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Business News/ Money / Personal Finance/  Attention UPI ID holders! Govt has this important message for you

Attention UPI ID holders! Govt has this important message for you

NPCI issued guidelines for deactivating UPI IDs, UPI numbers, and phone numbers of inactive customers

UPI has emerged as the most preferred digital payment method, (Mint)Premium
UPI has emerged as the most preferred digital payment method, (Mint)

The National Payments Corporation of India (NPCI) issued the guidelines on November 7, 2023, regarding the deactivation of Unified Payments Interface (UPI) IDs, UPI numbers, and phone numbers of Customers who have not performed any financial or non-financial transactions (balance inquiry, PIN change, etc.) for one year from any Third Party Application Providers (TPAPs) or PSP applications.

“In the realm of digital payments, it is essential for customers to regularly review and verify their information within the banking system to ensure a safe and secure transactional experience. However, it has come to our attention that customers may change to a new mobile number without disassociating their previous number from the banking system," NPCI said in its guidelines.

What does deactivation of UPI ID mean?

According to Mehul Mistry, Global Head - Strategy, Digital Financial Services & Partnerships, Wibmo, a PayU company, de-activation means that inactive customer's UPI IDs or UPI numbers will be disabled for inward credit transactions.

“The guideline is aimed at ensuring security, reliability, preventing inadvertent transfers of funds to unintended recipients, and safeguarding the interests of UPI users," said Mehul Mistry. 

The deadline to deactivate UPI IDs of inactive customers is December 31, 2023.

NPCI new guidelines for UPI ID holders

1)All TPAPs and PSP banks shall identify UPI IDs and associated UPI numbers and phone numbers of customers who have not performed any financial (debit or credit) or non-financial transactions for at least a year from the UPI Apps.

2) UPI IDs and UPI Numbers of such customers shall be disabled for inward credit transactions. 

3) Further to this, PSPs shall deregister the same phone number from the UPI mapper as well.

4) Customers with inward credit block UPI IDs and phone numbers shall re-register in their respective UPI apps for UPI mapper linkage. 

5)Customers can make payments, and non-financial transactions using UPI PIN as needed.

6) UPI apps shall perform Requester Validation (ReqValAd) before initiating 'pay-to-contact'/'pay to the mobile number'.

7) UPI Apps shall show the customer name that has been fetched before initiating the transaction and shall not display the name which has been stored/cached at the apps end.

UPI has emerged as the most preferred digital payment method, owing to its exceptional blend of security, reliability, and seamless transactional experience. Over 11 billion transactions worth 17.16 lakh crore via Unified Payments Interface (UPI) took place in October. 

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Sangeeta Ojha
A business media enthusiast. Writes on personal finance, business and banking.
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Published: 17 Nov 2023, 02:39 PM IST
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