New UPI Rules Starting August 1: India’s Unified Payments Interface (UPI) Sets New Rules For Fast Payments

India's UPI is at the forefront of digital payments. New rules effective August 2025 aim to improve performance and security, addressing usage limits and peak hour restrictions.

India is leading the world in fast payments, thanks to the Unified Payments Interface (UPI). The International Monetary Fund (IMF) highlighted this in a note titled "Growing Retail Digital Payments: The Value of Interoperability." Launched by the National Payments Corporation of India (NPCI) in 2016, UPI has revolutionised money transfers in India.

Starting August 1, 2025, new UPI rules will be implemented to enhance system performance and reduce fraud. According to a circular from NPCI dated May 21, 2025, banks must monitor API requests for appropriate usage. This includes customer-initiated and PSP system-initiated transactions.

UPI Balance Enquiry Limitations

From August 1, users can check their account balance via UPI apps up to 50 times per app daily. This means each app can be used for balance checks up to 50 times within a day. This change aims to streamline app usage and prevent misuse.

Users will also have the ability to request transaction status updates. Under the new guidelines, they can initiate these requests between 45 and 60 seconds after the original transaction's authentication. This ensures timely updates while maintaining system efficiency.

Autopay Mandate Execution

The execution of UPI Autopay mandates will be restricted to non-peak hours. These mandates include payments for electricity bills, water bills, and OTT subscriptions. Peak hours are defined as periods with the highest transactions per second: from 10:00 AM to 1:00 PM and from 5:00 PM to 9:30 PM.

During peak hours, non-customer-initiated APIs must be limited by UPI members. This measure is intended to manage traffic effectively and ensure smooth transactions during busy periods.

Account Listing Restrictions

The new rules also limit how often customers can view linked bank accounts through an app. Users can now access their bank account details only 25 times per app every day. This restriction helps maintain security and prevents excessive data requests.

The upcoming changes reflect India's commitment to improving digital payment systems while safeguarding user interests. By implementing these measures, NPCI aims to enhance both performance and security across UPI platforms nationwide.