UPI Linked to Old Number? Here’s the Solution

Swift Summary

• NPCI mandates that all banks and Payment Service Providers (PSPs) update their databases before March 31, 2025, to address issues with recycled or churned mobile numbers linked to UPI IDs.
• Recycled numbers are those reassigned by telecom operators after a dormancy of 90 days.
• Not updating mobile numbers can result in fraud, scams, and security breaches due to identity takeover risks.
• UPI apps must now obtain explicit user consent for seeding/porting UPI numbers with an opt-out feature.
• Regular updates and accurate mapping of mobile numbers will enhance user security and prevent transaction errors.
• Updates should occur at least once a week; though,there are no direct sanctions for non-compliance.

Indian Opinion Analysis

The move by NPCI to update the database of recycled mobile numbers intends to bolster secure financial transactions via UPI. This requirement highlights the increasing importance of data integrity in digital financial systems. By ensuring regular updates and securing explicit user consent on number usages,transaction accuracy is expected to improve while reducing fraudulent activity risks.although there is concern about the lack of direct penalties for non-compliance by PSPs and banks, this initiative could drive voluntary compliance through emphasized regulatory expectations. As digital payment platforms grow more complex in India’s rapidly advancing tech landscape, such measures play a crucial role in maintaining public trust.

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