The National Payments Corporation of India (NPCI), the non-profit organization that looks after digital retail payments in India, has directed third-party Unified Payments Interface (UPI) apps to deactivate specific UPI IDs. The organization has decided this due to the rise in abandoned UPI IDs no longer in use. Here’s everything you need to know about the NPCI’s latest guideline.
Google Pay, PhonePe, And Others Have To Comply Soon
Third-party UPI apps, such as Google Pay, PhonePe, Paytm, etc., will deactivate UPI IDs inactive for a year. All PSP and TRAPs banks have been directed to identify unused UPI IDs and the associated phone numbers that haven’t performed any financial or non-financial transactions for a year. The identified UPI IDs won’t be able to receive money from other users. Further PSPs have also been guided to deregister such phone numbers from UPI.
What To Do If Your UPI ID Gets Deactivated?
Customers who wish to reactivate their UPI ID will have to re-register in the third-party UPI apps of their choice. Further, the apps must perform validation before initiating any contact-based transaction to display the customer’s name instead of the display name registered with the app.
The Decision Will Reduce Inadverent Transactions
In the official circular, NPCI mentions that customers might change their mobile number without delinking the previous number from UPI services and other banking systems. This, in turn, could lead to several issues. Since telecom providers can issue a used number to another user after 90 days of inactivity, the number might get into the hands of bad actors, who could exploit the connected services for unethical gains.
PSPs and TRAPs To Comply By December 31, 2023
The new directive would mean that users won’t be able to transfer money into someone’s inactive UPI ID, even by mistake. Second, it will also prevent bad actors from pretending to be the user and gaining access to sensitive information, as the companies will deregister such phone numbers and linked UPI IDs by December 31, 2023.