Banks can now reset password, unblock access to UPI as NPCI automates process. Here's how

Banks that are part of unified payment interface ( UPI) functionality tend to lose access to URCS or Unified Real-time Clearing and Settlement if they enter the wrong password three times. In such instances, banks are compelled to reach out to the National Payments Corporation of India (NPCI) to reset the password and unblock the user IDs.

The NPCI — via its circular — has announced that the reset password and unblock user ID process has been automated with three different options, thus minimising such occurrences.

The NPCI also highlighted that around one-fifth of the queries sent to the corporation belong to this category.

The first way to reset the password is by answering the secret question. The second is through an OTP, and the third is via multi-factor authentication.

Options to reset password and unblock user IDs:

1. Answer a secret question

2. OTP

3. MFA: Multi-factor authentication

Notably, NPCI data revealed that UPI transactions spiked to 16.73 billion in December 2024. The number of transactions rose by 8 per cent month-on-month (MoM) to its December level, compared with 15.28 billion transactions in November 2024.

Thanks to UPI, ubiquitous shopkeepers across the country have stopped keeping toffees and candies near cash counters.

Harshad Shah, a chartered accountant, in a social media post, wrote recently, “Before UPI, shopkeepers would trade Toffees for small change, stating shortage of Coins.”

The transition to digital payment means shopkeepers are not required to keep candy or toffee to offer in exchange for coins, affecting the sales of toffees. There are roughly 13 million kirana or small neighbourhood shops countrywide.

Citing the sales drop of major brands like Mondelez, Mars, Nestle, Perfetti, Parle & ITC, Shah said, “People paid the Exact Amount using UPI, with no scope for exchanging small change, ultimately eating up the daily sales of Toffees.”