New UPI rules explained: Here's what they mean for your daily transactions

New UPI rules aim to improve speed and stability of UPI transactions during peak hours

From August 1, Unified Payments Interface (UPI) apps like Paytm, PhonePe, Google Pay and others have started implementing new rules that restrict the number of backend requests users or apps can make in a day. These changes, introduced by the National Payments Corporation of India (NPCI), are designed to ease system congestion and improve the overall reliability of UPI services.

 

Why UPI limits were introduced?

 

NPCI observed that too many non-financial requests, such as repeated balance checks or account fetches were putting unnecessary strain on the UPI system. These actions do not move money, but still require the network’s attention, especially during high-traffic periods. The new framework introduces daily limits to keep systems running efficiently.

 

 

New UPI changes from August 1

 

·  Bank balance checks:

Limited to 50 times per app per day. Banks are now required to show your updated balance automatically after every successful transaction to reduce the need for frequent checks.

 

·  Linked account views:

Restricted to 25 times per day per app. If the app fails to fetch account details, it must ask you to retry manually instead of attempting again on its own.

 

·  Autopay mandates:

Will now be processed only outside peak hours, i.e., not between 10 am to 1 pm and 5 pm to 9:30 pm. Each mandate will be executed once, with only three retry attempts allowed.

 

·  Merchant verification:

Platforms can now fetch merchant verification data or security keys only once a day, and only during non-peak hours.

 

·  Status checks for payments:

These must follow a staggered schedule, as previously advised by NPCI, to avoid spikes in backend traffic.

 

UPI apps must monitor their traffic

 

Apps and banks are now accountable for all automated background activity, whether triggered by the user or not. NPCI has directed platforms to stop blindly forwarding partner requests, especially during high-traffic hours.

   

What happens if new UPI rules are not followed?

 

All UPI apps were required to implement the changes by July 31, 2025. A compliance audit must be submitted to NPCI by August 31, 2025. Failure to comply could result in penalties, limited API access, or a ban on onboarding new users.

 

These steps are expected to make the UPI experience smoother, particularly during times when most users are transacting.