New UPI Rules Effective August 1: Daily Limits, Autopayment Timing, and Fraud Protection Among Key Changes

Byline:

Staff Correspondent | Mumbai | July 29, 2025

Lead:

From August 1, 2025, the National Payments Corporation of India (NPCI) will roll out a new set of rules governing the operations of Unified Payments Interface (UPI) services. The move is aimed at enhancing transaction efficiency and bolstering user protection amid the rapid growth of digital payments across the country.

Body:

The NPCI, in a circular dated May 21, 2025, notified all UPI payment service providers, including major players like Google Pay, PhonePe, and Paytm, of multiple regulatory changes. These revisions are targeted at streamlining backend systems, reducing transaction delays, managing server load during peak hours, and minimizing fraud.

 

Balance Enquiry Limited to 50 Times Per Day

One of the key changes is a cap on how frequently users can check their bank account balance through UPI apps. From August 1, each user will be restricted to 50 balance enquiry attempts per day. The new rule is designed to alleviate stress on banking servers, particularly during peak hours when simultaneous requests from millions of users often lead to delays.

Additionally, UPI applications will now display the current available account balance automatically after each transaction. This measure is expected to reduce the need for separate balance checks and improve user experience.

 

Autopayment Windows Rescheduled to Non-Peak Hours

Recurring autopayments—used for subscriptions, EMIs, insurance premiums, and utility bills—will now be processed only during specific non-peak hours. According to NPCI guidelines, autopay transactions will be executed before 10:00 AM, between 1:00 PM and 5:00 PM, and after 9:30 PM.

This shift is a significant operational change, as many autopayments are currently processed at fixed times regardless of system load. NPCI notes that limiting these to non-peak slots will help stabilize Application Programming Interface (API) performance. Should an autopayment fail, the system will attempt automatic retries. If the retry attempts are unsuccessful, the transaction will be canceled.
 

Access to Linked Bank Information Capped
 

To reduce excessive system queries and enhance privacy safeguards, customers will be allowed to view their linked bank account details a maximum of 25 times per day. Accessing this information will require users to manually select the issuing bank from within their UPI app. The NPCI clarified that this feature must be triggered directly by the user and cannot be automated.
 

Real-Time Transaction Status Updates and Restrictions
 

A frequent issue faced by UPI users is payment confirmation delays during peak usage periods. NPCI’s new policy addresses this by mandating that transaction status updates be processed in near real-time. If a payment remains unconfirmed, the system will now resolve it within seconds, rather than minutes.

To avoid excessive polling, users will be allowed to check the status of a pending transaction only three times, with a mandatory 90-second interval between each attempt.
 

Recipient Verification Before Every Transaction
 

To further prevent mistaken or fraudulent transfers, UPI platforms must now display the name of the transaction recipient to the sender before each payment is confirmed. This verification step will include the recipient’s registered name and the transaction ID, enabling users to double-check that funds are being sent to the correct person or entity.

This measure is expected to significantly curb incidents of money being sent to unintended recipients—a growing problem in the digital payment ecosystem.

 

Non-Compliance May Lead to Penalties or API Restrictions
 

NPCI has issued a strict warning to all payment service providers regarding adherence to the new guidelines. In cases of non-compliance, the regulatory body may impose penalties, restrict access to UPI APIs, suspend onboarding of new users, or take other disciplinary action deemed necessary.

Service providers have been asked to update their systems and notify users about the impending changes before the rules take effect on Friday, August 1, 2025.
 

Industry Reaction and User Impact
 

While most industry stakeholders have welcomed the move, citing the need for robust operational controls, there is some concern about potential disruptions during the transition period. UPI transactions in India have crossed 10 billion per month, and the increasing volume has led to growing infrastructure strain.

Experts believe that the new rules strike a balance between maintaining seamless access for users and ensuring sustainable system performance for the long term.
 

Conclusion: A Step Towards Safer, Smarter Digital Payments
 

With these changes, NPCI aims to make India’s digital payment environment more secure, transparent, and scalable. The rules underscore the importance of responsible UPI usage by both service providers and users, ensuring that real-time payments remain swift, reliable, and fraud-resistant.

As the deadline approaches, users are advised to update their UPI apps and stay informed about the new guidelines to avoid inconvenience and enjoy a smoother transaction experience.