UPI has become an integral part of India’s daily transactions. Gone are the days when we were reluctant to go out without our wallets. Now, it’s all scan and go. From splitting dinner bills to paying utility bills, it’s the go-to solution for everyone in 2025.
But starting August 1, 2025, UPI will undergo some key changes. These updates are not UPI 3.0 and aren’t just about fine-tuning the system; they’re designed to make UPI faster, safer and more efficient.
And some of these changes are relevant, even if you don’t use UPI much these changes will shape the way you make payments.
Take a stroll with us, as we prepare you to be ready for these updates and benefit best from them.
The Balance Check Limit Trouble
For many, checking their bank balance multiple times a day is a habit they can’t shake off. Hey, we understand. If you are on a tight budget or have a continuous flow of cash in your account, it can be necessary.
Regardless, with the upcoming UPI updates, there’s going to be a limit to how many times you can do it.
| Starting August 1, you’ll only be able to check your balance 50 times and 25 account listings per app, per day |
Yes, you read that right. But the silver lining is, if you’re someone who uses more than one UPI app, this limit will apply to each app separately. This change helps the system run faster and smoother by reducing extra requests.
It’s a small change, but the idea behind it is simple: reduce unnecessary background checks that can overload the system. So, before you hit that ‘check balance’ button for the third time in an hour, pause for a moment.
This aims to streamline the system for everyone’s benefit.
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AutoPay Changes: Watch Out For Missing Payments
Autopay users might have had this trouble before. You see, unlike normal UPI transactions, we don’t really have any control over the autopay feature other than turning it on or off.
So, what could you do if your autopay feature faces a failure in a transaction due to heavy load on the server during peak hours? I mean, you can’t reinitiate the process now, can you? And just like that, everything is a mess for you and UPI.
This update is focused on making such errors less frequent and promoting a smoother and more robust system.
| Starting August 1, AutoPay transactions will only be processed during specific time slots: before 10 AM, between 1 PM and 5 PM and after 9:30 PM. |
This change aims to improve performance during peak hours and make your life a bit easier.
For example, if your UPI bill payment was due at 11 AM, it might get processed a little earlier or later than you’re used to.
This update is followed by another significant fix Each AutoPay mandate will be limited to a maximum of 4 attempts (1 original + 3 retries), reducing the chances of failed transactions during peak periods.
So, it’s a good idea to set up a reminder or check your payment due dates in advance. This change is all about ensuring smoother transactions and less congestion during peak hours.
Fewer Checks For Transaction Failures
Have you ever had that rush of mixed emotions when you have had a failed UPI transaction? It might be due to server load or internet issues. While the app is struggling to complete the action without any loss, many might try again or retry checking the status, adding more commands and rushing.
Well, starting August 1, the process of checking the status of a failed transaction is going to be a bit more limited.
| You’ll only be able to check the status of a failed transaction three times a day, with a 90-second gap between each attempt. |
Why the change?
It’s to reduce system congestion and speed up the process for everyone else. So, if your payment fails, take a deep breath. Check the status once, wait for a bit and then check again if needed.
It’s a small adjustment rather than an update, but it will help the system run smoother.
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Payment Reversal Request Limits And Reduced API Response Time
We have all faced those times when the UPI is slow or not giving any response for our transactions. This update will please the disappointed.
| UPI APIs now need to respond within 10 seconds, down from the previous 30-second window. |
You don’t have to dive into what an API is. But simply put, this change improves UPI’s performance, especially during high-traffic periods.
There will also be a payment reversal request cap.
| NPCI is capping the number of payment reversal requests a user can make, which is at most 10 requests in 30 days (with no more than 5 involving the same sender) |
The goal behind this update is to reduce the misuse of the payment reversal feature. By raising a payment reversal feature, the user could claim back the money sent if the case was proven genuine. However now, by setting these limits, NPCI aims to ensure that reversals are used only when necessary, improving overall system efficiency.
Inactive UPI Deactivation and Stricter Account Verification
To fight and ward off fraud, the NPCI has launched the update of the inactive UPI deactivation update and will be in full effect since 1st August 2025. The update is as follows:
| A UPI ID linked to a mobile number remains inactive for more than 12 months, it will be automatically disabled. |
This is primarily to prevent misuse when mobile numbers are reassigned to new users. It’s an important step towards ensuring that UPI accounts remain active and secure, reducing the risk of fraudulent transactions linked to outdated numbers.
To counteract fraud and potential misusers, NPCI has further planned a Bank account verification makeover.
| From August 1, any new bank accounts added to UPI will undergo enhanced verification. |
This means stronger authentication processes before users can start making transactions through their UPI-enabled apps.
Your Recipient’s Name Will Now Always Appear
Some of us must have that friend who has sent money to the wrong person by mistake, at least once. In a global context, it happens more often than you think.
Well, that’s about to become a thing of the past with the new UPI security features in 2025.
| The recipient’s registered name (as per their bank records) will now appear before every payment confirmation. |
This simple feature helps ensure that you’re sending money to the right person and reduces fraud risks. Although in effect since June 30, 2025, this is being continuously emphasised as a key security feature by NPCI.
This isn’t just a cosmetic change. It’s a major win for security, making UPI payments much safer for everyone. You’ll never have to second-guess if you’re sending money to the right account again.
Simple yet powerful, won’t you agree?
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UPI Credit: Possibility For a Revolution?
This one is an exciting update. You know how people have credit accounts and debit accounts, but can only use UPI on debit accounts? Well,
| Starting August 31, 2025, UPI will allow users to link pre-approved credit lines to make payments. |
This means you’ll be able to make UPI payments even if you don’t have enough funds in your bank account, as long as you have a credit line backed by assets such as fixed deposits or gold, is linked.
This new feature opens up amazing possibilities, especially for big payments like travel bookings or emergency expenses.
However, keep in mind that these credit lines will have certain limits. So while it offers flexibility, it also ensures that you don’t overspend. This could revolutionise how you use UPI, making it even more versatile.
But this can also mean potential over expense for some people. So, beware of your income and outgoes. Treat credit accounts with extra care than your debit accounts.
What’s Staying the Same?
While there are many exciting changes, some things won’t be receiving any change.
For example,
- The transaction limit for most UPI transactions remains at ₹1 lakh, with certain categories like healthcare and education still being at ₹5 lakh.
- The daily limits for P2P transfers will also remain at 20 transfers per day.
So, while there are updates coming, the core functionality of UPI will remain largely unchanged.
You can still send and receive payments just like before, but with a more efficient and secure system backing it up.
Final Thoughts
The upcoming changes to UPI are all about improving efficiency, security and user experience. While these updates might take a little getting used to, they are ultimately going to make the system faster, safer and more reliable.
You could even consider these changes as stepping stones in the way of UPI 3.0. So stay informed, keep your UPI apps updated and adjust your habits as finance demands.
It’s all about making your digital payments smoother and more secure. And you should be about being informed and making a definitive decision when it comes to your finances.
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