New Delhi — The National Payments Corporation of India (NPCI) is gearing up to roll out a set of performance-boosting changes to the Unified Payments Interface (UPI) system starting June 16, with further enhancements scheduled for implementation from August 1. These updates are aimed at improving the speed, efficiency, and user experience for UPI users across India.
UPI Transactions to Become Faster From June 16
In a circular dated April 26, 2025, NPCI announced that efforts are underway to reduce the response time of UPI transactions, benefiting remitter banks, beneficiary banks, and Payment Service Providers (PSPs) such as PhonePe, Google Pay, Paytm, and others.
“These revisions are intended to improve the customer experience,” the circular stated. NPCI has directed all UPI ecosystem members to revise their internal systems and ensure that transaction responses are handled within the updated timeframe.
Members have also been asked to coordinate any necessary configuration changes with their partners and merchants to ensure seamless integration.
Major UPI Usage Policy Changes from August 1, 2025
As per a follow-up circular dated May 21, 2025, NPCI has listed new restrictions and guidelines for PSP and acquiring banks to moderate API requests and ensure optimal usage. The key changes include:
✅ Balance Enquiry Limit
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Limit: 50 balance checks per user per day.
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Purpose: To prevent overuse and reduce system load.
✅ List Account Requests
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Limit: 25 account listing requests per app per user per day.
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Functionality: Helps users view all accounts linked to their mobile number.
✅ Autopay Mandate Execution
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Attempts Allowed: 1 initial attempt + 3 retries per mandate (per sequence number).
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Execution Time: Only during non-peak hours.
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Defined Peak Hours:
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Morning: 10:00 AM to 1:00 PM
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Evening: 5:00 PM to 9:30 PM
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NPCI has instructed all member banks and PSPs to comply with these changes by July 31, 2025, and circulate the guidelines to relevant stakeholders and technical partners.
Why These Changes Matter
The UPI ecosystem has witnessed explosive growth, handling billions of transactions monthly. These fine-tuned regulations aim to:
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Minimize transaction delays.
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Curb misuse of system resources.
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Enhance user confidence and system stability.
By enforcing stricter limits and ensuring smarter backend optimization, UPI aims to continue delivering seamless financial experiences to over 200 million users.
