Do you spend your coffee money and pay your bills using UPI? Well, brace yourself from August 1, 2025. The National Payments Corporation of India (NPCI) has released new policies regarding UPI that may change the way you pay and receive your money, affecting your daily transactions. What Updates Are Being Made Enhanced Fraud Prevention: New payment and banking apps along with the banks will have to implement additional verification methods for greater transaction volumes, new device logins, as well as paychecks, and will reduce the chances of fraud while providing you peace of mind. Deactivation of UPI Ids: UPI Ids and numbers not linking to any transactions for 12 months will be permanently unavailable. Your payment handle will have to be reactivated in case you change your number or stop using your number for over a year during the deactivation phase. Notifications for UPI Inactivity: Users will now receive alerts before their ids become inactive. This will help in minimizing transaction failures and ensure that money does not go to unintended accounts.Finalizing Strategies for Customer Engagement: Look forward to improved alerts from your bank and payment applications about your account usage and security, as well as all important communications and updates.Changes to Daily Transactions ImpactFor those using UPI on a regular basis, these changes will enhance your security. However, if you have not transacted in over a year, your UPI ID may be subject to deactivation—so, stay active! Also, for those who tend to change phone numbers frequently, ensure that you update your UPI records at the earliest to avoid payment complications.Reasons for Introduction of These GuidelinesThe ramp-up is to further secure and strengthen cyber infrastructure in the country that is witnessing rapid growth in the adoption of digital payments. With the rising number of UPI transactions, the NPCI seeks to combat cyber fraud, limit payment failures, and ensure that only vetted and operational accounts are eligible for fund transfers.What Actions Should You Take Currently?Make at least a single UPI transaction once in twelve months so that your ID remains active.Be on the lookout for alerts from your bank or UPI application concerning deactivation.Make sure to change the phone number linked to your account and application when you change phones.For as long as you can steer clear of these directives, your everyday life will stay undisturbed, so be proactive, informed, and secure.
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