India’s digital payment ecosystem is set for a major change as the National Payments Corporation of India (NPCI) has announced that UPI services linked to inactive mobile numbers will be discontinued from April 1, 2025. This move aims to enhance security and prevent fraudulent transactions linked to reassigned mobile numbers.
Why Is This Happening?
When users change their mobile numbers, old numbers are often reassigned to new customers. If UPI accounts remain linked to these numbers, there is a risk of unauthorised transactions. To prevent misuse, NPCI has mandated banks and payment service providers (PSPs) to periodically check and deactivate UPI IDs linked to inactive or reassigned mobile numbers.
How Will It Affect Users?
- If a mobile number has not been used for UPI transactions for a long period, its associated UPI ID will be deactivated.
- Users changing their mobile numbers must update their UPI-linked bank details to avoid service disruption.
- Major payment apps like PhonePe, Google Pay, and Paytm will follow NPCI’s guidelines to unlink old numbers.
What Should Users Do?
To ensure uninterrupted UPI access, users should:
- Check if their current mobile number is updated with their bank.
- Link their new mobile number to their bank account before March 31.
- Regularly use UPI services to keep their accounts active.
Banks and payment apps have begun notifying customers about the update. Failure to update mobile numbers in time could lead to payment failures and account access issues.
