New Delhi: The National Payments Corporation of India (NPCI) has taken a significant step towards enhancing security in digital transactions. In a recent directive, NPCI has instructed payment apps to deactivate UPI IDs that have remained inactive for over a year, effective from December 31. This measure aims to prevent unintended money transfers, particularly when users change their mobile numbers without updating their old numbers in the banking system, according to a report by the Hindustan Times.

The move by NPCI is proactive and seeks to bolster the security and integrity of the Unified Payments Interface (UPI) ecosystem. The UPI platform has seen a surge in popularity as a convenient digital payment mode. However, ensuring the system's security is crucial with its increasing usage.

TRAI's Rule on Avoiding Unintended Transfers:TRAI (Telecom Regulatory Authority of India) introduced a rule allowing telecom companies to reassign old, deactivated numbers to new users after three months of disuse. But here's the caveat: individuals might encounter unexpected transfers if they fail to update their new number with the bank. Providers of third-party apps and payment services have been given until the close of 2023 to ensure compliance with this rule.

Reasoning Behind UPI ID Deactivation: NPCI's decision to deactivate inactive UPI IDs older than a year aims to tackle the issue of unintended money transfers. This situation arises when users alter their mobile numbers without updating their UPI IDs, potentially leading to funds being received by someone else unintendedly.

Advice for Users: Users are strongly advised to routinely update their UPI IDs and verify that their mobile numbers correspond correctly with their UPI IDs. This practice helps thwart unauthorized access to their accounts and minimizes the chances of unintended money transfers. Payment app providers are urged to educate their users on the significance of keeping their UPI IDs updated and the risks associated with inactive IDs.

What UPI Users Should Do: For individuals using UPI apps like Google Pay, PhonePe, Paytm, etc., it's crucial to ensure their IDs have not remained inactive for over a year. Additionally, verifying all phone numbers linked to UPI IDs and confirming their usage within the last three months is strongly recommended.

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