UPI Rules August 2025: Everything You Must Know
The National Payments Corporation of India (NPCI) has rolled out important changes to UPI that take effect from August 1, 2025, aimed at improving system stability, reducing transaction failures, and strengthening security protocols. These updates impact users of popular UPI apps like Google Pay, PhonePe, Paytm and BHIM across India. Let’s dive into the article “UPI rules August 2025” to swim in the new updates.
Why These new UPI rules August 2025 Were Introduced
As of mid-2025, UPI processed over ₹24 trillion in transactions in June alone. Surging growth led to higher system load, outages during peak hours, and performance degradation due to repeated API calls such as balance checks and status refreshes .
In response, NPCI issued a circular on May 21, 2025, urging banks and payment service providers (PSPs) to enforce restrictions on API calls—both customer-initiated and system-initiated—monitoring transaction-per-second (TPS) limits and routing user requests in queues to manage volume efficiently .
Key UPI Rule Updates Effective August 1, 2025
Daily Limit on Balance Checks introduced in new UPI rules August 2025
1. Users can check their bank balance up to 50 times per day per UPI app
2. Popular apps like GPay, PhonePe, Paytm each provide separate 50 daily checks limit per app
3. As a relief, the balance will now automatically display after every successful transaction, eliminating the need for manual checks
Linked Bank Account View Limit
1. Retrieval of bank accounts linked to your mobile number is capped at 25 times per day per app
2. This reduces redundant API calls and eases pressure during peak usage hours
Status Check Restrictions
1. Users can check the status of a pending transaction only three times, with a minimum gap of 90 seconds between each attempt
2. This ensures less frequent retry flooding and faster system response
Fixed Time Slots for AutoPay Transactions
1. Scheduled UPI AutoPay transactions (such as utility bills, subscriptions, EMI, mandates) will now be processed during predetermined non-peak time windows:
- Before 10:00 AM
- Between 1:00 PM and 5:00 PM
- After 9:30 PM
This streamlining prevents system overloads during peak transaction hours
2. Failed autopay mandates will trigger automatic retries in the same time slot instead of scattering across day
Beneficiary Name & Transaction ID Display
1. UPI apps must now display the receiver’s registered name and transaction ID before a payment is confirmed
2. This measure aims to reduce risks of incorrect or fraudulent transfers by ensuring clarity before authorization
Penalties & Compliance Enforcement
1. Banks and PSPs must comply with API request throttling and submit formal undertakings by August 31, 2025
2. Non-compliance may lead to penalties including limits on onboarding new users, restricted API access, or financial penalties from NPCI
UPI-Related Charges for Aggregators
1. From August 1, payment aggregators (like GPay, PhonePe, Paytm) may face fees from banks or partners, but end users and merchants remain unaffected
2. UPI transactions continue to be GST-free, preserving cost-free usage for consumers
Additional Updates Related to UPI Ecosystem
1. Credit Line Integration via UPI (Starts August 31)
2. Users can link pre-approved credit lines (FDs, loans, credit cards) for UPI transactions starting August 31, 2025
3. Limits: ₹1,00,000/day for payments; ₹10,000/day for cash withdrawal; maximum 20 P2P transfers/day via credit line
UPI API Governance
1. PSPs must monitor and queue API requests, enforcing TPS limits and proper usage of both customer and system-generated requests
2. Audit compliance is mandatory via submission of undertakings by end of August 2025
User Impact: What You Should Know About Neew UPI Rules August 2025
1. Regular users: Daily balance checks and account views will be limited—avoid hitting the cap frequently
2. Recurring payments: Subscriptions and mandate processing will happen only within specific windows—plan accordingly
3. Status refreshes: Pending payment status can only be checked thrice with patience—avoid spam refreshes
4. Fraud prevention: Clear display of beneficiary name avoids accidental transfers
5. Aggregator fees: Users will not notice any new charges; cost remains free for individuals and merchants
Tips to Navigate New UPI Rules August 2025 Smoothly
- Avoid manual balance checks—it will be shown automatically after payments