NPCI directs deactivation of inactive UPI IDs by year-end

The National Payments Corporation of India (NPCI) has issued a directive for banks and payment applications to deactivate all Unified Payments Interface (UPI) IDs and numbers that have remained inactive for over a year by the end of this year. Inactive accounts pose potential security and reliability threats, especially when customers change phone numbers without disassociating the previous number from their bank accounts, as noted by NPCI. This move aims to enhance the overall security and transactional experience within the UPI ecosystem.

According to NPCI, accounts with no financial activities for a year or more are being considered inactive. This proactive measure by the payments corporation seeks to address the challenges arising from customers changing phone numbers without updating their bank account details, ensuring a more seamless and secure UPI environment.

In the context of transactions, UPI applications will now reflect customer names instead of the names stored at the application's end. This adjustment aligns with NPCI's efforts to maintain consistency and accuracy in transactional information. As technology evolves, such regulatory interventions help streamline financial processes and bolster the security infrastructure of digital payment systems.