New Delhi: India’s Unified Payments Interface (UPI), the most widely used digital payment system in the country, is set for a significant transformation from August 1, 2025. The National Payments Corporation of India (NPCI), which oversees the UPI framework, has introduced a fresh set of rules to reduce network congestion, prevent misuse, and enhance the efficiency of transactions. These changes come after growing complaints of failed payments and system lags, especially during peak hours.
One of the most noticeable changes is the restriction on balance checks. From August 1, users will be allowed to check their bank account balance a maximum of 50 times per day per UPI app. Once this limit is crossed, the balance enquiry option will be locked for 24 hours on that particular app. This move is expected to prevent unnecessary API requests that were reportedly overloading the UPI network.
Additionally, the number of times a user can view their linked bank accounts on any UPI app will be limited to 25 times per day. This too is aimed at reducing the stress on backend systems caused by repetitive and avoidable requests.
To reduce the need for frequent balance enquiries, UPI apps will now automatically show the updated balance immediately after a successful transaction. This feature will give users real-time clarity on their remaining funds and limit the urge to repeatedly check balances manually.
Another key change relates to status updates of pending transactions. Users will now be allowed to refresh the status of a pending transaction only three times, with a minimum gap of 90 seconds between each attempt. This rule is intended to discourage impatient, frequent attempts that end up overburdening the servers.
AutoPay, which includes scheduled payments such as EMIs, subscriptions, and recurring donations, will now be restricted to specific time windows outside peak hours. By doing this, NPCI hopes to spread out traffic more evenly throughout the day and reduce pressure during high-volume periods like evenings and mornings.
Despite the new operational restrictions, transaction value caps remain unchanged. The maximum limit for a single UPI payment continues to be ₹1 lakh for general use and ₹5 lakh for categories such as medical and educational expenses. Also, no GST or transaction fee will be imposed on UPI payments, maintaining the zero-cost model that has made it popular among all income groups.
These changes are not expected to significantly affect the average user who performs a limited number of daily transactions. However, heavy users, such as small business owners, service providers, and people managing multiple accounts, may have to adjust their usage habits. Those relying on UPI for frequent balance checks or high-volume operations will need to use these features more judiciously.
This overhaul is a response to system slowdowns and payment failures that escalated in early 2025, particularly in April. Investigations revealed that excessive API calls—many of them unnecessary were straining the system. By capping such actions and encouraging more mindful usage, NPCI hopes to restore transactional speed, stability, and user confidence in UPI.
As India continues to evolve as a digital-first economy, maintaining the resilience and reliability of its payment infrastructure is critical. These reforms, while minor in appearance, mark a major step towards ensuring that UPI remains robust, efficient, and accessible for the nation’s growing user base. Users are advised to familiarize themselves with the new rules before they take effect on August 1, 2025, to avoid inconvenience and make the most of UPI’s ever-expanding ecosystem.