Winning Bizness Desk
Mumbai. If you use Unified Payments Interface (UPI) for transactions and your bank-linked mobile number has been inactive for a long time, you need to activate it immediately. From April 1, a new rule will come into effect, which will remove inactive numbers from the UPI system, potentially affecting your ability to make payments.
Inactive Mobile Numbers to Be Delinked from UPI
Under the new regulation, bank accounts linked to long-inactive mobile numbers or reactivated numbers will be removed from the UPI system. This change will impact users whose bank accounts are linked to old or deactivated mobile numbers.
The National Payments Corporation of India (NPCI), which regulates UPI, has instructed banks and payment service providers to delink such numbers. Additionally, NPCI is also considering removing the "Pull Transaction" feature to prevent fraudulent activities.
Step Taken to Prevent Cyber Fraud
NPCI has introduced this measure to curb cyber fraud and unauthorized transactions. When a mobile number is deactivated, telecom companies may reassign it to a new user, increasing the risk of fraud if the old bank-linked number remains active.
To prevent this, NPCI has directed banks and UPI apps like Google Pay, PhonePe, and Paytm to regularly identify inactive mobile numbers and remove them from their systems. If your number remains inactive for an extended period, it may automatically be removed from your bank records.
Users Will Receive Alert Messages Before Deactivation
Before deactivating a UPI service, users will receive an alert message. If they do not reactivate their mobile number despite the warning, it will be removed from the UPI system.
NPCI May Remove the Pull Transaction Feature
Fraud cases related to UPI pull transactions have been increasing. To counter this, NPCI is planning to either limit or completely remove the pull transaction feature from payment apps. According to an NDTV report, NPCI is working with banks to devise a strategy for regulating or eliminating pull transactions. However, the plan is still in its initial stages, and no official confirmation has been provided regarding its implementation timeline.
What is a Pull Transaction?
A pull transaction occurs when a merchant or individual sends a payment request to a UPI user. The transaction amount is pre-defined, and the user only needs to enter their UPI PIN to complete the payment.
In such cases, a notification appears on the UPI app, and clicking on it displays the transaction details. When the user enters their PIN, the requested amount is transferred to the recipient’s account.
On the other hand, a "Push Transaction" is when a user manually scans a QR code or enters a mobile number to send money. In push transactions, the user inputs the payment amount themselves.
India Aims for 20 Billion UPI Transactions
The Indian government is actively promoting digital payments. According to a central minister, the goal is to achieve 20 billion UPI transactions in the financial year 2025-26 while expanding UPI adoption in small towns and rural areas.
Earlier, the Merchant Discount Rate (MDR) on RuPay debit cards and BHIM-UPI transactions was set to zero. Now, a new incentive scheme is being introduced to encourage merchants to accept UPI payments. The minister stated, "UPI is an easy, secure, and fast payment service for merchants, with direct bank transfers at zero extra cost."
NPCI Operates UPI in India
In India, the Reserve Bank of India (RBI) operates the RTGS and NEFT payment systems, while the NPCI manages systems like IMPS, RuPay, and UPI. On January 1, 2020, the government made a zero-charge framework mandatory for UPI transactions.
How Does UPI Work?
To use UPI, you need to create a Virtual Payment Address (VPA) and link it to your bank account. This eliminates the need to remember your account number, bank name, or IFSC code. Payments can be processed simply by using the registered mobile number.
If you have the recipient’s UPI ID (email ID, mobile number, or Aadhaar number), you can transfer money instantly using a smartphone. UPI can also be used for utility bill payments, online shopping, and other transactions without the need for net banking, credit cards, or debit cards.
1. UPI Deactivation Rule (Effective April 1, 2025)
- 🚫 Inactive numbers will be removed from the UPI system
- 🔄 Reactivate old numbers to continue UPI transactions
- ⚠️ Users will receive alert messages before deactivation
2. Difference Between Pull and Push Transactions
Pull Transaction: Merchant/individual sends a payment request → User enters UPI PIN → Amount is deducted.
Push Transaction: User manually enters recipient details and amount → Confirms payment by entering UPI PIN.
3. India’s UPI Growth Target
- 🎯 20 Billion Transactions in 2025-26
- 🏦 More adoption in rural areas
- 💰 Zero merchant discount rate to promote UPI usage
