If you transact with Unified Payment Interface (UPI) and your mobile number linked to the bank is inactive for a long time, then activate it immediately. Otherwise, you may face problems in making payments. Because, from April 1, a new rule related to UPI payment service is going to be implemented. In this, mobile numbers linked to bank accounts, which are not active for a long time or which have been reactivated after being closed. They will be removed from the UPI system. This change will affect those users, whose bank account has an old or closed number linked. National Payment Corporation of India (NPCI), the organization regulating 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.
Decision taken to prevent 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 another 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, Phone Pay 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.
Alert message will be sent before discontinuing the service
Users will be sent an alert message to discontinue UPI service. If a mobile number remains inactive despite the warning, it will be removed from the UPI system.
NPCI may remove pull transaction feature
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 of NDTV, NPCI is making a plan with banks on how to stop or end the pull transaction. However, this plan is still in the 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 sending the request. At the same time, when the user transfers the amount through UPI by scanning the QR code or by directly entering the 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.
Target of 20,000 crore transactions
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 to small towns and villages. Earlier, the merchant discount rate on RuPay debit card and BHIM-UPI transactions was made zero. Now, with this new incentive scheme, shopkeepers will be promoted to take UPI payments. He said that, ‘UPI payment is an easy, safe and fast payment service for shopkeepers. Also, money comes directly to the bank account without any extra charge.’
UPI is operated by NCPI
RBI has the operation of RTGS and NEFT payment systems in India. National Payment Corporation of India (NPCI) operates systems like IMPS, RuPay, UPI. The government had made a zero-charge framework mandatory for UPI transactions from January 1, 2020.
How does UPI work?
For UPI service, you have to create a virtual payment address. After this, it has to be linked to the bank account. After this, there is no need to remember your bank account number, bank name or IFSC code etc. The payer simply processes the payment request according to your mobile number. If you have his UPI ID (e-mail ID, mobile number or Aadhaar number), then you can easily send money through your smartphone. Not only money but also net banking, credit or debit card will not be required for utility bill payment, online shopping, shopping etc. You can do all these tasks through the Unified Payment Interface system.
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