New UPI payment regulations have officially come into force starting today. Rolled out by the National Payments Corporation of India (NPCI), these changes are designed to streamline digital payment processes across platforms such as Google Pay, PhonePe, Paytm, and others. The goal is to enhance the overall efficiency of UPI transactions and ease the burden on backend infrastructure, particularly during high-traffic periods. Although the changes might appear subtle, they are likely to influence how users handle their routine payments on a day-to-day basis.
UPI New Rules From 1 August 2025 What Are The Changes ?
Why In News
- New UPI payment regulations have officially come into force starting today. Rolled out by the National Payments Corporation of India (NPCI), these changes are designed to streamline digital payment processes across platforms such as Google Pay, PhonePe, Paytm, and others. The goal is to enhance the overall efficiency of UPI transactions and ease the burden on backend infrastructure, particularly during high-traffic periods. Although the changes might appear subtle, they are likely to influence how users handle their routine payments on a day-to-day basis.
UPI Transaction Status Updates:
- A major change focuses on transaction status updates—UPI apps are now required to notify users within seconds whether a payment has gone through or failed. This move is expected to significantly cut down the frustrating delays users often encounter when payments remain stuck in a prolonged “Processing” state. Under the new rules, the user may initiate the transaction status after 45 to 60 seconds of the initiation/authentication of original transaction.
Check Your Bank Balance
- In Beginning, users of PhonePe, Google Pay, and other UPI-based apps will no longer have unrestricted access to check their bank account balances. A new government regulation introduces a limit on the number of balance inquiries that can be made through UPI platforms each day. Effective August 1, UPI users will be limited to a maximum of 25 attempts per day to access details of bank accounts connected to their mobile numbers. This restriction applies to all platforms using the UPI system.
Schedule UPI Transactions
- The updated UPI guidelines now mandate that scheduled bill payments be processed only during designated time slots. This measure is intended to reduce the strain on the UPI network caused by daily transaction volumes.
- The users can execute UPI Autopay mandates such as electricity bills, water bills, OTT subscriptions, etc., only during non-peak hours. “Peak hours are defined as the period during the day when UPI financial transactions reach the highest transactions per second, observed from 10:00 hours to 13:00 hours and from 17:00 hours to 21:30 hours. Any other time shall be referred as non-peak hour. During peak hours, UPI members are required to restrict non-customer-initiated APIs,” the NPCI said.
UPI Payments Are Allowed In A Day
- The NPCI has not updated the number of UPI transactions allowed per day in its new UPI rules from 1 August. A user can make a maximum of 20 UPI transactions per day, with a daily limit of ₹1 lakh.
UPI Transfer For New Users
- For new users, there is a UPI transfer limit that is often put in place. Banks usually allow a UPI transfer of ₹5,000 per transaction and a cumulative ₹5,000 for the initial period for new users within the first 24 hours.
UPI Guidelines For Credit Lines
- Starting August 31, users will be allowed to link pre-sanctioned credit lines backed by fixed deposits (FDs), shares, bonds, gold, property, personal/business loans, etc, to UPI. All platforms have been asked to put in place infrastructure before August 31 for the same.
- Under the new regime, users will be able to make P2P, P2PM, merchant payments (P2M), and cash withdrawals via UPI with daily limits of Rs 1 lakh for payments, ₹10,000 for cash withdrawals, and up to 20 P2P transfers.
Balance Updates
- Banks will be required to send balance updates after every transaction. The idea is that this will ensure that users do not have to check their balance themselves repeatedly.
