The National Payments Corporation of India (NPCI) is set to implement a significant new rule for UPI (Unified Payments Interface) transactions, effective from 31st December. This move is a stride towards enhancing the security and reliability of digital payments in India. Here are the key highlights and implications of this new development.
New UPI Rule: A Step Towards Safer Transactions
Implementation Date The new rule will come into effect nationwide from 31st December, starting at midnight.
Key Change From 1st January, any UPI ID that has been inactive for over a year will be deactivated. Consequently, no transactions can be conducted using these inactive UPI IDs.
Reason Behind the Change
- Enhancing Security The primary objective of this new rule is to safeguard users against unintentional payments and potential fraud. Many users change their mobile numbers without updating them with their banks. This oversight can lead to fraudsters misusing these numbers linked to bank accounts for unauthorized transactions.
- Regulatory Compliance The Indian Telecom Regulatory Authority allows telecom companies to reallocate mobile numbers that have been inactive for 90 days to new users. If the old number remains linked to a bank account, the new owner of the number could potentially access and transfer funds.
The Implications for UPI Users
- Awareness and Vigilance UPI users need to be aware of this change and ensure that their UPI IDs are active, especially if they haven’t used them in a while.
- Updating Contact Information It’s crucial for users to keep their mobile numbers updated with their banks to prevent potential misuse.
- Regular Review of Bank Statements Regularly reviewing bank statements can help in early detection of any unauthorized transactions.
NPCI’s new rule for UPI transactions is a proactive measure to tighten security and prevent financial frauds in digital transactions. By deactivating UPI IDs that have been inactive for a year, the risk of unauthorized transactions is significantly reduced. Users are encouraged to keep their contact information updated with their banks and stay vigilant about their transaction activities. This development reflects NPCI’s commitment to making digital payments safer and more reliable for millions of users across India.
