NPCI's New Move: No More UPI Misuse with Inactive Numbers!:

NPCI's New Move: No More UPI Misuse with Inactive Numbers! If your UPI ID is linked to a mobile number you no longer use, removing it has not been easy. But now, things are changing! Soon, you’ll be able to unlink your old mobile number from your UPI ID, even if you do not have that number anymore. Before March 31, 2025, all UPI banks and payment service providers (PSPs) must update their databases to remove or update recycled mobile numbers. According to the current NPCI circular from March 2025, it aims to prevent errors and reduce the risk of misuse caused by numbers. This will not be a one-time update. According to the circular, NPCI has instructed banks and UPI apps to update their mobile number databases at least once a week. This will help identify and remove recycled or inactive numbers more frequently. What are recycled or deactivated numbers? As per the guidelines issued by the Department of Telecommunications (DoT), if a mobile number is disconnected, it can be given to a new user after 90 days (or 3 months). Usually, if a person does not make calls, send messages, or use mobile data for 3 months, the telecom company deactivates that number. Mobile operators transfer old mobile numbers to new subscribers after some time. These are referred to as recycled or churned numbers. But most users do not update their mobile numbers on various platforms, like bank accounts or UPI IDs, even after their number changes. This often happens because they do not use certain services regularly or simply forget to update their details. What impact will this notification have? As per the circular, UPI apps must now get clear permission from users before linking or transferring their UPI number. By default, users will not be opted in, they will need to manually choose to allow it. Earlier, this consent was not clearly required, but now it will be mandatory. Additionally, banks and payment service providers (PSPs) will regularly update their databases to ensure UPI IDs are correctly linked to the right mobile numbers. This will help prevent transactions from being sent to the wrong person and improve user security. Users cannot be requested to give their consent prior to or during a UPI transaction. Moreover, any communication regarding association or updating of their mobile number with UPI should not contain misleading or threatening content, like informing them that they will not receive payments if they do not act accordingly.