By deactivating UPI IDs that have been inactive for more than a year, NPCI aims to address the concern of unintended money transfers. This can occur when customers change their mobile numbers without updating their UPI IDs, leading to the possibility of someone else receiving funds intended for the previous user of the UPI ID.
New Delhi: The National Payments Corporation (NPCI) has recently issued a directive to payment apps regarding the deactivation of UPI IDs that have been inactive for over a year as of December 31. This measure has been implemented to prevent unintended money transfers in cases where customers change their mobile numbers without disassociating their old numbers from the banking system, as per a report covered by the Hindustan Times.
The move by NPCI is a proactive step towards enhancing the security and integrity of the Unified Payments Interface (UPI) ecosystem. The easy to use UPI has gained significant popularity in recent years as a convenient and efficient mode of digital payments. With the increasing adoption of UPI, it is crucial to ensure that the system remains secure and free from any potential risks.
TRAI’s Directive Regarding Unintended Money Transfers
TRAI has come out with a new rule allowing phone companies in India to hand over old, deactivated numbers to new users after three months of disuse. But there’s a catch: you could end up with some unexpected transfers if you don’t update your new number with your bank. So, people who provide third-party apps and payment services have been given until the end of 2023 to make sure they’re on top of things.
Purpose Behind Deactivation Of UPI IDs
By deactivating UPI IDs that have been inactive for more than a year, NPCI aims to address the concern of unintended money transfers. This can occur when customers change their mobile numbers without updating their UPI IDs, leading to the possibility of someone else receiving funds intended for the previous user of the UPI ID.
Advise To Customers
Customers are advised to regularly update their UPI IDs and ensure that their mobile numbers are associated with the correct UPI ID. This will help prevent any unauthorized access to their accounts and minimize the risk of unintended money transfers. Payment app providers are also encouraged to educate their users about the importance of keeping their UPI IDs up to date and the potential risks associated with inactive UPI IDs.
What Do UPI Users Need To Do?
If you’re using any UPI apps like Google Pay, PhonePe, Paytm, and so on, it’s really important to make sure your ID hasn’t been sitting idle for over a year. Also, double-check all the phone numbers linked to your UPI IDs and confirm they haven’t been unused for more than three months.