New UPI Guidelines: Your UPI ID/Number May Diactivate If Fails Latest NPCI Guidelines

The National Payments Corporation of India (NPCI) the creator of successful payment method UPI, has laid out new guidelines making banks and third-party UPI (Unified Payments Interface) apps disable IDs inactive if you won’t meet the latest conditions announced.

NPCI has mandated that all UPI Apps including TPAPs (Third Party Application Providers) and PSP (Payment Service Provider) Banks shall implement the same by 31st Dec'23. This directive is applicable to all relevant stakeholders for appropriate actions.

“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 mentioned in the latest notification. 

Deactivation refers to disabling inward credit functionality for unused UPI IDs and linked phone numbers. The deadline for this automated culling is December 31, 2023.

Banks and app providers must separate associated phone numbers and UPI IDs that have no financial or non-financial transactions in the past calendar year.

The guidelines apply to all major UPI apps like Google Pay, PhonePe, Paytm, BHIM and Amazon Pay among others.

In its circular, NPCI directed that, in order to prevent the inadvertent transfer of funds to unintended recipients and safeguard the interests of UPI users, the following guidelines are being issued to the UPI 

ecosystem:

• 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 a time period of 1 year from the UPI Apps.
• UPI IDs and UPI Numbers of such customers shall be disabled for inward credit transactions. Further to this, PSPs shall deregister the same phone number from UPI mapper as well.
• Customers with inward credit block UPI IDs and phone numbers shall re-register in their respective UPI apps for UPI mapper linkage. Customers can make payments, non-financial transactions using UPI Pin as needed.
• UPI apps shall perform Requester Validation (ReqValAd) before initiating 'pay-to-contact'/'pay to mobile number'. UPI Apps shall show the customer name which has been fetched before initiating the transaction and shall not display the name which has been stored/cached at the apps end.

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