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New UPI Rules from April 1: Inactive Numbers to Lose Access

Prime Highlights:

  • Banks and Payment System Providers (PSPs) must freeze UPI IDs of dormant or reassigned mobile numbers from April 1, 2025.
  • Users need to maintain their mobile numbers registered with banks so that UPI services are not interrupted.

Key Background:

For enhancing safety and preventing errors in transactions, the National Payments Corporation of India (NPCI) has issued fresh guidelines for UPI transactions. The guidelines make it mandatory for banks and PSPs to update their databases periodically to de-activate UPI IDs of inactive or re-issued phone numbers. The guidelines will be implemented from April 1, 2025.

The Department of Telecommunications (DoT) allows telecom operators to re-sell unused mobile numbers after 90 days. If a re-sold mobile number is linked to an active existing UPI ID, the latter poses risks such as unauthorized transfers and lost payments. To reduce this, NPCI requires use of banks and PSPs with a centralized Mobile Number Revocation List (MNRL) or Digital Intelligence Platform (DIP) which will authenticate and update UPI-linked mobile numbers at least weekly.

Customers are asked to have their bank-registered mobile number on and be able to receive SMS alerts and able to confirm transactions made via UPI through the use of One-Time Passwords (OTPs). In the event that the registered number is turned off or the number is changed without prior notice in the bank, customers may experience disruption in their digital transactions.

For ease, the customers can update their mobile numbers through net banking, ATM, or by visiting their respective banks. The updation is crucial to the hassle-free access to UPI and safe transactions.

This NPCI initiative manifests the significance of having users’ banking details latest to prevent fraudulent use and online payment technical malfunction. By updating their mobile number, the customers are thus made to enjoy seamless and secure access to UPI.