Important Update: UPI Transactions Could Be Affected if Your Bank Account is Linked to an Inactive Mobile Number – Here’s What You Need to Know

KKN Gurugram Desk | If you use UPI-based apps like Google Pay, PhonePe, Paytm, or any other similar platforms, a crucial update is coming your way. From April 1, 2025, the National Payments Corporation of India (NPCI) has enforced new UPI (Unified Payments Interface) regulations, which will primarily impact bank accounts linked to inactive mobile numbers. This change aims to enhance the security of UPI transactions and prevent potential cyber fraud. In this article, we will discuss the reasons behind this new rule, its implications, and the steps you need to take to ensure that your UPI transactions remain unaffected.

What Are the New UPI Rules?

In response to the rising concerns of cyber fraud and technical glitches, the NPCI has introduced new guidelines for UPI transactions. One of the key aspects of the update is the removal of inactive mobile numbers linked to bank accounts. These steps are aimed at reducing the risks associated with UPI fraud and improving the overall security of digital payments in India.

Here’s an overview of the new UPI guidelines:

• Removal of Inactive Numbers: Mobile numbers that have been inactive for an extended period will be removed from bank accounts.

• Telecom Operator Responsibility: If these inactive numbers are reassigned to another person by telecom operators, it can increase the risk of UPI fraud.

• Bank and UPI App Compliance: Every bank and UPI app must ensure that old or inactive mobile numbers are removed from the banking system to prevent fraudulent activities.

Why is Your Mobile Number Important for UPI Transactions?

In the world of UPI, your linked mobile number is not just a point of contact—it serves as your identity for UPI payments. Here’s how it works:

• Payment Verification: When you make a payment via UPI, your linked mobile number is used to verify the transaction.

• Risk with Inactive Numbers: If your number is inactive or has been reassigned to another user, your payment may end up in the wrong account. This increases the risk of payment failures or, worse, cyber fraud.

In essence, your mobile number is critical for authenticating UPI transactions and ensuring that your payments reach the correct recipient.

What Happens if Your Mobile Number Is Inactive?

If your mobile number has been inactive for a prolonged period or has been deactivated, you may face issues with UPI transactions after April 1, 2025. To avoid any disruptions in your digital payments, it is essential to take immediate action and ensure your mobile number is active and linked properly to your bank account.

What Should You Do If Your Mobile Number is Inactive?

To ensure that your UPI transactions remain unaffected and secure, follow these steps if your mobile number has been inactive:

1. Check Mobile Number Status with Telecom Operators:
   Contact your telecom provider (Jio, Airtel, Vi, BSNL, etc.) to confirm whether your mobile number is still active or not. If the number has been inactive for a while, get it reactivated or request a new number.

2. Update Your Mobile Number with Your Bank:
   If your old number is no longer active or has been replaced, visit your bank and update your mobile number in their records. Banks are required to follow NPCI guidelines and will update inactive numbers on a weekly basis.

3. Update Your Number in UPI Apps:
   After updating your number with the bank, make sure to also update it on your UPI apps, such as Google Pay, PhonePe, Paytm, and others. This ensures that your transactions continue smoothly and your payments are authenticated without issues.

4. Ensure Regular Recharge of Your Mobile Number:
   Regularly recharging your mobile number will prevent it from becoming inactive. It’s essential to keep your number active to avoid any disruption in your UPI services.

Why Is This Change Important?

The primary objective behind this change is to prevent fraud and improve the overall security of digital payments. Here’s why this new UPI rule is necessary:

1. Preventing UPI Fraud:
   Cyber criminals often exploit inactive or recycled mobile numbers to gain unauthorized access to UPI accounts. By de-linking inactive numbers, the chances of such fraudulent activities can be significantly reduced.

2. Ensuring Secure Transactions:
   Since UPI payments are often used for personal, business, and even government transactions, maintaining the integrity and security of the process is crucial. By linking active and verified numbers to bank accounts, the chances of incorrect transactions are minimized.

3. Regulation of Mobile Numbers:
   Telecom companies sometimes reassign old mobile numbers to new users, which can lead to complications in UPI transactions if the old number is still linked to someone else’s bank account. NPCI’s new rule helps in managing this risk effectively.

4. Compliance with Regulatory Standards:
   With the increase in digital payment volumes and the rise of UPI as a mainstream payment method, it becomes imperative to have a regulatory framework that ensures all linked mobile numbers are in use and active. The NPCI guidelines provide a clear pathway for achieving this.

Impact of the New UPI Rules

The new rules will not only enhance the security of UPI transactions but also ensure that users have an up-to-date and accurate record of their linked mobile numbers. Here’s how this change will impact different stakeholders:

1. For Users:
   The onus is now on the users to ensure that their mobile numbers remain active and correctly linked to their bank accounts. While this change aims to enhance security, it requires proactive effort from users to ensure that their payment systems remain operational.

2. For Banks and UPI Apps:
   Banks and UPI app providers must integrate these changes and update their systems to ensure compliance with the NPCI guidelines. They will need to regularly monitor and remove inactive mobile numbers to prevent potential fraud.

3. For Telecom Providers:
   Telecom companies will be responsible for notifying users when their numbers have been inactive for an extended period and advising them to either reactivate or update their details with their bank.

What Are the Risks of Not Updating Your Mobile Number?

Failure to update your mobile number can result in a variety of issues:

• Failed Transactions: If your mobile number is inactive, UPI payments may fail due to verification issues.

• Cybersecurity Risks: An inactive mobile number that is reassigned to someone else could potentially lead to fraud and unauthorized transactions.

• Loss of Access to UPI Services: If your mobile number is found to be inactive, you may lose access to UPI services until the issue is resolved.

The NPCI’s new UPI rule, which requires users to ensure that their mobile numbers are active and correctly linked to their bank accounts, aims to enhance the security and efficiency of UPI transactions. By removing inactive numbers, the system will minimize the risk of fraud and ensure that your digital payments are safe and accurate. If you haven’t already, take action now to update your mobile number with your bank and UPI apps before the new rules come into full effect on April 1, 2025.

By staying proactive and ensuring that your contact details are up to date, you can continue to enjoy seamless and secure UPI transactions without interruptions.