Big changes in UPI Payment; New rules to come into effect from June 30

In the age of Digital India, the Unified Payments Interface (UPI) has emerged as a cornerstone of the country’s cashless economy. With increasing reliance on digital transactions, nearly 60 to 70 percent of Indians now use UPI regularly through popular apps like Google Pay, PhonePe, and Paytm.

However, significant changes are on the horizon. The National Payments Corporation of India (NPCI) has introduced a series of new regulations aimed at enhancing security and improving system efficiency. These changes are set to take effect from June 30, 2025, and will impact how users interact with UPI-based services.

Key Changes Coming to UPI

1. Real Names Will Replace Nicknames in Transactions

To curb fraud and misleading payment identifiers, the NPCI has directed all banks and payment service providers to eliminate the use of nicknames or phone-saved names during UPI transactions. Going forward, users will see only the official bank-registered name of the recipient. This move is expected to prevent fraud through fake QR codes and aliases, thus improving trust and transaction transparency.

2. Control Over Frequently Used APIs

NPCI has instructed banks and service providers to regulate the top 10 most-used Application Programming Interfaces (APIs) to ensure better load management and system reliability. The deadline to implement this directive is July 31, 2025.

Balance Check Limits and Autopay Restrictions

3. Daily Limit on Balance Checks

Starting August 1, 2025, UPI users will be restricted to checking their bank account balance only 50 times per day across apps like PhonePe, Paytm, and Google Pay. This decision comes in response to system slowdowns caused by excessive balance inquiries.

To address the need for regular updates, banks will now be required to send daily balance notifications to customers after each day’s transactions. Failure to comply with this rule may result in strict action against the banks.

4. Scheduled Autopay Transactions

Autopay features for services like SIP investments, Netflix subscriptions, and other recurring payments will now be processed only during designated non-peak hours. These time windows are:

• 10:00 AM to 1:00 PM

• 5:00 PM to 9:30 PM

This measure is designed to ease the burden on servers during peak usage hours and ensure smoother processing of automated payments.