To enhance the security and efficiency of UPI transactions, the National Payments Corporation of India (NPCI) has issued directives to popular UPI apps such as Google Pay, Paytm, PhonePe, and Bharat Pay to deactivate dormant UPI accounts. Starting from December 31, all companies are expected to initiate the closure of accounts that have been inactive for one year or more.
The decision to deactivate inactive UPI accounts comes as a proactive measure by NPCI to bolster the security of UPI transactions amidst growing concerns about privacy breaches and fraudulent activities in the UPI space. NPCI aims to ensure that UPI users can experience safer and more secure digital transactions.
Effective January 1, 2024, users who have not utilized their UPI IDs for transactions in the past year will find their accounts rendered inactive. This initiative is anticipated to impact all users across the spectrum, including those on Google Pay, Paytm, PhonePe, and Bharat Pay. The move is in line with NPCI’s commitment to maintaining the integrity of the UPI ecosystem.
NPCI has expressed optimism that this measure will contribute to making UPI transactions more secure and efficient. By weeding out dormant accounts, the organization aims to streamline the UPI landscape and reduce the risk of unauthorized transactions. This move is particularly timely, given the recent reports of security concerns associated with UPI transactions.
Additionally, NPCI has announced that it will scrutinize and verify the UPI IDs of inactive users, along with the associated mobile numbers linked to bank accounts. This additional verification step is designed to add an extra layer of security, ensuring that transactions are legitimate and minimizing the potential for fraudulent activities.
The NPCI’s decision aligns with broader industry efforts to create a more robust and secure digital payments environment. As digital transactions become an integral part of everyday life, the need for stringent security measures becomes paramount. Users are encouraged to remain vigilant and take proactive steps to verify their UPI accounts to avoid any service disruption.
The NPCI’s move to deactivate inactive UPI accounts is a strategic step toward fortifying the security of digital transactions. Users are advised to stay informed about these changes and take necessary actions to ensure the continued smooth functioning of their UPI accounts. As the deadline approaches, users must engage with their UPI apps and verify their accounts to avoid any inconvenience in the new year.