UPI Fraud Prevention: Pull Transactions May End, Inactive UPI IDs to Be Disabled

NPCI's new security measures to protect UPI users

To curb UPI fraud, the National Payments Corporation of India (NPCI) is planning a major step. Reports suggest that NPCI, in collaboration with banks, is considering limiting or eliminating pull transactions—payment requests sent by merchants to customers. This measure is being deemed essential for customer security, and initial discussions between NPCI and banks are underway.

Fraudulent Use of Pull Transactions

Under the pull transaction feature, merchants can send payment requests to customers, who then approve the request to complete the transaction. This feature is frequently exploited in UPI fraud cases, where scammers impersonate merchants and send fake payment requests. Many users unknowingly approve these fraudulent transactions.

UPI Accounts to Be Deactivated from April 1

Starting April 1, banks will deactivate UPI accounts linked to Google Pay, PhonePe, Paytm, and similar apps if the associated mobile number has been inactive for a long time. A mobile number becomes inactive if not used for 90 days and may then be reassigned to a new user. Since these numbers are linked to bank accounts and other financial services, users may face issues. To keep your UPI ID active, recharge your mobile number immediately.