From April 1, 2025, users with inactive mobile numbers will no longer be able to conduct UPI transactions. The National Payments Corporation of India (NPCI) has introduced new regulations aimed at enhancing digital payment security and preventing fraud.
Key Changes Under the New UPI Rules
1. UPI ID Deactivation for Inactive Numbers
If a mobile number linked to a bank account has been inactive for more than 90 days, its associated UPI ID will be automatically deactivated. As per the Department of Telecommunications (DoT) regulations, mobile numbers that remain unused for calls, messages, or data for 90 days can be reassigned to new users. This move prevents unauthorized access to previous users’ banking details.
2. Mandatory Weekly Updates by Banks and UPI Apps
To prevent incorrect transactions and fraud, NPCI has directed banks and UPI service providers—including Google Pay, PhonePe, and Paytm—to update their users’ mobile number records on a weekly basis.
3. Old UPI IDs Will Not Work for New Users
If a deactivated mobile number is reassigned to a new user, the old UPI ID linked to that number will no longer function, ensuring the new user does not gain access to the previous owner’s banking details.
4. Customer Consent for Numeric UPI IDs
Banks and UPI apps must now obtain explicit consent from customers before enabling numeric UPI IDs. By default, this feature will be turned off, requiring users to manually opt in if they wish to use it.
Why This Change Matters
UPI has become India’s most widely used digital payment system, processing billions of transactions each month. However, inactive numbers pose security risks, including potential unauthorized access to banking information. NPCI’s latest move aims to strengthen UPI’s security framework while ensuring seamless user experiences.
Record Surge in UPI Transactions
In 2024, UPI transactions in India surged by 46% compared to the previous year, reaching 172.2 billion transactions. The implementation of these new rules is part of NPCI’s broader efforts to enhance digital payment security and minimize fraudulent activities.
What Users Should Do
To avoid disruptions in UPI services, users must ensure that their mobile number linked to their bank account remains active. It is also advisable to update mobile number records with the bank periodically to continue enjoying uninterrupted digital payment services.