New UPI Rules Limit Balance, Auto-Pay August 1.
Starting August 1, new UPI rules will limit the number of balance checks and auto-pay request timings per app. This aims to reduce server load and improve system efficiency across the digital payment ecosystem.
Mumbai: New UPI Rules from August 1 to Improve Safety, Speed, and Reduce System Load
From August 1, Unified Payments Interface (UPI) users across India will notice a few changes in the way they interact with their payment apps. These updates, introduced by the National Payments Corporation of India (NPCI), are aimed at improving transaction speed, reducing pressure on the banking systems, and making digital payments even safer.
The new set of guidelines is mandatory for all players in the UPI ecosystem, including banks and payment apps like Google Pay, PhonePe, Paytm, and others. NPCI has directed that these rules must be fully implemented by July 31, and any failure to comply could result in penalties, restrictions on API access, or even suspension of onboarding new customers.
1. **Limit on Balance Enquiries: 50 Per Day Per App**Beginning next month, there will be a cap of 50 balance enquiries per day per customer per app, within a rolling 24-hour window.
This rule might sound strict at first glance, but there’s a key detail: the limit is per app, not per user across all apps. That means, if you hit the limit on one app, you can still check your balance using another UPI app linked to your account. For example, if you’ve already checked your balance 50 times on PhonePe, you can still log in to Google Pay or Paytm to check it there.
In many cases, apps trigger balance requests automatically — something that will no longer be allowed. Only user-initiated balance checks will be counted, according to NPCI’s circular.
2. **Restrictions on Auto-Pay Timings**Scheduled auto-payments, which include things like bill payments, EMI deductions, and subscription renewals, will now happen only during off-peak hours.
The NPCI has identified peak hours as:
- 10:00 a.m. to 1:00 p.m.
- 5:00 p.m. to 9:30 p.m.
So from August 1 onward, auto-debit mandates or scheduled payments will only be processed:
- Before 10:00 a.m.
- Between 1:00 p.m. and 5:00 p.m.
- After 9:30 p.m.
The goal is to keep peak hours free for real-time, user-initiated transactions, ensuring better speed and fewer failed payments.
3. **Limit on Viewing Linked Bank Accounts**Another lesser-known, but important change is the limit on how many times a user can view the list of linked bank accounts in a UPI app. This activity will now be restricted to 25 times per day per app.
While most people don’t access this list that frequently, it’s a safeguard to prevent overuse of system resources and to detect unusual patterns that may indicate fraudulent activity.
4. **Enhanced Verification Before Payments**To reduce errors and frauds, UPI apps will now display the recipient’s registered bank name before a transaction is completed. This is in addition to the recipient’s name (which already appears during most UPI transactions).
This extra layer of verification will help users double-check who they’re sending money to, especially in business payments or transfers involving unknown recipients. It’s a small change, but one that could help prevent many common mistakes and scams.
5. **Strict Enforcement from NPCI**NPCI is taking these changes seriously. It has clearly stated that non-compliance by any payment app or bank will lead to strict consequences, which could include:
- Penalties
- Suspension of new user onboarding
- Limited or suspended access to the UPI APIs
These measures are meant to ensure a uniform standard of safety, efficiency, and performance across the entire UPI network.
Why These Changes MatterHowever, as usage grows, so do concerns about system overloads, delays, fraud, and unintentional errors.
With these changes, NPCI is aiming to streamline UPI usage, keep systems responsive even during high traffic hours, and make sure that the user experience remains fast, smooth, and safe.
So if you find yourself limited in how often you can check your balance or set up an auto-payment during the day, remember — it’s all part of a broader