What happens if your UPI account remains inactive for over a year?

UPI is an instant, real-time payment system that intermediates your account and the recipient. Formerly called the Unified Payment Interface, it is a game changer for India. Since its launch in 2016, it has transformed how people send and receive money, pay bills, and shop online. This addition to people’s daily lives has made a huge contribution, as it is a convenient and secure payment medium.

However, as observed from the records, some users have created their UPI ID but do not use UPI for payment. Using UPI regularly offers numerous benefits, such as reduced dependence on cash, rewards and cashback opportunities, and a cashless economy. But yesterday, the government set a deadline for people who haven’t used UPI for over a year to have their UPI disabled. Those users are looking for what to do next, so here we help you.

What You Need to Know About the Deactivation of Inactive UPI

Last year, the National Payment Corporation of India (NPCI) implemented a policy to deactivate UPI accounts that last used over a year ago. They have given a deadline of December 31, 2023, for this. NPCI will implement this to prevent fraud, promote resource efficiency, and reduce confusion. Now that the date has passed and we welcome a new year, many people want to know how to activate their UPI after such a deadline. So, below, we will explain everything from the basics to what “deactivate” means.

Implications of deactivation

The deadline has passed, and now UPI users who have not received or sent any money for over a year cannot use UPI. Their UPI accounts are now deactivated. Not only that, but they also need help to receive money; their outbound transactions will be frozen, and since their accounts are delinked from UPI, it will be a challenge to see their balance in their bank account. These consequences are for general users, but the deactivation significantly impacts specific segments.

Specifically, freelancers, frequent online shoppers, and regular bill payers will face major inconveniences. Their previous experience receiving money or paying bills in seconds will now be a task. Meanwhile, UPI made life easier by facilitating such transactions, and if their UPI gets deactivated, it’s obvious that they will find everything challenging. As a result, after the deadline has passed, they are looking for any way to activate their UPI. Let’s discuss it in the next section.

Actionable Steps for Users

In the last section, you learned about the difficulties you may face if your UPI is deactivated. But don’t worry; reactivating your UPI even after the deadline is much easier than ordering a chai. The policy is implemented so UPI users initiate at least one transaction within a year. In such a scenario, you can reactivate your UPI by transaction.

However, at present, this method seems impossible. Instead, we have another solution. You can take advantage of the reactivation prompts in your respective UPI app. So, without further delay, let’s look at the steps below to revive your UPI ID.

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1. Open the UPI app.
2. Look for the reactivation prompt and tap on it.
3. Now, either make a payment to your friend or pay a utility bill.
4. After that, enter your UPI PIN and verify your mobile number.
5. Next, re-link your bank account (if necessary).
6. Following this, enter the OTP to validate the process.
7. That’s it; you are ready to use UPI again.

Tips for secure and responsible UPI transactions

As you know, NPCI implemented the UPI deactivation policy to prevent fraud related to UPI transactions. This means that UPI users need to know how to keep their accounts protected. Along with explaining the procedure to revive a deactivated UPI, we share some tips for secure and responsible UPI transactions. So, let’s have a look at them.

• Avoid using predictable numbers as your UPI transaction PIN.
• Download your UPI app only from the official website.
• Keep your phone’s operating system and UPI app updated.
• Be aware of frequent phishing activities to stay protected.
• Ensure that you avoid making impulse purchases.
• Set transaction limits within your UPI app.
• Don’t save your PIN anywhere on your phone.

Final Thoughts

In conclusion, the recent policy shift signaling UPI account deactivation after a year of inactivity underscores the importance of sustained engagement with digital financial platforms. Users are urged to remain vigilant, ensuring regular transactions to safeguard the accessibility of their UPI accounts. This proactive approach aligns with security measures and contributes to the seamless functioning of the digital payment ecosystem. Stay informed, stay active—ensuring the longevity of your UPI account is a simple yet crucial step in navigating the evolving landscape of digital finance.

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