Implementation of New UPI Rules from 1 August, 2025

• 02 Aug 2025
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From 1 August 2025 onwards, new UPI rules have been implemented. These rules are anticipated to improve the functioning of UPI apps and protect users from becoming victims of fraud. The new rules have been put in place by the National Payments Corporation of India. All the payment service providers like Google Pay, Paytm and PhonePe will need to ensure compliance with these rules.

Activities such as obtaining bank details, executing autopayments and monitoring bank balances will be governed by the fresh UPI rules. All of these modifications would improve the functionality of UPI applications, according to a circular released by NPCI on May 21.

Bank Balance Enquiry

Users will be able to check their bank balance 50 times a day using each UPI app. In order to lessen the strain on UPI during ‘busy hours’, the UPI apps will also have the ability to limit or halt balance inquiry requests. Users will now be able to view their account's available balance with each transaction.

Auto Payment Processing

Auto payments enable banks to automatically debit a specified amount from user accounts on a recurring basis. However, processing these autopayments during peak hours can put additional strain on the Application Programming Interface (API) system. 

As a result, the National Payments Corporation of India has mandated that such transactions must be processed only during non-peak hours, specifically before 10 AM, between 1 PM and 5 PM, and after 9:30 PM. 

This means that if an autopayment is scheduled for 11 AM, it could be deducted either before or after the intended time. Moreover, retries will be allowed for successful auto payment deductions, after which the autopayment will be canceled.

Customers’ Bank Details

Customers will be able to view a list of banks linked to their mobile numbers. They can check their bank details a maximum of 25 times per day. Customers can access their bank information during designated times and must initiate requests after selecting their bank in the UPI app.

Status of UPI Transaction 

It is common for transactions to occur during peak hours. This in turn leads customers experiencing situations where money gets debited from the sender’s account but doesn't get received by rightful recipient. 

These unconfirmed payments will now have a time window to update within seconds rather than remaining in a pending status. Users will be able to check the payment status only three times, with a required time gap of 90 seconds between each check.

Details of the Transaction Recipient

The name of the transaction recipient will be displayed to the sender before each transaction. This measure has been put in place to prevent fraud and ensure that money is sent to the correct recipient. The registered name of the recipient, along with the transaction ID, will be shown on the UPI app. The circular also states that if these guidelines are not followed, the National Payments Corporation of India may take  actions it deems necessary. 

These could include restricting UPI API access, imposing penalties, suspending the onboarding of new customers or implementing other measures. With these rules in place, NPCI aims to enhance the efficiency of online payments and reduce instances of fraud.

Source: Hindustan Times