In a recent development, the National Payments Corporation of India (NPCI) has issued a directive to all banks and third-party apps, signaling the potential closure of inactive UPI IDs by December 31, 2023. As UPI transactions have become integral to various financial activities, users are urged to take necessary steps to ensure the continued operation of their UPI IDs.
The Directive:
NPCI’s directive pertains to UPI IDs that have remained inactive for one year, indicating no transactions during this period. The specified deadline of December 31, 2023, has been set for the closure of such dormant UPI IDs. This move is part of NPCI’s broader strategy to enhance the security of UPI transactions.
Process for Closure:
Individuals holding UPI IDs that have been inactive for one year will receive notifications from their respective banks or third-party apps, such as Google Pay or PhonePe. Notifications will be sent via email or text message, prompting users to take action. Failure to respond or initiate a transaction will result in the automatic closure of the UPI ID.
Ensuring UPI ID Activation:
To prevent the closure of UPI IDs, users need to perform at least one transaction using their UPI ID before the December 31, 2023 deadline. This straightforward action will ensure the continued activation and functionality of the UPI ID.
Mitigating Risks:
The decision to close inactive UPI IDs is aligned with security measures, especially in cases where individuals change their mobile numbers without deactivating associated UPI IDs. This situation poses a risk, as the old mobile number may be reassigned to another person, potentially exposing the UPI ID to unauthorized access. Closing inactive UPI IDs mitigates such risks and reinforces the security of UPI transactions.
