Safeguarding Your UPI ID: NPCI's Move to Enhance Security

In a bid to fortify the security of digital transactions, the National Payments Corporation of India (NPCI) has issued a directive to disable inactive UPI IDs by December 31, 2023. This move is part of an ongoing effort to prevent potential fraud associated with outdated or unused UPI IDs.

1. NPCI's Security Initiative: NPCI has directed third-party app providers (TPAPs) and payment service providers (PSPs) to identify UPI IDs inactive for over a year. This proactive measure aims to enhance the security of digital transactions and mitigate potential risks associated with dormant accounts.

2. Identification of Inactive UPI IDs: The guidelines mandate TPAPs and PSPs to identify UPI IDs linked to phone numbers that have not been used for payments or non-financial transactions in the past 12 months. Such identified inactive UPI IDs will be disabled for receiving funds, and the associated mobile numbers will be delinked from the UPI mapping system.

3. TRAI Regulations Influence: This move is influenced by TRAI regulations allowing telecom providers to reassign inactive mobile numbers to new users after 90 days of inactivity. The risk of funds being transferred to unintended recipients arises if users do not unlink their UPI ID from an old number before getting a new SIM card.

4. Proactive Measures for Users: To avoid potential issues, NPCI advises UPI app users to review all mobile numbers linked to their IDs. Users should ensure none have been inactive for over three months. Customers with disabled UPI IDs will need to re-register through their UPI apps to restore the linkage.

5. Compliance Deadline: Payment apps, including Google Pay, PhonePe, and Paytm, have until December 31 to comply with the directive and disable all UPI IDs inactive for a year. This aligns with NPCI's broader goal of creating a reliable and secure digital payments ecosystem.

In conclusion, as NPCI takes this decisive step to disable inactive UPI IDs, users must proactively manage their linked mobile numbers to avoid any potential disruptions in their digital payment experience. The initiative reflects NPCI's commitment to building a robust and secure environment for digital transactions.