By: Anurag Tiwari
New UPI regulations: Limits on balance checks and autopayments, transaction recipient visibility, and enhanced payment status updates are some of the main modifications.
UPI Update 2025: Important Rule Changes Starting August 1
On Friday, August 1, the new UPI regulations will go into effect. These regulations will further improve UPI apps’ effectiveness and shield consumers from scams. They will be applied to all payment service providers, such as Google Pay, PhonePe, or Paytm, and are being implemented by the National Payments Corporation of India (NPCI).
Activities such as obtaining bank data, executing autopayments, and monitoring bank balances will be governed by the new regulations. All of these modifications would enhance the functionality of UPI applications, according to a circular released by NPCI on May 21.
Balance inquiry
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, UPI applications will also have the ability to restrict or halt balance inquiry requests. Users will be able to view their account’s available balance with each transaction starting in August.
Processing payments automatically
Banks can automatically deduct a certain amount from customers’ accounts on a regular basis by using auto payments. Autopayments, however, might put more strain on the Application Programming Interface (API) system if they are made during busy times. As a result, NPCI has ordered that certain transactions can only be completed before 10 am, between 1 and 5 pm, and after 9:30 pm. This implies that an autopayment that is due at 11 am may be debited either before or after that time. Furthermore, retries will be offered for successful autopay deductions; otherwise, autopay will be terminated.
Bank account information
The list of banks associated with their cellphone number will be visible to customers. They are limited to 25 daily checks of the bank’s information. Customers must begin requests after choosing the issuer’s bank via the UPI app, and they will only be allowed to view their bank data during specific hours.
Status of the transaction
Transactions are frequently made at busy times, when clients frequently feel that funds have been taken out of their accounts but have not yet been received by the recipient. These unconfirmed payments will no longer appear as pending after August; instead, they will have a time window to update within seconds. There will be a 90-second lag between the user’s three attempts to verify the payment status.
Information about the beneficiary
Before every transaction, the sender will be presented with the recipient’s name. This is to prevent fraud or money being sent to the incorrect person. On the UPI app, the transaction ID will be shown beside the recipient’s registered name.
The circular further states that NPCI may take any required steps, such as restricting access to the UPI API, imposing fines, suspending new clients or onboarding, or taking other appropriate action, in the event that these instructions are not followed. By implementing these regulations, NPCI hopes to improve online payment efficiency and lower the number of fraud incidents.
Auto Payment Processing Gets a Time Restriction Under New UPI Rules
Under the revised UPI guidelines effective from August 1, 2025, auto payment processing—which allows banks to automatically debit a specified amount from users’ accounts on a recurring basis—will now be time-restricted.
To reduce stress on the UPI API infrastructure during peak usage hours, the National Payments Corporation of India (NPCI) has mandated that all auto-debit transactions be processed only during non-peak hours. These time slots include:
Before 10:00 AM
Between 1:00 PM to 5:00 PM
After 9:30 PM
If an autopayment is scheduled during peak hours (e.g., 11:00 AM), the transaction may be deferred and processed either before or after the scheduled time. Moreover, the system will initiate retries for failed transactions to ensure successful deduction. However, if repeated attempts fail, the autopayment will be cancelled.
This move is aimed at improving system reliability and transaction efficiency for high-volume users across platforms.
FAQ: New UPI Regulations Effective August 1, 2025
1. What are the new UPI regulations starting August 1, 2025?
The National Payments Corporation of India (NPCI) has introduced new guidelines to enhance the security, efficiency, and functionality of UPI transactions. These apply to all UPI apps and payment service providers like PhonePe, Google Pay, Paytm, etc. Changes include:
Daily limits on balance checks and bank info requests
Time restrictions on autopayments
Improved transaction status updates
Display of recipient info before sending money
2. What is the new rule for checking bank balances through UPI?
Users will now be allowed to check their bank balance only 50 times per day per UPI app. UPI apps may also restrict or block balance inquiries during peak hours to reduce server load.
3. When can I make auto payments under the new rule?
Auto-debit transactions (like subscriptions, EMIs, etc.) can now only be processed during non-peak hours, which are:
Before 10:00 AM
Between 1:00 PM and 5:00 PM
After 9:30 PM
If a scheduled payment falls outside these slots (e.g., 11:00 AM), it may be debited before or after that time.
4. What happens if an autopayment fails during the allowed time window?
If an autopayment fails, retry attempts will be made to process the transaction. If all retries fail, the autopayment will be cancelled automatically.
5. Can I view which banks are linked to my mobile number?
Yes. Users will now be able to see the list of banks associated with their mobile number through the UPI app.
6. Is there a limit to how many times I can check bank account details?
Yes. A user can request bank information a maximum of 25 times per day. These requests must be made after selecting the issuing bank within the UPI app.
7. How will transaction statuses be updated under the new rules?
To avoid confusion during peak hours, UPI transactions will now auto-update status within seconds. A failed or pending transaction will be reconfirmed within 90 seconds across 3 verification attempts.
8. Will I see who I’m sending money to before confirming a UPI payment?
Yes. The recipient’s registered name will be shown before completing any UPI transaction. The transaction ID will also appear alongside their name for clarity and fraud prevention.
9. What action can NPCI take if UPI platforms don’t comply?
NPCI may enforce penalties for non-compliance, which could include:
Restricting UPI API access
Imposing fines
Suspending onboarding of new customers
Temporary bans or service interruptions
10. Why are these rules being introduced?
These new UPI regulations aim to:
Improve overall system efficiency
Reduce server overload during peak hours
Enhance user protection against fraud
Ensure transparency and smoother user experience
Why has UPI introduced new rules?
To make the UPI system more efficient, secure, and scalable. These measures have been implemented to prevent fraud and reduce system overload during peak hours.
What’s the benefit of fixed time slots for auto payments?
When auto-debit transactions occur during peak hours (like 11 AM), they put extra load on the server. By restricting them to non-peak hours (before 10 AM, 1–5 PM, and after 9:30 PM):
Server overload will be reduced
Chances of transaction failures will decrease
Users will experience smoother processing
Why is there a limit on balance checks?
Each user can now check their bank balance only 50 times per day per app, to ensure:
Unnecessary server load is avoided
Genuine transactions are processed faster
How does faster transaction status update help?
Earlier, users were often confused whether the money was debited or not. Now:
The status will update within 90 seconds
This will reduce confusion and protect against fraud
Why is the recipient’s name shown before payment?
This step helps prevent fraud and accidental transfers to the wrong account:
The sender will clearly see the recipient’s registered name
The transaction ID will also be displayed for transparency
Why is there a limit on checking bank information?
Users can now check their linked bank info only 25 times per day, to:
Avoid misuse or bot activity
Reduce system load and ensure fair access
What overall benefits will UPI get from these rules?
- Reduced server overload
- Faster and more reliable transactions
- Safer and smoother user experience
- Fewer scams and fraud incidents
- Uniform compliance across all UPI apps
Will these changes affect regular users negatively?
No. These rules are designed to protect users, improve clarity, and boost UPI transaction speed. Users may just need to adjust a few habits like checking timing before using certain features.
Final Word:
If you’re a regular UPI user, it’s important to stay updated and adapt to these new guidelines to avoid any disruption in your daily transactions.
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