Starting April 1, 2025, the National Payments Corporation of India (NPCI) will implement new guidelines mandating the deactivation of Unified Payments Interface (UPI) services linked to inactive mobile numbers. This initiative aims to enhance transaction security and mitigate fraud risks associated with recycled or reassigned mobile numbers.
Rationale Behind the Initiative
In the digital payments ecosystem, a user’s mobile number serves as a critical identifier for UPI transactions. When a mobile number remains unused for an extended period, telecom operators may deactivate and eventually reassign it to new subscribers. If such numbers are still linked to existing UPI IDs, it poses significant security risks, including unauthorized access to financial information and potential fraudulent transactions. To address these concerns, NPCI has directed banks and payment service providers (PSPs) to regularly update their databases to reflect the current status of mobile numbers. Sakshi Post+1India Today+1India Today+1The Indian Express+1The Economic Times+1India Today+1
Key Directives from NPCI
According to the circular issued by NPCI on March 3, 2025, the following measures are to be implemented:
- Regular Database Updates: Banks and PSPs are required to utilize the Mobile Number Revocation List (MNRL) or Digital Intelligence Platform (DIP) to refresh their records at least once a week. This practice ensures that any recycled or churned mobile numbers are promptly identified and unlinked from UPI IDs, thereby reducing errors and enhancing security.
- Explicit User Consent: UPI applications must obtain clear and explicit consent from users before linking or updating a mobile number to a UPI ID. This measure empowers users with greater control over their financial accounts and minimizes the risk of unauthorized access.
Implications for Users
Users who have linked their UPI IDs to mobile numbers that have become inactive or have been reassigned are at risk of losing access to UPI services. To prevent any disruption, users should:
- Verify Linked Mobile Numbers: Ensure that the mobile number associated with your UPI ID is active and in use. If you have changed your number, promptly update it with your bank and UPI service provider.
- Maintain Active Mobile Numbers: Regularly use your registered mobile number to prevent it from being classified as inactive. This practice helps in maintaining uninterrupted access to UPI services.
Preventing Unauthorized Transactions
The deactivation of UPI services linked to inactive mobile numbers is a proactive step toward preventing unauthorized transactions. Inactive or reassigned numbers can lead to technical glitches, such as failed transactions or incorrect fund transfers. By ensuring that only active numbers are linked to UPI IDs, the NPCI aims to enhance the security and efficiency of digital payments.
Guidelines for Banks and PSPs
In compliance with NPCI’s directives, banks and PSPs are to:
- Identify Inactive UPI IDs: Detect UPI IDs and associated mobile numbers that have not been used for any financial or non-financial transactions for over a year.
- Disable Inactive UPI IDs: Deactivate these inactive UPI IDs to prevent any inward credit transactions, thereby safeguarding against potential misuse.
- Deregister Inactive Numbers: Remove inactive mobile numbers from the UPI mapper to ensure that outdated numbers do not remain linked to active UPI IDs.
User Responsibilities
To ensure a seamless transition and continued access to UPI services, users are advised to:
- Update Contact Information: Regularly review and update your mobile number and other contact details with your bank and UPI service providers. This practice ensures that all communications and verifications are directed to your current number.
- Monitor Account Activity: Stay vigilant by monitoring your account statements and transaction alerts. Promptly report any suspicious activity to your bank or UPI service provider.
Conclusion
The NPCI’s initiative to deactivate UPI services linked to inactive mobile numbers underscores the importance of maintaining up-to-date contact information in the digital payments ecosystem. By adhering to these guidelines, users can contribute to a more secure and efficient UPI infrastructure, minimizing the risks associated with inactive or reassigned mobile numbers.Dnp English+5The Economic Times+5Sakshi Post+5The Indian Express
