PhonePe, Google Pay and Paytm rules change from September 15

PhonePe, Google Pay and Paytm: There are significant new rules for Unified Payments Interface (UPI) payments that are set to take effect from September 15, 2025, which will affect users of apps like PhonePe, Google Pay, and Paytm.

These changes mandated by the National Payments Corporation of India (NPCI), are designed to streamline the system, enhance security, and facilitate high-value transactions.

Here are key changes:

1. Increased Transaction Limits for Specific Merchant Payments:

This is the most impactful change for users. The standard UPI transaction limit of Rs 1 lakh remains unchanged for person-to-person (P2P) transfers. However, the NPCI has drastically increased the per-transaction and daily cumulative limits for payments to verified merchants in several key categories.

New Transaction Limits (Effective Sept 15):

Rs 5 lakh per transaction, with a Rs 10 lakh daily cumulative limit:

Capital Markets (Investments)

Insurance

Government e-Market Place (EMD Payments)

Travel

Collections (loan repayments, B2B, EMIs)

Business/Merchant payments (including pre-approved payments)

FX Retail use case with BBPS Platform

Digital Account Opening for Term Deposits

Rs 5 lakh per transaction, with a Rs 6 lakh daily cumulative limit:

Credit Card Bill Payments

Rs 2 lakh per transaction, with a Rs 6 lakh daily cumulative limit:

Jewellery Purchases

Rs 2 lakh per transaction, with a Rs 2 lakh daily cumulative limit:

Digital Account Opening (initial funding)

This change is a major step towards making UPI a preferred platform for high-value commerce, moving it beyond just small-value transactions. It also aims to reduce the reliance on other payment methods like RTGS and NEFT for these specific purposes.

2. Discontinuation of the UPI “Collect Request” Feature:

While this change is set to take place on October 1, it’s a critical new rule. The NPCI has decided to remove the peer-to-peer (P2P) “collect request” feature to curb fraud. This is the feature that allows a user to send a money request to another person.

The decision was made because fraudsters have been widely misusing this feature by sending fake requests, often in the guise of emergencies or fake identities. After October 1, all P2P transactions will have to be payer-initiated, meaning users must either scan a QR code or manually enter a UPI ID to send money, giving them full control and preventing accidental transfers.

Other Recent Changes (Effective August 1, 2025):

Daily Balance Check Limits: Users are now limited to a maximum of 50 balance checks per day per UPI app.

Recurring Payment Timings: Automatic or recurring payments (AutoPay) are now processed only during specific time windows (before 10 a.m., between 1 p.m. and 5 p.m., and after 9:30 p.m.) to reduce system strain during peak hours.

Enhanced Security: All apps are now required to display the recipient’s verified name before a payment is made to prevent misdirected transfers.

Faster Transaction Status Updates: Apps must now display the real-time status of a transaction instantly, eliminating “processing” or “pending” labels.

In summary, the new rules from September 15 are a significant expansion of UPI’s capabilities for high-value transactions with verified merchants. The upcoming change to remove “collect requests” is a major security measure aimed at protecting users from fraud.

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