New UPI changes from August 1: What users must know
What's the story
The National Payments Corporation of India (NPCI) has announced new regulations for the Unified Payment Interface (UPI) system, effective August 1, 2025. The changes include new Application Programming Interface (API) usage rules for all banks and payment apps, including AutoPay and checking account balance. The aim is to make UPI more reliable, seamless, and less prone to disruptions during peak hours.
User impact
Users can check bank balance only 50 times daily
As part of the new rules, UPI users will be restricted to checking their account balance a maximum of 50 times a day. The number of times one can check bank accounts linked to their phone number will also be limited to 25 times per day. These restrictions are aimed at reducing unnecessary traffic on the system, which NPCI says causes slowdowns and outages during peak usage.
Transaction scheduling
Fixed time slots for autopay transactions
NPCI has also introduced fixed time slots for UPI AutoPay transactions. This means scheduled payments such as auto payments, subscriptions, utility bills, or EMIs will be processed during specific windows instead of randomly throughout the day. While it's a behind-the-scenes change, it should help reduce congestion on the platform and improve overall speed during regular usage hours.
Transaction limits
No changes to existing payment cap
Despite the new rules, there are no changes to the existing UPI payment cap. The transaction limits remain unchanged - up to ₹1 lakh per transaction in most cases, and up to ₹5 lakh for certain categories like healthcare or education. The August 1, 2025, update does not affect these limits.
Implementation process
What should you do?
The new rules will be implemented automatically through your UPI apps, so no immediate action is needed on your part. However, it is important to be aware of the new limits to avoid unnecessary transaction blocks during the day. Businesses relying on automated UPI collections may have to adjust their schedules according to these changes but for most users, everything will continue to work as usual.