UPI Users Beware: Inactive Mobile Numbers To Be Deactivated

New Delhi: The National Payments Corporation of India (NPCI) has introduced major changes to its guidelines for numeric UPI ID solutions, set to take effect from April 1. According to information, these updates aimed to strengthen security, improve user experience, and ensure seamless transactions in India's thriving digital payments ecosystem. The officials stated that one of the key aspects of the new guidelines is the deactivation of UPI IDs linked to mobile numbers that have been inactive for an extended period. 

The officials stated that the move is designed to prevent unauthorised transactions and protect users from fraud. According to the Department of Telecommunications (DoT) guidelines, telecom providers can reassign deactivated mobile numbers to new users after a 90-day disconnection period.

Weekly Mobile Number Updates

To prevent issues arising from reassigned numbers, banks and UPI service providers are required to update their mobile number records on a weekly basis. The measure will help ensure that users' correct mobile numbers are mapped to their UPI IDs, reducing transaction errors and security risks.

The new guidelines mandate that applications require explicit consent from users before assigning numeric UPI IDs. Users will be required to opt in manually, as the default setting remains opted out. The officials stated that the provision is designed to safeguard user interests and prevent unauthorised transactions.

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Bank-Verified Mobile Numbers

A user's bank-verified mobile number will serve as the primary identifier for their numeric UPI ID. This measure will help ensure that users' correct mobile numbers are mapped to their UPI IDs, reducing transaction errors and security risks.

Users relying on UPI services must ensure that their registered mobile number remains active. If a number linked to a UPI ID is inactive for a prolonged duration, it will automatically be unlinked, making UPI transactions impossible. Maintaining updated records with the correct mobile number is crucial to avoid disruptions.

Restrictions on Collect Payments

To deter fraud, NPCI is altering the "Collect Payments" feature in UPI transactions. The pull-payment method will be restricted to big merchants who have been verified. For individual consumers, person-to-person collect payment requests will be restricted to Rs 2,000. With the new guidelines the government is intended to avoid abuse of the feature, which has been used by fraudsters to get unsuspecting users to authorise unwanted transactions.

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Deadline For Compliance

All UPI service providers must implement the new guidelines by March 31, to ensure compliance with NPCI regulations. Non-compliance could result in disruptions or penalties. UPI apps and banks will be required to report quarterly to NPCI about how they are handling numeric UPI IDs. 

As per the government officials, the NPCI's new guidelines for numeric UPI IDs mark a big step towards enhancing security and user experience in India's digital payments ecosystem. By deactivating inactive UPI IDs, updating mobile number records, and requiring explicit user consent, NPCI aims to reduce transaction errors and security risks. UPI users must ensure that their registered mobile number remains active and update their records regularly to avoid disruptions in digital transactions.