New UPI Rules From August 1, Big Changes Coming To Payments & Prices

Unified Payments Interface (UPI), India’s most popular digital payment system, is about to get a significant update. From August 1, 2025, the National Payments Corporation of India (NPCI) will enforce new rules to ensure smoother transactions, enhanced efficiency, and fewer outages for everyone from casual users to high-frequency merchants. Here’s a comprehensive breakdown of what’s changing, why it matters, and what you need to do to stay ahead.

What are the New UPI Rules from August 1, 2025?

1. Balance Check Limit: 50 Times Per Day Per UPI App

Previously, there was no cap on how many times you could check your account balance through UPI apps like GPay, PhonePe, or Paytm. Now, you can check your bank account balance up to 50 times daily per UPI app. If you use multiple apps, the limit applies separately on each. This move aims to prevent backend overload, especially during peak hours, and targets power-users who refresh balances excessively.

2. Limitation on Viewing Linked Bank Accounts: 25 Times Per Day

Users can now view their linked bank accounts only 25 times per day per UPI app. Changing accounts, checking linked accounts, or switching between them all count towards this limit. This restriction reduces server stress caused by frequent requests.

3. UPI Autopay Transactions: Fixed Time Slots Only

Recurring or scheduled payments (like subscriptions, utility bills, OTT services, or EMIs) will only be processed during designated off-peak windows instead of randomly throughout the day. Although these changes mostly occur in the background, businesses need to adjust the timing of their automatic payment collections.

Designated slots are typically before 10:00AM and between 1:00PM to 5:00PM. No autopayments are processed after 9:30PM. This change aims to alleviate payment system congestion and improve transaction speeds.

4. Transaction Status Checks: Max Three Times Per Payment

After making a payment, you can now check its status only three times, and you must wait at least 90 seconds between each status refresh.

upi rules 2025

This measure is set to stop excessive backend requests, further reducing unnecessary system strain.

5. No Change to UPI Payment Caps

The maximum UPI transfer remains ₹1 lakh per transaction, and up to ₹5 lakh for medical and educational payments. There are no new caps on the total transaction value or daily usage levels for regular user-initiated payments.

6. Potential Impact on UPI Pricing

Though UPI remains free for most end users, some merchant payments above ₹2,000 via digital wallets (PPIs) attract a service/interchange fee. This is not charged to private users, but it may affect pricing of goods or services if businesses choose to pass on these costs.

7. Account Deactivation Rule

If your UPI-linked mobile number isn’t used for 90 days, your UPI account could be deactivated. This helps keep the database clean and improves platform safety.

Why NPCI Is Making These Changes

• Improving reliability and speed: With trillions of transactions, UPI’s backend faces immense pressure. The new limits specifically reduce unnecessary “query traffic.”

• Reducing outages: High-traffic days saw outbursts of payment delays and failures. By shifting routine background requests to off-peak hours, system stability improves.

• Protecting users: Clearer, scheduled rules reduce chances of auto debits at odd hours or transaction bottlenecks.

• Making UPI greener: Fewer unnecessary requests mean less server power and energy use.

Impact on Users and Businesses

• For regular users: Occasional UPI users won’t notice much change unless they habitually check balances or linked accounts dozens of times per day. Everyday payments, balance checks, and autopays will continue, but within the new rules.

• For heavy users and merchants: Frequent checkers, fintech businesses, and utility service providers need to adapt their automation processes to match the new time and query caps.

• SMEs and retailers: Payment collections via UPI AutoPay will need to synchronize with new time windows, potentially changing when recurring revenue is received.

• For digital wallet users: High-value payments via wallets (>₹2,000) could involve merchant fees, potentially impacting costs for certain services, but not for typical shoppers.

What You Need To Do

• Track your balance checks: Avoid excessive checking to stay within daily caps. Use in-app transaction history if needed.

• Sync autopay schedules: If you run a business, review your recurring payment batches and notify customers if timings change.

• Monitor linked account views: Plan ahead when switching bank accounts or managing multiple apps.

• Be aware of wallet payment fees: Choose bank-linked UPI for large payments to avoid additional merchant fees where applicable.

• Keep your UPI number active: If you’re traveling or not using your Indian SIM, make sure to perform a UPI transaction at least every 90 days to avoid account deactivation.

Final Thoughts

These UPI rule changes from August 1, 2025, mark a shift toward more sustainable, reliable digital payments across India. While the changes may seem restrictive, they are designed to safeguard user experience and ensure UPI’s backbone can handle India’s booming digital economy. By tweaking your usage just a bit, you can benefit from smoother, more dependable, and secure payments every day.