPI even if their mobile numbers are registered with the bank. In this article, we explore the factors behind this limitation and discuss potential solutions.

Account Ownership

UPI is intended for individual transactions, and joint accounts are treated differently in terms of ownership. Each joint account typically has multiple account holders, which complicates the identification of a single user for UPI transactions. This limitation arises because UPI is designed to streamline and simplify banking processes, and managing multiple account holders within a single UPI ID would introduce unnecessary complexity.

Mobile Number Registration

While a mobile number can be registered with a bank account, UPI requires that the mobile number linked to a UPI ID must correspond to the primary account holder. In joint accounts, there can be confusion regarding which account holder has the authority to initiate transactions. This regulation ensures that transactions can be traced back to a single, verifiable user, reducing the risk of unauthorized or fraudulent activity.

Bank Policies

Different banks may have varying policies regarding UPI usage for joint accounts. Some banks might restrict UPI access to only the primary account holder to prevent unauthorized transactions. This policy is in place to ensure security and complete transparency in financial operations. As a result, joint account holders must often create individual UPI IDs to manage their transactions separately.

Regulatory Compliance

UPI transactions must comply with regulatory requirements and risk management protocols. Allowing multiple users to operate a UPI ID for a joint account could increase the risk of fraud or disputes over transactions. Banks are required to maintain stringent safeguards to protect their customers' financial information and transactions. Enforcing a single-user policy for UPI IDs helps maintain these protections and ensures that transactions can be traced back accurately.

User Experience

UPI is designed for quick and easy transactions, and having a single user associated with each UPI ID simplifies the user experience. Allowing multiple users could complicate transaction histories and accountability. This design ensures that each transaction can be easily tracked and managed, reducing the likelihood of errors or disputes. For joint account holders, creating individual accounts or exploring specific UPI options for joint accounts could provide a more seamless experience.

It is important to note that individual experiences may vary. Some joint account holders, such as the individual using BHIM on a joint account with their wife, have managed to use UPI without issues. Similarly, their daughter successfully uses Google Pay on a joint HDFC account. These examples suggest that although there are general restrictions, specific circumstances and bank policies may allow for exceptions.

If joint account holders wish to use UPI, they should consider creating individual accounts or checking with their bank for specific options regarding UPI services for joint accounts. Banks can provide guidance and assistance to help joint account holders navigate these limitations and find the best solution for their needs.

Conclusion

While UPI is primarily designed for individual users, the reasons behind restricting its use for joint account holders are rooted in ownership, mobile number registration, bank policies, regulatory compliance, and user experience. By understanding these factors, joint account holders can identify the best course of action to meet their financial needs while adhering to these limitations.

References

For further information on UPI and joint account limitations, consult the official UPI website or contact your bank's customer service. Understanding the specific policies and regulations can help joint account holders find the best solutions for their financial management.