• Source:JND
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Online UPI apps are a convenient way to make payments if you run out of cash but have a remaining balance in your bank account. The process is facilitated via a linked UPI ID and an online payments app. The National Payments Corporation (NPCI), in a recent directive, has asked payment apps such as PhonePe, Google Pay, Paytm and more to deactivate UPI IDs that remain inactive for over one year as of December 31, 2023.

The aim is to stop unintentional fund transfers if customers have changed phone numbers without delinking the contact from the banking infrastructure, reported Business Today. As per Telecom Regulatory Authority of India (TRAI) guidelines, telcos can issue deactivated numbers to new subscribers after the expiration of the 90-day period.

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This can lead to unintended monetary exchanges if the mobile number (linked with the bank) has not been updated by the old user. Hence, Third Party App Providers (TPAP) and Payment Service Providers (PSP) will have to take due action on the matter by December 31, 2023.

The inactive ID and number of these accounts will be deregistered for inward credit transactions and from the UPI mapper database.(Image:Unsplash)

What You Should Do?

If you use any UPI app, check for unused IDs (one year and over) linked to your bank account. Ensure they are active, and cross-check the linked phone numbers with your bank accounts. Make sure your number has not been inactive for over three months.

According to the report, the NPCI notifications directs TPAPs and PSP banks to track UPI IDs, linked UPI numbers and mobile numbers of users who have not engaged in financial or non-financial transactions since a year of operation via the UPI app.

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The ID and number of these accounts will be deregistered for inward credit transactions and from the UPI mapper database. To enable such transactions, users must re-register on the app and link the UPI account. These users can continue to make payments and engage in non-financial transactions via the UPI PIN whenever required.