Updated December 30th, 2023 at 16:38 IST
UPI New Rules: Act now or lose your UPI account by January
Every user is urged to comply with these rules before January 1, as the NPCI is set to close inactive UPI IDs that haven't seen any transactions in the past
In a bid to fortify UPI transactions against potential risks, the National Payments Corporation of India (NPCI) has introduced stringent guidelines that mandate banks and third-party apps to take immediate action. Every user is urged to comply with these rules before January 1, as the NPCI is set to close inactive UPI IDs that haven't seen any transactions in the past year.
What the New Guidelines Encompass
As per the latest directives from the NPCI, all third-party apps and PSP banks are required to verify both the UPI ID and the associated mobile number of inactive customers. If there has been no credit or debit activity on a particular UPI ID for a period of one year, it is slated for closure. This move is aimed at bolstering the security of UPI transactions and preventing any potential misuse.
Deadline Looms: December 31
Banks and third-party apps, including popular platforms like PhonePe and Google Pay, have been given a deadline until December 31 to identify and flag such dormant UPI IDs. After this cutoff, users will no longer be able to carry out transactions using these inactive IDs. NPCI's initiative is set to enhance the overall security of UPI transactions, providing users with a safer digital payment ecosystem.
Preventing Wrong Transactions
The primary objective of these guidelines is to mitigate the risk of wrong transactions. Instances of funds being transferred to unintended recipients or misused have been on the rise, prompting the NPCI to take proactive measures. By closing inactive UPI IDs, the NPCI aims to eliminate the possibility of transactions going awry and enhance the overall integrity of the UPI system.
Notifications from Banks
Users are advised to be vigilant as banks will send notifications through email or messages before deactivating any UPI ID. This proactive measure ensures that users have ample time to activate their dormant UPI IDs and avoid any inconvenience. NPCI's move is not only about security but also about keeping users informed and allowing them to take necessary actions.
Challenges with Changing Mobile Numbers
One notable challenge arises when users change their mobile numbers and forget to deactivate their UPI IDs associated with the old number. With the number remaining active for an extended period, there's a risk of unauthorized access and potential wrong transactions. The new guidelines aim to address such scenarios, ensuring that only active and verified UPI IDs are in use.
As the clock ticks down to the December 31 deadline, UPI users are strongly advised to check and activate their dormant UPI IDs to avoid any disruption in their digital payment services. NPCI's proactive measures are set to create a more secure and reliable UPI ecosystem, protecting users from potential risks and ensuring the integrity of digital transactions.
Published December 30th, 2023 at 16:36 IST