New UPI Rules from August 1, 2025 | Limits, Timing & Fraud Checks
NPCI's new UPI rules from August 1 cap balance checks to 50/day and linked account views to 25/day. Autopay limited to non-peak hours. Fraud checks improved.
A Major Overhaul for UPI Transactions
The National Payments Corporation of India (NPCI) has announced a significant update to the Unified Payments Interface (UPI) ecosystem, with a new set of rules coming into effect from August 1, 2025. These changes are designed to improve system efficiency, enhance security, and ensure a more stable and reliable experience for the millions of users who rely on UPI for their daily transactions. The new guidelines, which apply to all UPI-based applications like PhonePe, Google Pay, and Paytm, are a proactive step to manage the exponential growth in transaction volumes and prevent system overloads during peak hours.
For most casual users, the impact will be minimal and may even go unnoticed, but for frequent users or businesses, understanding these changes is crucial. The new rules introduce specific limits on certain API calls, optimize the timing of recurring payments, and implement stronger fraud prevention mechanisms. Here’s a detailed breakdown of what’s changing and how it will affect you.
New Limits on Balance Checks & Account Views
One of the most noticeable changes is the imposition of a cap on two specific types of API requests: checking bank balances and viewing linked accounts. This measure is a direct response to the strain placed on the UPI system's servers by frequent, often automated, requests.
- Balance Check Limit: Users will now be limited to a maximum of 50 balance checks per day, per app. This is a rolling 24-hour limit. The intent is to curb excessive, non-essential queries that contribute to system congestion. To compensate for this, NPCI has mandated that all issuer banks must now include the available account balance in the confirmation message after every successful financial transaction. This provides users with real-time balance information without needing a separate API call.
- Linked Account View Cap: The "List Account" API, which allows users to view all bank accounts linked to their mobile number, will also have a new restriction. This feature will be limited to 25 requests per customer, per app, per day. This limit, along with a requirement for explicit user consent before any retry attempts, is aimed at enhancing security and preventing automated scripts from enumerating user accounts.
For the average user, these caps are unlikely to be a problem. However, fintech apps and power users who rely on these APIs for internal processes will need to adjust their systems to comply with the new guidelines. The core principle is to reduce unnecessary load and prioritize actual payment transactions.
Autopay Transactions Now Restricted to Non-Peak Hours
To further alleviate the stress on the UPI infrastructure, the NPCI is introducing new rules for UPI Autopay. Previously, recurring payments for services like OTT subscriptions, EMIs, and SIPs could be executed at any time. From August 1, these transactions must now be processed during designated non-peak hours.
- New Timings: Autopay mandates will now be processed only during non-peak hours, defined as periods outside of the 10:00 AM to 1:00 PM and 5:00 PM to 9:30 PM windows. This means if a payment was scheduled for 11:00 AM, it might be executed earlier or later to avoid the high-traffic period.
- Retry Limits: Each autopay mandate will be allowed one initial attempt and a maximum of three retries. If the transaction fails after these four attempts, the payment will be cancelled. This change provides a clear cap on retries, preventing continuous attempts that could strain the system.
This is a significant change for merchants and users with recurring payments. While it may require some adjustments, it is intended to make the entire UPI ecosystem more resilient and less prone to outages during the busiest times of the day. Users are advised to keep an eye on their transaction alerts to ensure their payments are processed successfully.
Improved Fraud Prevention & Pending Transaction Management
Security and user experience are at the forefront of the new rules. The NPCI has introduced measures to tackle two common pain points: the uncertainty of pending transactions and the risk of accidental payments.
- Recipient Name Visibility: A critical anti-fraud measure is the mandate that all UPI apps must now display the registered name of the recipient before a transaction is confirmed. This extra step of verification gives users a chance to double-check the recipient's identity, significantly reducing the risk of accidental transfers to the wrong person.
- Status Checks for Pending Payments: The frustrating "pending" status on payments will now be managed more efficiently. Users will be limited to three attempts to check the status of a pending transaction, with a mandatory 90-second gap between each attempt. This prevents users from repeatedly mashing the refresh button, which can overload the system. The new guidelines also aim to ensure that a final 'success' or 'failure' status is provided within a much shorter timeframe.
These changes are designed to provide greater clarity and security for users, making the UPI experience more transparent and trustworthy.
Compliance and Impact on the Ecosystem
The NPCI has set a strict compliance deadline for all Payment Service Providers (PSPs) and member banks. Failure to adhere to these new guidelines by July 31, 2025, could result in penalties, API restrictions, or even the suspension of new customer onboarding. This stern warning underscores the importance of these changes for the stability and future growth of UPI.
In conclusion, the new UPI rules from August 1, 2025, mark a significant step towards a more mature and robust digital payments infrastructure. While they introduce some limitations, these are strategic moves to ensure the UPI system can continue to handle its massive and growing transaction volume without service disruptions. By reducing server load, enhancing security, and optimizing transaction flows, NPCI is paving the way for an even more reliable and secure digital payment future for India.
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