UPI Changes Coming: The Unified Payments Interface (UPI), India’s most widely used digital payment system, is set to undergo major updates. The National Payments Corporation of India (NPCI) has introduced new regulations that users must follow to avoid disruptions in their UPI services. Failure to comply could result in temporary or permanent deactivation of your account. Here’s a detailed breakdown of what you need to know to stay compliant and keep your UPI access uninterrupted.
Why Are UPI Rules Changing?
UPI has experienced massive growth in recent years, becoming the preferred mode of digital transactions for millions. However, with this expansion comes the need for stronger security measures and better regulation. The NPCI’s new guidelines aim to reduce inactive accounts, prevent misuse, and improve the overall efficiency of the UPI network. These changes will affect all users, making it essential to stay informed and take necessary actions to maintain seamless access.
UPI Inactivity Deactivation Rule – What It Means
Under the updated rules, UPI IDs that remain inactive for 12 months or more will be automatically deactivated. This measure is designed to clear out dormant accounts and enhance system security. Previously, there was no strict policy regarding inactive UPI IDs, but now, users must ensure they conduct at least one transaction within a year to keep their accounts active.
Key Changes:
- Old Rule: No clear inactivity threshold.
- New Rule (2025): Accounts inactive for 12 months will be deactivated.
- Reactivation: Requires fresh authentication, including KYC and mobile number verification.
- Notifications: Users will receive alerts 30 days before deactivation.
Here’s a comprehensive information table summarizing the key aspects of the new UPI rules:
UPI Rule Changes 2025 – Complete Information Table
| Category | Old Rule | New Rule (2025) | User Action Required |
|---|---|---|---|
| Inactivity Policy | No clear deactivation rule | UPI IDs inactive for 12+ months will be deactivated | Perform at least 1 transaction/year (send/receive even ₹1) |
| Deactivation Process | Rarely enforced | Automatic deactivation after 1 year + 30-day prior notice (SMS/email/app alert) | Check notifications regularly |
| Reactivation | Not applicable | Requires fresh KYC + mobile verification; may take up to 7 days | Contact bank/UPI provider if deactivated |
| KYC Compliance | Lax enforcement | Strict KYC updates required; banks may freeze accounts if outdated | Ensure Aadhaar/PAN linked to bank account |
| App Updates | Optional | Mandatory app updates for security (older versions may lose UPI access) | Update UPI apps (Google Pay/PhonePe/etc.) via Play Store/App Store |
| Autopay Impacts | No disruption | Failed payments if UPI ID deactivated (EMIs, OTT subscriptions, bills) | Switch to alternate payment method temporarily during reactivation |
| Fraud Prevention | Basic checks | Enhanced AI monitoring for suspicious transactions | Never share UPI PIN; report phishing attempts |
| Provider Compliance | Varies by bank/app | All providers (Google Pay, PhonePe, Paytm, etc.) must enforce rules uniformly | Check app notifications for provider-specific alerts |
| Dormant Account Cleanup | No policy | Inactive IDs purged quarterly to reduce system clutter | Use UPI at least twice yearly to stay active |
| Cross-Bank Transfers | Allowed without restrictions | Additional verification for large transfers (>₹1 lakh) | Confirm mobile OTP/biometric for high-value transactions |
Penalties for Non-Compliance
| Violation | Consequence |
|---|---|
| 12+ months inactivity | UPI ID deactivated; mandates reactivation via KYC |
| Outdated KYC | Bank may freeze UPI access until documents updated |
| Using outdated UPI app | Transaction failures or login blocked |
| Unverified mobile number | OTP delivery issues; reactivation delays |
UPI Provider-Specific Deadlines
| App/Bank | Inactivity Alerts Started | Deactivation Enforcement Begins | Reactivation Method |
|---|---|---|---|
| Google Pay | March 2025 | June 2025 | In-app KYC + bank verification |
| PhonePe | April 2025 | July 2025 | Video KYC + OTP |
| Paytm | January 2025 | May 2025 | Branch visit or online Aadhaar e-KYC |
| BHIM | February 2025 | June 2025 | Biometric authentication |
| WhatsApp Pay | May 2025 | August 2025 | Linked bank’s net banking portal |
How to Keep Your UPI Account Active
To prevent your UPI ID from being deactivated, follow these best practices:
- Perform Regular Transactions – Conduct at least one transaction (sending or receiving money) every six months.
- Update Your UPI App – Always download updates from official sources to avoid security risks.
- Verify Mobile Number & KYC – Ensure your linked mobile number is active and your KYC documents are up to date.
- Monitor Notifications – Check for alerts from your UPI provider regarding inactivity or required actions.
- Review Linked Accounts – Periodically confirm that your bank accounts are correctly linked to avoid transaction failures.
By following these steps, you can ensure uninterrupted access to your UPI services.
What Happens if Your UPI ID Is Deactivated?
If your UPI ID is deactivated due to inactivity, the following consequences may arise:
- You will not be able to send or receive money using that UPI ID.
- Automatic payments (such as subscriptions, EMIs, or bill payments) linked to the deactivated ID will fail.
- Some UPI-linked apps or wallets may display errors or log you out.
- Reactivation will require full KYC verification, and in some cases, you may need to create a new UPI ID.
To avoid inconvenience, it’s best to stay proactive and keep your account active.
Banks and Apps Implementing the New UPI Rules
All major UPI service providers, including Google Pay, PhonePe, Paytm, BHIM, WhatsApp Pay, and Amazon Pay, are required to enforce these new guidelines. Banks such as SBI, HDFC, ICICI, and Axis are also mandated to comply.
Actions Taken by UPI Providers:
- Google Pay & PhonePe are sending inactivity warnings via email, SMS, and app notifications.
- Paytm & BHIM are prompting users to update KYC and complete verification.
- WhatsApp Pay has been slower in sending alerts, so users should be extra cautious.
How These Rules Benefit UPI Users
While the new regulations may seem restrictive, they serve crucial purposes:
- Enhanced Security – Reducing dormant accounts minimizes fraud risks.
- Smoother Transactions – Active user participation ensures a more efficient payment system.
- Global Compliance – Aligns UPI with international digital payment standards.
By staying informed and adhering to these guidelines, users can enjoy a safer and more reliable UPI experience.