SIM Change or eSIM Transfer? Why UPI, OTP & Banking Services Stop for 24 Hours

SIM replaced or shifted to eSIM? Your UPI apps, OTPs, and banking SMS may stop for 24 hours due to anti-fraud security rules.

After a SIM replacement or eSIM transfer, banks and payment platforms temporarily restrict access to UPI services, OTP verification, and mobile banking features for up to 24 hours.

Users changing their SIM cards or shifting to an eSIM might temporarily lose access to banking OTPs, UPI apps, and SMS alerts for nearly 24 hours. While many users often mistake this as a network issue, the restriction is actually a security measure designed to prevent financial fraud and unauthorised access to bank accounts.

 

Why do SMS services stop after a SIM change?

According to TRAI, telecom operators in India are required to block incoming and outgoing SMS services for 24 hours after a SIM replacement, SIM swap, or eSIM transfer. The rule has been introduced under regulations aimed at curbing SIM swap fraud, a growing cybercrime in which fraudsters obtain a duplicate SIM linked to a victim’s mobile number.

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Once scammers gain control of a user’s phone number, they can intercept banking OTPs, access UPI-linked apps, and potentially carry out unauthorised transactions. The temporary SMS suspension is intended to create a security buffer and reduce the risk of immediate financial misuse.

 

Impact on UPI Apps and Online Banking

The restriction directly affects digital payment services that depend on SMS verification. Popular UPI platforms such as Google Pay, PhonePe, and Paytm may stop functioning for 24 hours because these apps use SMS-based authentication to verify the registered mobile number on a device.

Users may also face issues receiving OTPs for online banking transactions, card payments, and fund transfers. SMS alerts for deposits and withdrawals can also remain unavailable until the restriction period ends. However, banks offering alternative authentication methods such as email OTPs or hardware security tokens may continue to provide limited access.

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Rising concerns over SIM swap fraud

Cybersecurity experts have repeatedly warned about the rise of SIM swap scams as digital payments and UPI adoption continue to grow in India. In many reported cases, victims realised something was wrong only after losing mobile network connectivity and noticing suspicious bank transactions.

Online discussions on Reddit also highlight concerns around SMS-based authentication and UPI security. Since users are reporting temporary payment disruptions after SIM replacements and sharing experiences related to fraudulent activity.

 

What should users do?

One should avoid changing SIM cards or moving to eSIMs during urgent banking periods. If a SIM change is necessary, users should wait for the 24-hour restriction to end before attempting UPI registration or high-value banking transactions.