GPay, Paytm, PhonePe, BharatPe users beware, THESE accounts may stop working due to...

In a significant update for UPI users, the National Payments Corporation of India (NPCI) has announced that all UPI IDs that have remained inactive for over a year will be rendered invalid starting January 1, 2025. This change will impact all UPI applications, such as Google Pay, Paytm, PhonePe, BharatPe, and Amazon Pay, among others. Users are advised to take note of this development before the deadline of December 31, 2024.

The NPCI's decision to deactivate inactive UPI IDs stems from the issue of users failing to update the phone numbers linked to their bank accounts and UPI IDs when switching service providers. Additionally, according to TRAI regulations, telecom operators are permitted to reassign any inactive numbers to new subscribers after a period of 90 days.

To mitigate the risk of new subscribers potentially accessing former users' bank accounts through UPI, the NPCI has mandated that all UPI IDs inactive for over a year be deactivated. This concern arises because the inactive number may still be linked to the previous user's bank account, allowing unauthorized access.

According to a circular from the NPCI, Third Party Application Providers (TPAPs) and Payment Service Providers (PSPs) have been instructed to identify UPI IDs, associated UPI numbers, and linked phone numbers of customers who have not conducted any financial or non-financial transactions via UPI apps for a period of 12 months.

The NPCI has instructed UPI providers to block inward credit transactions on inactive UPI IDs and UPI numbers, as well as to deregister them from the UPI Mapper. To reactivate inward credit transactions, customers will need to re-register with their UPI app and link their UPI ID to their registered mobile number.

A Third Party Application Provider (TPAP) is a service entity that collaborates with banks and payment service providers (PSPs) to enable UPI-based transactions. TPAPs offer UPI-compliant applications, including mobile wallets, merchant applications, and various platforms that utilize UPI for payment processing.