Following this announcement, the company introduced new guidelines in order to increase interoperability and client experience for UPI number-based payments. The new rules are expected to be effective from April 1, 2025, and are set to be followed by UPI member banks, UPI apps, and third-party app providers (TPAPs).
According to instructions from the National Payments Corporation of India, banks, financial institutions, and Payment Service Provider (PSP) applications will be required to utilise the Mobile Number Revocation List/Digital Intelligence Platform (MNRL/DIP) and refresh their databases at least once a week. This process aims to reduce transaction errors resulting from outdated or reassigned mobile numbers.
With the new UPI guidelines set to take effect on April 1, 2025, UPI IDs linked to dormant mobile numbers are expected to be deactivated. If the mobile number registered with the bank has been inactive for an extended period, the associated UPI ID will be unlinked, resulting in the unavailability of UPI services.
In addition, clients are expected to ensure that the mobile numbers registered with their banks are active and current. Inactive or reassigned mobile numbers can lead to a suspension of UPI services connected to them, so the process of keeping bank records updated with the correct mobile number will maintain uninterrupted access to UPI services.
Disconnected mobile numbers can be reassigned to new subscribers after a period of 90 days, as outlined by the Department of Telecommunications (DoT). Usually, if a customer does not make calls, send texts, or use data on their mobile number for three months, the telecom service provider will deactivate the number. These disconnected numbers may have been reassigned to new subscribers as well, a procedure that develops what are known as recycled or churned numbers.
At the same time, NPCI has also begun to phase out the `Collect Payments` functionality from UPI in order to combat rising fraud incidents. This pull-payment system is going to be restricted to large, verified merchants only, while person-to-person (P2P) collection payments will be capped at 2.000.
Included in the three types of mobile users that will have to reconsigure their UPI service are those who are still updating their bank accounts after having shifted their mobile numbers, those who have surrendered their mobile SIMs, but are yet to update their bank accounts, as well as those retaining a cancelled, surrendered, or recycled mobile number that is still attached to UPI.
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