The NPCI has stated that it hopes that this action will increase the security of UPI transactions.
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A faction of people will soon be unable to make UPI payments through third party apps like Google Pay, PhonePe and PayTM very soon. National Payments Corporation of India (NPCI) has directed banks and third party apps to stop the UPI services for accounts that have remained inactive for more than a year. This means that if you have not used UPI for transactions for over a year, your UPI account will be frozen and you will not be able to use it. This will take place from December 31, 2023. By guaranteeing that only those UPI IDs that are regularly used continue to be active, the change seeks to optimize and streamline UPI ID usage. The instruction is a proactive measure to improve the UPI ecosystem’s security and efficiency.
The NPCI has stated that it hopes that this action will increase the security of UPI transactions. In addition, a lot of incorrect transactions will be prevented. All applications and banks will henceforth validate the UPI ID and linked mobile number of inactive consumers, in accordance with the directives issued by the NPCI. The UPI ID will be closed if there is neither a credit nor a debit in a year.
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This action is being taken since there have been several complaints of incorrect transactions reportedly received by NPCI. People frequently change their mobile number but forget to update the UPI ID that goes with it, which is one major contributing factor to this. This number is given to someone else, and the UPI is still active there. Money sent to that number in this scenario will be received by the person who now possesses it. Many such cases have been reported due to why NPCI is now taking this step.
