If you transact through Unified Payment Interface (UPI) and your mobile number linked to the bank has been inactive for a long time, then activate it immediately. Otherwise, you may face problems in making payments. Because, a new rule related to UPI payment service is going to be implemented from April 1.
New UPI Payment Rule: Inactive Numbers to be Removed
In this, mobile numbers linked to bank accounts which have not been active for a long time or which have been reactivated after being closed will be removed from the UPI system. This change will affect those users whose bank account has an old or closed number linked to it. The National Payment Corporation of India (NPCI), the organization that regulates UPI, has instructed banks and payment service providers to delink such mobile numbers. At the same time, NPCI may also close the pull transaction feature soon.
Prevention of Cyber Fraud
NPCI has taken this decision to prevent cyber fraud and unauthorized transactions. Many times, after the mobile number is closed, telecom companies allot it to some other user. In such a situation, the risk of fraud on bank accounts linked to the old number increases.
For this reason, NPCI has instructed banks and UPI apps like Google Pay, PhonePe or Paytm to identify inactive mobile numbers every week and remove them from their system. This means that if your number is not active for a long time, it may be automatically removed from the bank’s records.
Users will be sent an alert message to stop UPI service. If a mobile number remains inactive despite the warning, it will be removed from the UPI system.
NPCI’s Plan to Limit or Remove Pull Transactions
Cases of fraud are increasing due to pull transactions through UPI. In such a situation, NPCI is preparing to set a limit on the pull transaction feature in payment apps or remove it. According to the report, NPCI is making a plan in collaboration with banks. How to stop pool transactions or end them. However, this plan is still in its initial stage. No official information has been revealed yet as to when and how it will be implemented.
What is a Pull Transaction?
Whenever a merchant or person sends a request to make a payment on your UPI app, it is called a ‘pull transaction’. The amount to be paid is already included in it. The user just has to enter his PIN number on his UPI app. In this, a notification comes on the payment app, on clicking which you see a transaction pop-up with the amount. When you click on it and enter the pin, the amount goes to the account of the person who sent the request.
At the same time, when a user transfers an amount through UPI by scanning a QR code or by directly entering a mobile number, it is called a ‘push transaction’. In such a transaction, the customer himself feeds the amount to be paid in his UPI app.
The Government’s Push for Digital Payments
The government is working to promote digital payments. The Union Minister said that the government’s target is to complete 20,000 crore transactions in the financial year 2025-26. Along with this, UPI has to be promoted in small towns and villages.
Previously, the merchant discount rate on RuPay debit cards and BHIM-UPI transactions was zero. Now, this new incentive scheme will encourage shopkeepers to accept UPI payments. He said, ‘UPI payment is an easy, safe and fast payment service for shopkeepers. Also, the money comes directly into the bank account without any extra charge.’
The Role of NPCI and UPI in India’s Digital Transformation
In India, the Reserve Bank of India (RBI) operates RTGS and NEFT payment systems, while National Payments Corporation of India (NPCI) oversees systems such as IMPS, Rupay and UPI. From January 1, 2020, a zero-charged framework for UPI transactions was applied to adopt widely and encourage the use of digital payments.
