NPCI Mandates Deactivation of Inactive UPI IDs and Numbers by End of 2023

Key Takeaways:

1. NPCI has directed all UPI members, including TPSPs, PSPs, and banks, to deactivate inactive UPI IDs and UPI numbers by December 31, 2023.

2. Active UPI IDs and UPI numbers are those that have been used for financial transactions within the past year.

3. The directive aims to prevent inadvertent money transfers to unintended recipients, particularly in cases where customers change their mobile numbers without disassociating their old numbers from the banking system.

4. Specific actions are outlined for TPAPs, PSPs, and banks to identify and deactivate inactive UPI IDs and numbers, as well as implement additional security measures to ensure a safe and secure transactional experience for customers.

The circular issued by the National Payments Corporation of India (NPCI) mandates the deactivation of inactive UPI IDs and UPI numbers by December 31, 2023. This directive applies to all members of the Unified Payments Interface (UPI), including Third Party Service Providers (TPSPs) and banks. The aim is to prevent inadvertent money transfers to unintended recipients, particularly in cases where customers change their mobile numbers without disassociating their old numbers from the banking system.

Here are the key points highlighted in the circular:

1. Definition of Active UPI IDs and UPI Numbers: Active UPI IDs and UPI numbers are those that have been used for financial transactions within the past year.

2. Members Affected: The circular has been issued to all members of UPI, including payment apps such as Google Pay, Paytm, PhonePe, as well as banks.

3. Reason for Deactivation: The decision to deactivate inactive UPI IDs and numbers is to prevent the inadvertent transfer of money to unintended recipients in case customers change their mobile number without disassociating their old number from the banking system.

4. Actions to be Taken by TPAPs, PSPs, and Banks: The circular outlines specific actions to be taken by Third Party App Providers (TPAPs), Payment Service Providers (PSPs), and banks. These actions include identifying inactive UPI IDs and associated UPI numbers, disabling UPI IDs and phone numbers for inward credit transactions, deregistering phone numbers from the UPI mapper, and implementing Requester Validation (ReqValAd) before initiating certain transactions.

5. Enhancing Transactional Security: The initiative aims to ensure a safe and secure transactional experience for customers in the realm of digital payments. Customers are encouraged to regularly review and verify their information within the banking system to maintain a secure transactional experience.

The circular emphasizes the importance of maintaining up-to-date information within the banking system to ensure secure digital transactions.

FAQ:

Q1: What is the deadline set by NPCI for deactivating inactive UPI IDs and numbers?

A1: The deadline set by NPCI for deactivating inactive UPI IDs and numbers is December 31, 2023.

Q2: What defines an active UPI ID and UPI number according to the NPCI directive?

A2: According to the NPCI directive, active UPI IDs and UPI numbers are those that have been used for financial transactions within the past year.

Q3: Why has NPCI issued this directive to deactivate inactive UPI IDs and numbers?

A3: The directive aims to prevent inadvertent money transfers to unintended recipients, particularly in cases where customers change their mobile numbers without disassociating their old numbers from the banking system.