“How NPCI’s Initiative to Remove Inactive Mobile Numbers Enhances UPI Security”

The National Payments Corporation of India (NPCI) has introduced an important initiative to enhance security in the Unified Payments Interface (UPI) ecosystem. As of March 31, 2025, all banks and payment service providers (PSPs) offering UPI services are required to update their databases and remove any inactive or recycled mobile numbers linked to UPI accounts. This move is designed to reduce errors and prevent fraud that may arise from mobile number churn, improving the overall safety of UPI transactions.

Why Is This Important?

UPI has become one of the most popular payment methods in India, facilitating millions of transactions daily. However, with the growing reliance on mobile phones for UPI-linked payments, the issue of inactive or recycled mobile numbers has posed potential risks. Inactive or recycled numbers may lead to errors during transactions, or worse, create opportunities for fraudsters to exploit vulnerable accounts.

To safeguard users and ensure smooth transactions, the NPCI’s directive will help to create a more secure UPI environment by ensuring that only active, verified mobile numbers are associated with UPI accounts.

What Happens When a Mobile Number Becomes Inactive?

A mobile number may become inactive or recycled due to various reasons, such as:

• The user changing their mobile number or switching to a new SIM card
• The number being deactivated by the service provider due to non-payment or other issues
• The number being reassigned to a new user by the mobile operator

In such cases, UPI-linked transactions may fail or be directed to the wrong user if the old number is still associated with an active UPI account.

NPCI’s Steps to Protect You

To address these risks, NPCI has mandated that all banks and PSPs offering UPI services must conduct an audit of their UPI-linked mobile numbers by the set deadline of March 31, 2025. The key measures to be implemented include:

1. Regular Verification of Mobile Numbers: Banks and payment service providers must verify the status of the mobile numbers linked to UPI accounts. If a number is found to be inactive or recycled, it will be removed from the UPI database to prevent any erroneous transactions.

2. SMS Alerts for Inactive Numbers: Customers will receive notifications regarding the de-linking of their inactive mobile numbers from their UPI accounts, ensuring they are informed about any changes.

3. Re-verification of Mobile Numbers: Users may be required to re-verify their mobile numbers linked to UPI accounts if their mobile number is deemed inactive. This will ensure that only the current and active mobile numbers are associated with the UPI ID.

4. Better Fraud Prevention Measures: By removing inactive or recycled numbers, NPCI aims to reduce the risk of fraud where fraudsters may use old numbers to gain access to a user’s UPI-linked bank account.

What Should You Do?

If you have recently changed your mobile number or noticed any irregularities in your UPI-linked account, it is essential to take the following steps:

1. Update Your Mobile Number with the Bank: Ensure that your UPI-linked account is updated with your current and active mobile number. If you have changed your mobile number, notify your bank and update your UPI details.

2. Enable Two-Factor Authentication: Always enable two-factor authentication (2FA) for your UPI account. This adds an extra layer of protection, making it harder for unauthorized users to access your account.

3. Monitor Your UPI Transactions: Regularly check your UPI transaction history for any unauthorized activity. If you spot anything suspicious, report it to your bank immediately.

4. Stay Updated with Bank Notifications: Ensure you are receiving all necessary SMS or email alerts from your bank, as these will keep you informed about any changes made to your UPI account.

Key Takeaways

• The deadline for updating UPI accounts to remove inactive or recycled mobile numbers is March 31, 2025.
• NPCI’s initiative aims to enhance security and prevent fraud caused by mobile number churn.
• Regular verification, alerts, and re-verification will be mandatory to ensure UPI transactions are safe and secure.
• Customers should update their UPI details and monitor transactions to stay protected.

With this move, NPCI is taking proactive steps to secure the UPI ecosystem and ensure that users have a safe, smooth experience when making digital payments. By removing inactive mobile numbers from UPI accounts, the risk of fraud is minimized, and errors during transactions are reduced.

Accounts

Pros:

1. Enhanced Security: By removing inactive and recycled mobile numbers, the initiative minimizes the risks of fraud and identity theft. It ensures that UPI transactions are directed to the correct user.

2. Fewer Transaction Errors: With the removal of outdated mobile numbers, users will face fewer transaction failures or mistakes that could occur when an inactive number is associated with an account.

3. Improved User Confidence: This move reassures users that their UPI accounts are more secure, which is essential as the digital payment ecosystem grows.

4. Simplified Re-verification Process: Banks will prompt users to update their contact information, which ensures that only active and verified mobile numbers are linked to UPI accounts.

5. Minimizing Mobile Number Churn Risks: By removing recycled numbers from UPI systems, NPCI ensures that fraudsters can’t take advantage of reassigned mobile numbers, reducing potential exploitation.

Cons:

1. Inconvenience to Users: If users do not keep their mobile numbers updated with their banks, they might face temporary disruptions in their UPI services until the issue is resolved.

2. Potential Delays in Transaction Processing: The verification process may lead to a brief delay in transactions as banks update their records.

3. Dependence on Mobile Operators: While banks will ensure active numbers are updated, it still relies on the timely deactivation of mobile numbers by telecom service providers, which could lead to occasional issues.

4. Limited Awareness Among Users: Some users may not be aware of the importance of updating their mobile numbers linked to UPI, leading to possible confusion or missed alerts.

5. Additional Verification Requirements: For users with inactive numbers, the re-verification process may be an extra step that some find cumbersome, especially those who may not be as tech-savvy.

Frequently Asked Questions

Q1: What is the deadline for removing inactive mobile numbers linked to UPI accounts?

A1: The deadline for updating and removing inactive mobile numbers linked to UPI accounts is March 31, 2025.

Q2: How can I check if my mobile number is linked to my UPI account?

A2: You can check your UPI-linked mobile number by logging into your UPI-enabled app (like PhonePe, Google Pay, etc.) and reviewing your profile or settings. Alternatively, you can contact your bank for confirmation.

Q3: What will happen if my mobile number is de-linked from my UPI account?

A3: If your mobile number is de-linked due to inactivity, you may face temporary difficulties in performing UPI transactions. You will need to update your mobile number with your bank or payment provider to restore access.

Q4: How do I update my mobile number linked to UPI?

A4: To update your mobile number, contact your bank and request an update to your UPI-linked details. Some banks may allow you to make the change directly via their mobile app or website.

Q5: Will this move prevent all types of fraud in UPI?

A5: While this initiative significantly reduces the risk of fraud related to inactive mobile numbers, it does not eliminate all types of fraud. Users should remain vigilant, enable two-factor authentication, and monitor transactions regularly for any suspicious activity.

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