The National Payments Corporation of India (NPCI) is set to implement new UPI usage rules starting August 1, 2025. This step will not only curb issues like performance bottlenecks, frequent system slowdowns, payment failures, etc. But it will also help in making the UPI smarter, scalable, and secure, apt for the cutting-edge tech.
The new rules introduce usage caps, API restrictions, and stricter mandate processing protocols. This will help in reducing backend stress, streamline user experience, and curb tech-based fraud, ensuring that the Unified Payments Interface (UPI) remains resilient as it scales to meet the demands of a digitally-transacting India.
The Revised Usage Caps
- The Balance Enquiry Limit – 50/day Per UPI App
Previously, many UPI apps used to run background processes to fetch the balance details with every transaction, and sometimes without even asking for it. But with new rules, there will be less strain on bank servers.
New feature: After every successful UPI transaction, your updated bank balance will automatically be shown to reduce the need for manual checks.
- Transaction Status Refresh – 3 Attempts with 90-second Gaps
If the transaction status shows “Pending”, users spam the refresh button to get the status, which multiplies the server load. To avoid this, the new rule gives only three attempts to refresh the status with a gap of 90 seconds between each attempt. This will help in reducing server spamming.
- Recurring Payments to Use UPI Autopay in Fixed Time-Slots
As per the new ruling, all the recurring payments like insurance premiums, OTT subscriptions, EMIs, SIPs, etc, must use the UPI autopay (e-mandates) in fixed time slots. As per the NPCI, the allocated fixed execution windows include the non-peak hours, including:
- Before 10 AM
- Between 1 PM to 5 PM
- After 9:30 PM
- Autopay Retry Limit – Max 4 Attempts
Earlier, there was no standard retry limit in case of autopay failure due to insufficient balance or any other issue that brings backend load and frustration. But with new rules, the limit is restricted to a maximum of 4 attempts (3 attempts after the original one, making it 4).
This will encourage users to maintain an adequate balance within the retry timeframe and will cut down unproductive retries.
The API Restrictions
- Bank Account List – 25 API calls/User per UPI app in a Day
This feature, known as List Account API, lets users see all bank accounts connected to their mobile number within a UPI app for a specific bank. As per the new rule by NPCI, a limit is set to 25 calls per user from a particular UPI application in a round time of 24 hours.
With this cap enforced, there will be a pause in repeated backend hits by apps that unnecessarily reload or auto-refresh the list.
- Balance Fetch API – 50 calls/User per UPI app in a Day
With a limitation of 50 calls per user per UPI application in a round time of 24 hours, this will reduce the repetitive and excessive background balance checks, ultimately helping the systems run smoothly.
The Mandatory
- Display of the Recipient’s Full Name before the Transaction
Going forward with the new rules in implementation, it is a must to display the receiver’s full name before confirming the transaction; it is even mandatory for the saved contacts or QR scans. This is done to eradicate the loophole of wrong number transactions or fraud.
This step will bring strong fraud protection for first-time users and high-value transactions.
- Auto-deactivation of Inactive UPI IDs
The new rules will curb the security risks by deactivating the UPI IDs that are non-operational for more than 12 months. The users mostly switch to other numbers without unlinking the old UPI IDs, resulting in security risks if the number gets reissued to someone else. Hence, this new rule is a major step toward preventing impersonation or fraud.
The Affect
- Everyday Users: While the everyday users will not see any big change with the implementation of the new rule, but they will get notified of the remaining balance after every transaction. Also, there will be smoothness in transactions with security at its best.
- NRIs & Frequent Overseas UPI Users: NRIs in the UAE or others who often use UPI should be mindful of the 50-times daily limit, especially when checking balances or sending money.
- Heavy Users & Fintech Apps: The Users and applications that make frequent API calls will have to draw their limits within the numbers decided by NPCI. Also, the users who rely on autopay for subscriptions, EMIs, SIPs, and other investments will have to keep a check.
- Businesses Accepting UPI: Merchant accounts that accept UPI payments or recurring mandates will also have to find a way, as these will be processed only during off‑peak slots.
To Do’s for UPI Users
- Limit unnecessary balance/status checks
- Review your Autopay mandates
- Update your mobile number on UPI
- Keep your UPI app updated
You can still send money, scan QR codes, and make payments as usual; those features remain unchanged. However, what’s changing is how often you can check your balance, view linked accounts, or use recurring payments like EMIs and subscriptions.
The upside is a more reliable and secure UPI experience. The trade-off is that you’ll need to be a little more mindful about how and when you use these specific features.
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