Starting April 1, the Unified Payments Interface (UPI) will no longer work with mobile numbers that have been inactive for a long time. This decision is a significant step by the National Payments Corporation of India (NPCI) to enhance user safety and reduce cyber fraud.
Banks and payment service providers have been directed to identify and delink such dormant numbers from their systems. These are numbers that have either not been used for a while or have been reassigned by telecom operators to new users after being deactivated. The risk of fraud increases in such cases as old bank account details may still be linked to these recycled mobile numbers.
Pull Transaction Feature Under Review
In a second significant move, NPCI will also do away with or limit the pull transaction facility on UPI apps like Google Pay, PhonePe, and Paytm. This facility allows customers to receive payment requests, which cheats have exploited to get individuals to send money.
While the exact timeline for this change is yet to be announced, NPCI is reportedly in talks with banks to develop a concrete strategy. Sources say the measure is still in the early stages of discussion and will be rolled out only after thorough planning.
How UPI Users Will Be Affected?
If a mobile number linked to a bank account is not used for an extended period, it will automatically be deleted from UPI systems. Customers will receive an alert message before closing the service. In case of inaction, UPI service for the number will be suspended even after the warning.
This is especially true for customers who might have changed numbers but did not notify their banks. Such customers are recommended to maintain their bank-related mobile numbers active so that payments are not disrupted.
Why the Change Was Needed
Many cyber fraud incidents involve old or inactive mobile numbers being reassigned without the linked bank data being updated. Fraudsters often exploit this loophole to access sensitive financial information.
By regularly cleaning up inactive numbers, NPCI aims to tighten the security of UPI transactions and reduce unauthorized fund transfers.
Government Push for Digital Payments
The government has been actively working to promote digital payments across India, especially in smaller towns and rural areas. In the Union Budget, the Finance Minister had announced a target of 20 billion UPI transactions by FY 2025-26.
Previously, initiatives like zero merchant discount rate (MDR) on RuPay and BHIM-UPI transactions were introduced to encourage usage among retailers. The latest policy by NPCI aligns with this larger push to build a safer and more inclusive digital payments ecosystem.
What’s Next?
Though the new rule will be inconvenient for some users in the short term, it is expected to contribute significantly to instilling confidence in India’s digital payment system. The step by NPCI is being viewed as timely amid rising fears of online money scams.
Users are advised to check whether their mobile number linked to UPI services is active and functional. Those using old or recycled numbers should contact their banks and update their details immediately to avoid service disruption.
Also Read: UPI logs 15,547 cr transactions worth ₹223 lakh cr in 2024
