New UPI Rules Effective from 1st August 2025: Everything You Need to Know

 From 1st August 2025, the National Payments Corporation of India (NPCI) has rolled out a series of critical changes to streamline and safeguard the Unified Payments Interface (UPI) system. These new rules will affect users of popular UPI apps like PhonePe, Google Pay, Paytm, BHIM, and others. The changes aim to enhance security, reduce server congestion, and improve overall user experience.

Below is a detailed breakdown of the new rules that all UPI users should be aware of.

1. Daily Limit on Balance Checks

To ease the burden on bank servers and reduce system congestion, NPCI has introduced a cap of 50 balance inquiries per day per UPI app. This means if you use both PhonePe and Google Pay, you have a separate 50-check limit for each.

Additionally, to improve convenience, your updated bank balance will now be automatically displayed after every successful transaction, eliminating the need for frequent manual balance checks.

2. Linked Bank Account View Restrictions

Users can now view the list of their UPI-linked bank accounts only 25 times per day per app. This feature is being controlled to prevent misuse and reduce backend system load. Each request must be initiated only after selecting the respective bank within the app.

3. Limit on Transaction Status Checks

If a transaction remains pending, users can now check its status only three times, with a mandatory 90-second gap between each attempt. This move is designed to avoid repeated queries that slow down the system and cause confusion during peak times.

4. Timing Restrictions for Autopay Transactions

NPCI has restricted the processing of scheduled payments through UPI Autopay (e.g. OTT subscriptions, utility bills, SIPs) to non-peak hours only. Autopay requests will now be processed during the following time slots:

• Before 10:00 AM

• Between 1:00 PM – 5:00 PM

• After 9:30 PM

If a payment fails due to timing issues, the app will retry it up to three more times. If all retries fail, the mandate will be auto-cancelled.

5. Display of Recipient Details Before Payment

To prevent wrong or fraudulent transactions, UPI apps must now show:

• The recipient’s registered name

• A unique transaction ID

This feature allows users to verify payment details before transferring money, improving transaction safety.

6. Deactivation of Inactive UPI IDs

As part of system cleanup and fraud prevention, any UPI ID that remains inactive for over one year may be deactivated automatically, including its linked bank account. Users are advised to make at least one transaction periodically to keep their ID active.

7. Faster Refunds for Failed Transactions

In case of failed UPI transactions, refunds will now be processed faster, ensuring users don’t face long wait times or have to raise complaints for non-receipt of funds.

8. Stricter Guidelines for Business UPI Accounts

Business or merchant UPI accounts will be subjected to new verification and monitoring procedures to curb misuse and ensure transparency in commercial UPI usage.

9. Penalties for Non-Compliance

Apps and banks that fail to implement or follow these guidelines may face strict actions from NPCI, including:

• Restriction of API access

• Suspension of new user onboarding

• Other disciplinary actions as deemed necessary

Why These Changes Matter

These rule updates aim to ensure smoother, safer, and more efficient UPI usage across the country. India’s digital payments ecosystem is one of the largest in the world, and these refinements are a step toward enhancing stability while tackling rising cyber fraud and server overload.

About NPCI (National Payments Corporation of India)

The National Payments Corporation of India (NPCI) is an umbrella organization for operating retail payments and settlement systems in India. It was established in 2008 by the Reserve Bank of India (RBI) and the Indian Banks’ Association (IBA) under the provisions of the Payment and Settlement Systems Act, 2007.

Key Facts about NPCI:

• Founded: 2008

• Headquarters: Mumbai, Maharashtra

• Promoted by: Reserve Bank of India (RBI) & Indian Banks’ Association (IBA)

• Type: Non-profit organization, governed under Section 8 of the Companies Act, 2013

Major Products and Platforms by NPCI:

1. UPI (Unified Payments Interface) – Real-time mobile-based money transfer system

2. IMPS (Immediate Payment Service) – Instant interbank fund transfer service

3. RuPay Card – Domestic card payment network, alternative to Visa and Mastercard

4. BHIM App – Government-backed UPI-based payment app

5. Aadhaar Enabled Payment System (AePS) – Banking services using Aadhaar authentication

6. NACH (National Automated Clearing House) – Bulk and recurring payment system

7. NETC FASTag – Toll collection system using RFID technology

8. BBPS (Bharat Bill Payment System) – Centralized bill payment infrastructure

Objective and Mission:

NPCI’s mission is to touch every Indian with one or the other digital payment services and to create a robust, scalable, and inclusive payment infrastructure for the country.