UPI rules change from August 1: Know Transaction Limits and other new changes

UPI rules change: The National Payments Corporation of India (NPCI) is rolling out several new rules for Unified Payments Interface (UPI) from August 1, 2025, aimed at making the system faster, more secure, and reliable. UPI rules change from August 1: Know Transaction Limits and other new changes.

UPI rules change from August 1 key changes:

1. Revised Daily Transaction Limits:

Standard P2P (Peer-to-Peer) transactions: New limit set at ₹1.5 lakhs per day.

Merchant payments (e-commerce, utilities): Limit raised up to ₹2 lakhs per day.

High-value categories (education, hospitals): Limit extended to ₹5 lakhs per day with authentication.

UPI Credit Line users: Special limits will apply as per bank policy.

2. Fixed AutoPay Execution Time:

All UPI AutoPay mandates (for subscriptions, EMIs, etc.) will now be executed within specific time windows to avoid peak hour congestion:

Before 10 AM

Between 1 PM and 5 PM

After 9:30 PM

This means no more surprise deductions at any random time of the day.

3. Faster Refunds for Failed Transactions:

Banks and UPI apps will now be required to resolve failed transactions and initiate refunds within 2 hours. This is a significant improvement from the previous longer wait times.

4. Mobile Numbers Will Be Scored for UPI Risk (Fraud Score System):

The RBI’s new ‘Fraud Score’ system will assign a risk score to mobile numbers based on suspicious activity.

If your number is flagged as “High Risk,” UPI payments may be delayed, limited, or even blocked to prevent fraud.

Major UPI apps like PhonePe, Paytm, and Google Pay will integrate this system.

5. Stricter E-Mandate Verification:

Setting up recurring payments (like SIPs, loan EMIs, or subscriptions) will now require additional verification, such as an OTP or biometric authentication, to reduce unauthorized debits.

6. Enhanced UPI Credit Line Integration:

The UPI Credit Line feature, allowing users to make purchases using a pre-approved credit line from banks, will see wider rollout across top banks.

There will be clear daily spending caps for credit-linked UPI, and interest and repayment terms will be transparently displayed in-app.

From August 31, 2025, new guidelines related to pre-sanctioned credit lines will come into force, ensuring consistency in customer experience and aligning the use of these credit lines with their intended loan purpose.

7. Limits on API Calls (to reduce server load):

Balance Check Limit: Users can now check their account balance a maximum of 50 times per day per UPI app.

Linked Account View Limit: You will be able to see which bank accounts are linked to your mobile number only 25 times per day.

Transaction Status Check Limit: If a payment is stuck or pending, you can check its status only 3 times, with a minimum gap of 90 seconds between each check.

Other Recent Changes (implemented prior to August 1, 2025 but relevant):

Faster API Response Times (June 2025): NPCI reduced the response time for payment requests and responses to 15 seconds, and for checking transaction status and reversing failed payments to 10 seconds.

Beneficiary Name Display (from June 30, 2025): Before completing any UPI payment, the actual bank-registered name of the recipient is now displayed, helping to reduce fraud.

Chargeback Limits (introduced December 2024): A maximum of 10 chargebacks in 30 days, with no more than 5 chargebacks to the same person or business.

These changes are being implemented to improve the overall efficiency, security, and reliability of the UPI system, especially given the massive increase in transaction volumes. Users are advised to be aware of these new limits and adapt their UPI usage habits accordingly.

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