NPCI Bars UPI Payments From April 1 From These Numbers

Individuals utilising UPI with inactive mobile numbers linked with their Unified Payments Interface (UPI) accounts will not be able to make transactions through payment apps including Google Pay, PhonePe, and Paytm, from April 1.

The National Payments Corporation of India (NPCI) instructed banks and payment service providers to omit UPI IDs linked with mobile numbers that have been inactive for a long period.

Why Is NPCI Implementing This Change?

This is an attempt made by NPCI to improve security and prevent potential fraud. When UPI users change or deactivate their mobile numbers, they often fail to unlink them from their UPI accounts. 

These numbers are usually reassigned to new users by telecom operators, and the risk of unauthorised transactions also follows. To curb such security threats, banks and payment platforms have been instructed to regularly update their records and remove inactive UPI IDs.

Who Is Going To Be Impacted?

Users who face UPI service discontinuations include: 

Users who transferred their mobile numbers but have not updated them with their respective banks

Users who have deactivated their mobile numbers without unlinking them from UPI accounts

Someone’s mobile numbers that have remained inactive for calls, SMS, or other telecom services for a long period

UPI users whose mobile numbers have been reassigned to a different user

How to Ensure UPI Services Remain Active

Here is what can an individual do to avoid disruptions in UPI payments

Ensuring that the mobile number linked to their bank account is active

It is advisable to update with the new number if the original number has been deactivated or changed with the bank account

Individuals with inactive mobile numbers should reactivate before April 1 in order to avoid being omitted from the UPI network

What Will Banks Do?

Banks will monitor UPI IDs are regularly tracked and deactivated by banks and payment service providers under NPCI’s mandate. Banks, however, will alert customers with inactive numbers before terminating UPI access. To avoid fraudulent transactions, UPI IDs should be terminated from the users who failed to update their information despite these warnings.

Implications for Digital Payment Users

This is supposed to improve digital payment security in India. NPCI anticipates this UPI-based move to minimise the risks associated with cyber fraud by linking only active mobile numbers. It is recommended for individual relying on UPI for daily transactions to verify their mobile numbers and update their information to maintain seamless digital payments.

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