The National Payments Corporation of India (NPCI) has announced a directive to deactivate inactive Unified Payments Interface (UPI) IDs for users of popular apps like Google Pay, PhonePe, Paytm, and BHIM starting December 31, aiming to enhance the security of digital transactions and protect users’ interests in the evolving digital payment landscape.
The crux of the issue lies in the policy regarding mobile number deactivation. According to the Telecom Regulatory Authority of India (TRAI), telecom companies are permitted to reassign deactivated mobile numbers to new subscribers after a 90-day period. This policy poses a significant risk of unintended money transfers, especially if the original user of the number fails to update the mobile number linked to their bank account. Recognizing this risk, NPCI’s directive aims to mitigate potential financial mishaps that could arise from such scenarios.
The Role of Payment Service Providers
Under NPCI’s new rule, Third-Party App Providers (TPAP) and Payment Service Providers (PSP) are mandated to take decisive action by the end of the year. Their responsibility includes identifying UPI IDs, UPI numbers, and associated phone numbers of customers who have not engaged in any financial or non-financial transactions through UPI apps for a year. The identified UPI IDs and numbers will be disabled for receiving funds, and the phone numbers will be deregistered from the UPI mapper. This step is crucial in ensuring that inactive accounts do not become a gateway for unauthorized transactions.
User Responsibility: Ensuring Active UPI IDs
For UPI users, this development calls for a quick check of their accounts. Users of any UPI app need to ensure that their IDs have not been left unused for more than a year. Additionally, it’s vital for users to review all phone numbers linked to their UPI IDs, confirming that none have been inactive for over three months. This simple yet essential step can prevent the inconvenience of having their UPI IDs deactivated.
Reactivating UPI Services: A Simple Process
For users whose UPI IDs and phone numbers have been blocked for inward transactions, reactivating their services is straightforward. They need to re-register in their respective UPI apps to relink their UPI. Importantly, even with deactivated IDs for receiving funds, users can continue making payments and conducting non-financial transactions using their UPI PIN.
