If your UPI (Unified Payments Interface) account on popular apps like Google Pay, PhonePe, or Paytm has been dormant for a year or more, it is slated to be deactivated starting January 1. This move follows the National Payments Corporation of India’s (NPCI) circular issued on November 7, 2023, as a proactive step to address issues arising from inadvertent money transfers due to users changing their mobile numbers without updating their banking information.
The primary concern leading to this decision lies in the potential misuse of UPI accounts tied to phone numbers that have become inactive. In cases where a user changes their phone number without updating the UPI app, the old number might be reassigned to a new user, resulting in the inadvertent transfer of funds.
Understanding the Deactivation Process: Safeguarding Against Misuse
The deactivation process will be executed by third-party application providers (TPAP) and Payment Service Providers (PSP). These entities will identify UPI IDs and associated phone numbers that have been inactive for one year or longer, marking them for deactivation. Subsequently, the UPI IDs and associated phone numbers will be disabled for inward credit transactions, and payment service providers will deregister these numbers from the UPI mapper.
All UPI apps, including Google Pay, Paytm, and PhonePe, are mandated to implement these measures by December 31, 2023. While this may inconvenience users with dormant UPI accounts, the initiative is aimed at enhancing security and preventing unintended financial transactions.
Reactivation and Enhanced Security Measures
Users facing deactivation can re-register their UPI apps for mapper linkage after the initial deactivation process. This re-registration allows users to resume making payments and non-financial transactions using their UPI PIN as needed. The NPCI’s circular emphasizes that UPI apps will conduct requester validation before initiating transactions, displaying the customer’s name fetched from the system and avoiding the display of cached names stored at the app’s end.
The NPCI has set a deadline for the implementation of these measures by December 31, 2023, ensuring that UPI apps align with the outlined guidelines to enhance security, prevent misuse, and maintain the integrity of the UPI ecosystem.
As users adapt to these changes, the focus on requester validation and enhanced security measures aims to create a more secure and transparent environment for UPI transactions, reflecting the ongoing commitment to safeguarding user interests and financial transactions in the evolving landscape of digital payments in India.
