Upcoming Updates to UPI Regulations as of August: Here's a Overview of the Modifications
Starting August 1, 2025, the Unified Payments Interface (UPI) system will introduce several changes to enhance its performance, security, and reliability. These updates, implemented by UPI app providers without requiring user action, aim to address system scalability challenges amid rapidly increasing transaction volumes.
One significant change involves the processing of autopay transactions such as subscriptions, loan repayments, and OTT payments. These payments will now be processed only during fixed time slots: before 10 AM, between 1 PM and 5 PM, or after 9:30 PM. If a payment is scheduled outside these slots, it may be processed before or after that time to avoid peak-hour overload. Failed autopay attempts will be retried, but if repeated failures occur, the payment will be canceled and the user notified.
To reduce server load and improve transaction speeds, users can now check their bank account balance a maximum of 50 times per day per UPI app. Similarly, users can view their linked bank accounts up to 25 times daily per app. The number of times a user can check the status of a failed or pending transaction is capped at three times per day, with a mandatory gap of at least 90 seconds between attempts.
For added security and system stability, the National Payments Corporation of India (NPCI) has imposed tighter rules on API call volumes for UPI apps and banks. This includes limits on how often linked bank account details can be requested. Non-compliance can lead to penalties or restricted access.
Before confirming a payment, the recipient’s registered name will now be displayed to the user. This fraud-prevention feature helps ensure money is sent to the intended beneficiary. The updates will also see UPI apps updating the status of payments within seconds starting August 1.
While these changes won't completely alter how users make payments, they are intended to improve the performance, speed, and security of the system. The updates will affect popular UPI apps like Google Pay, PhonePe, and Paytm. The exact number of balance checks allowed per day hasn't been shared yet, but the updates aim to reduce unnecessary pressure on the servers and provide a faster, more secure, and stable UPI experience.
- In the future, technological advancements in finance, such as the updated Unified Payments Interface (UPI) system, aim to improve the speed, security, and reliability of general-news transactions, including autopay, OTT payments, and loan repayments.
- To promote system stability, enhance security, and reduce server load, the implementation of the UPI updates will impact popular technology-driven finance apps like Google Pay, PhonePe, and Paytm, with limitations on balance checks, transaction status checks, and API call volumes enforced by the National Payments Corporation of India (NPCI).
