New UPI Rules from August 1 2025, What Has Changed?

The National Payments Corporation of India (NPCI) will implement a new set of rules for the Unified Payments Interface (UPI) starting August 1, 2025. These changes aim to improve the stability, security, and efficiency of UPI services. Besides changes to UPI, a few updates in the broader financial system are also expected. In this article, we clearly explain the changes, their purpose, and clear up myths so that users can stay informed and continue using UPI safely.

New UPI Rules from August 1 2025

The new UPI rules from August 1, 2025, are designed to make digital payments smoother, safer, and more reliable. For regular users, these updates won’t cause any major disruption but will enhance security and performance. It is important to understand the real changes and ignore misinformation. UPI continues to be a free, fast, and trusted way to send and receive money in India.

Why NPCI Is Introducing UPI Changes

The changes come after NPCI issued a circular in April 2025, outlining technical updates to enhance the functioning of UPI. These rules are designed to reduce delays and manage system loads better during peak hours. They also focus on strengthening coordination between remitter banks, beneficiary banks, and Payment Service Providers (PSPs) such as PhonePe, Paytm, and Google Pay.

New UPI Rules from August 1 2025: Overview

Summarizing the key changes that will be effective from August 1, 2025, a table has been provided below. Check the key changes that are taking place from August 1st related to UPI in India:

Key Changes in UPI Rules

The major changes under UPI has been elaborated below based on the information provided by NPCI:

1. UPI Balance Check and Account Check Limits

To reduce unnecessary server load, NPCI has introduced new limits on balance inquiries and account checks. Users can now check their account balance up to 50 times a day per UPI app. Also, checking linked account information is limited to 25 times per day per app. These limits apply individually to each UPI app, so using more than one app gives users more flexibility. Avoid checking your balance during peak hours to prevent delays in transactions.

2. Auto Pay Transactions

Auto pay transactions such as subscriptions and recurring payments will now only be processed during non-peak hours. This is to ease server load and speed up UPI transactions.

Permitted Time Slots for Auto Pay:

If you have auto-pay set up for bills or apps, they will now be processed during these time periods-

• Before 10:00 AM
• Between 1:00 PM and 5:00 PM
• After 9:30 PM

3. Limit on Transaction Status Checks

Users often check the status of a transaction multiple times, which increases system traffic. To manage this, NPCI now allows only 3 transaction status checks per payment, with a minimum gap of 90 seconds between each. Users are advised to wait before retrying or checking status to avoid app errors or delays.

Also Check: Important Days in August 2025

4. Beneficiary Name Preview Before Payment

To reduce errors and fraud, the recipient’s bank-registered name will now be displayed before you confirm a payment. This change ensures that you’re sending money to the right person and not a fraudster who may be using a similar UPI ID.

5. Inactive UPI IDs Will Be Deactivated

If you haven’t used your UPI ID in the last 12 months, it will be automatically deactivated starting August 1. This is done to prevent misuse of dormant accounts. You can reactivate your UPI ID by logging into your UPI app again and completing the necessary steps.

6. Increase in UPI Lite Transaction Limit

UPI Lite is used for quick, small-value transactions without a UPI PIN. From August 1, the UPI Lite daily limit will be increased from ₹500 to ₹1,000. This change helps users pay small amounts more easily at places like local shops or for transport. This allows users more freedom to make small, frequent payments quickly and securely.

• Old Limit: ₹500
• New Limit: ₹1,000

7. Verification on New Devices Made Compulsory

If you switch to a new mobile device, you will now be required to verify your registered mobile number again. This step adds an extra layer of security and ensures that only authorized users access your UPI account from new devices.

8. New Limits on Person-to-Merchant Transactions

NPCI has set a daily limit of ₹1 lakh for Person-to-Merchant (P2M) transactions, such as paying shops or online services. While most users won’t need to exceed this limit, those who do must request approval from their bank.

9. AI-Powered Fraud Monitoring Introduced

To protect users from scams, NPCI is implementing AI-based fraud detection systems in New UPI Rules. These alerts can help stop fraud before it happens, making UPI safer for everyone. These systems will automatically monitor for:

• Multiple failed OTP attempts
• Transactions from unknown IPs or devices
• Suspicious login behavior

New UPI Rules from August 1 2025: Myths and Rumors Clarified

Several false claims are being circulated online about UPI. These myths can cause confusion, so always refer to NPCI’s official updates or your UPI app for verified information. Here are the most common ones and the actual truth based on New UPI Rules:

New UPI Rules: What Should You Do as a User?

To continue using UPI without problems, follow these simple steps mentioned below. Following these steps ensures you remain compliant with the new rules while enjoying safe digital payments as per New UPI Rules.

• Use UPI at least once every few months to keep your ID active
• Limit balance checks, especially during peak hours
• Verify your mobile number when switching devices
• Always check recipient name before paying
• Keep your app updated for the latest security features