UPI New Rules 2025: Key Changes for PhonePe, Google Pay, and Paytm Users

As of August 1, 2025, the National Payments Corporation of India (NPCI) has rolled out new Unified Payments Interface (UPI) rules that impact millions of users across platforms like PhonePe, Google Pay, Paytm, and BHIM. These changes aim to enhance system efficiency, reduce server congestion, and improve transaction security in India’s booming digital payment ecosystem, which processed over 15,537 crore transactions worth ₹223 lakh crore from January to November 2024. While the updates won’t disrupt regular payments for most users, they introduce specific limits that frequent UPI users need to be aware of. Here’s a breakdown of the key changes and how they affect your daily transactions.

1. Limit on Bank Balance Checks: 50 Times Per Day

One of the most significant changes is the cap on checking bank account balances through UPI apps. Previously, users could check their balance unlimited times, but now, a limit of 50 balance inquiries per day per app has been set. This restriction aims to reduce the strain on backend systems caused by excessive API calls during peak hours. To offset this, UPI apps will now automatically display your updated balance after every successful transaction, reducing the need for manual checks. For users who frequently monitor their accounts, this cap may require more mindful usage, especially if using multiple UPI apps.

Example: If you check your balance 50 times on PhonePe, you’ll be blocked from further checks on that app for 24 hours, but you can still use Google Pay or Paytm, as the limit applies per app.

2. Restrictions on Viewing Linked Bank Accounts: 25 Times Per Day

Another new rule limits how often you can view or fetch details of bank accounts linked to your mobile number or UPI ID. Users are now restricted to 25 attempts per day per app. This includes actions like updating or re-linking bank accounts. The cap is designed to curb repetitive verification attempts that clog the system, ensuring smoother performance during high-traffic periods. If a request fails, apps cannot auto-retry without user permission, further reducing unnecessary system load.

Tip: Double-check your bank selection to avoid wasting attempts, as exceeding this limit will block further account views for the day on that app.

3. AutoPay Transactions Shift to Fixed Time Slots

Auto-debit payments for recurring expenses like OTT subscriptions, utility bills, EMIs, or SIP investments will no longer process randomly throughout the day. Starting August 1, 2025, these transactions are restricted to non-peak hours, specifically before 10:00 AM, between 1:00 PM and 5:00 PM, or after 9:30 PM. This change aims to distribute network traffic evenly, reducing delays and failed transactions during busy daytime hours. For users, this means your scheduled payments may process at different times than before, but the change is largely behind-the-scenes and won’t require action unless you manage business-related autopay collections.

Note: If an autopay transaction fails, the system will retry up to three times before canceling, ensuring fewer disruptions.

4. Pending Transaction Status Checks Limited to Three Attempts

Checking the status of pending or stuck transactions has also been restricted. Users can now check a transaction’s status only three times per transaction, with a mandatory 90-second gap between attempts. Additionally, UPI apps are now required to provide near-instant updates on transaction success or failure, reducing the “processing” limbo that frustrates users. This change, coupled with the recipient’s registered name being displayed before each transaction, enhances clarity and helps prevent fraud or payments to incorrect recipients.

Impact: If your payment is stuck, resist the urge to repeatedly check its status, as you’ll quickly hit the three-attempt limit.

5. No Changes to Transaction Limits

The NPCI has clarified that the core UPI transaction limits remain unchanged. Users can still transfer up to ₹1 lakh per day for most peer-to-peer (P2P) and peer-to-merchant (P2M) transactions, with a maximum of 20 transactions daily. Higher limits apply for specific categories: up to ₹2 lakh for capital markets, insurance, and foreign remittances, and up to ₹5 lakh for tax payments, hospitals, educational institutions, and IPOs. New users face a temporary ₹5,000 daily limit for the first 24 hours after registration. UPI Lite, designed for small-value transactions, now supports up to ₹1,000 per transaction (up from ₹500) with a wallet balance limit of ₹5,000 (up from ₹2,000), but the daily transaction cap remains ₹4,000.

Business Users: Businesses using PhonePe or other platforms can handle unlimited transactions with higher limits, subject to NPCI approval and KYC verification.

6. Interchange Fees for PPI Transactions

While UPI transactions via bank accounts remain free for P2P and P2M payments, transactions above ₹2,000 made through Prepaid Payment Instruments (PPIs) like PhonePe, Paytm, or Amazon Pay wallets incur interchange fees of 0.5% to 1.1% for merchants, depending on the service (e.g., 0.5% for fuel, 0.9% for supermarkets, 1% for insurance). Users won’t face these fees directly, but merchants may adjust pricing to account for them. No GST is currently applied to UPI transactions, though discussions about an 18% tax on small transactions are ongoing.

What This Means for Users

For casual UPI users, these changes are unlikely to cause major disruptions. The average user doesn’t check their balance 50 times a day or view linked accounts 25 times, so the limits target heavy users or potential system misuse by bots. The fixed autopay timings and faster transaction status updates should improve reliability, especially during peak hours when delays are common. However, frequent users or businesses relying on UPI for high-volume transactions should plan around these restrictions to avoid hitting caps.

Pro Tip: To stay within limits, use one primary UPI app for balance checks and account views, and verify recipient details carefully to avoid failed transactions. Check your bank’s specific UPI limits, as some (e.g., IDFC Bank) impose lower daily (₹25,000–₹1 lakh), weekly (₹1 lakh), or monthly (₹30 lakh) caps.

Why These Changes?

The NPCI introduced these rules in response to complaints about transaction delays and failures, particularly in April and May 2025, when system overloads spiked due to excessive balance checks and status tracking. With UPI handling over 11 billion transactions monthly, these measures aim to ensure stability and security as India’s digital payment system continues its record-breaking growth. The Transaction Credit Confirmation (TCC) system, effective February 15, 2025, further streamlines chargeback processing, reducing disputes and manual intervention.

Looking Ahead

The new UPI rules are a step toward a more robust and efficient payment ecosystem. While they require minor adjustments for some users, the focus on reducing system congestion and enhancing security benefits everyone. As UPI continues to dominate India’s digital payments, with global expansion to countries like France and the UAE, staying informed about these changes ensures seamless transactions. For the latest updates, check your UPI app’s notification section or the official NPCI website.

Sources: India Today, The Economic Times, Hindustan Times, Techlusive, Moneycontrol