In a significant development, the National Payments Corporation of India (NPCI) has issued new guidelines that will impact the status of inactive UPI IDs.
This directive applies to all banks and third-party apps, including popular platforms like PhonePe and Google Pay.
The NPCI has mandated the closure of UPI IDs that have remained inactive for the last one year, with a deadline set for December 31, 2023.
Deadline for UPI ID Activation:
The NPCI’s latest directive requires users to take prompt action if their UPI ID has been dormant for an extended period.
Users with inactive UPI IDs are urged to initiate transactions and activate their IDs before the looming deadline of December 31, 2023.
Failure to do so may result in the automatic closure of the UPI ID.
Notification Process for Deactivation:
Users contemplating deactivating their UPI ID should be aware that banks will issue notifications through email or messages before the deactivation process begins.
This preemptive notification system ensures that users are informed about the status of their UPI IDs before any action is taken.
Enhanced Security Measures:
The new rules introduced by NPCI are aimed at bolstering the security of UPI transactions.
The verification process involves cross-referencing UPI IDs and associated mobile numbers, particularly for customers with inactive accounts.
If a UPI ID remains devoid of credit or debit transactions for a year, it will be subject to automatic suspension starting January 1, 2024.
Preventing Wrong Transactions:
NPCI’s proactive approach is designed to curtail instances of wrong transactions, addressing the common scenario where individuals change their contact numbers but forget to deactivate their accounts.
This measure is crucial in mitigating the risks associated with inadvertent or unauthorized transactions, safeguarding users from potential financial threats.
As the deadline approaches, users are advised to check and activate their dormant UPI IDs to ensure uninterrupted access to this widely-used payment platform.
The new guidelines by NPCI signify a commitment to reinforcing the security and integrity of UPI transactions in the evolving digital landscape.
