New UPI Rules 2025

Starting From 1st-Aug; Everything Explained in Simple Terms…

What is UPI?

The Unified Payments Interface or UPI is a payment system developed by the National Payments Corporation of India – NPCI helps in sending and receiving money instantly through mobile phones.

Whether for online shopping, bill payments or peer to peer transfers. UPI has become India’s most trusted digital payment method.

Also Read: UPI Rules 2025: UPI में बड़ा बदलाव, अब कितना पैसा भेज सकते हैं एक बार में ?

 

What Is PPI in UPI?

PPI stands for Prepaid Payment Instrument. This is a digital tool that stores money and allows quick online transactions. It works like a wallet. Some common examples are

• PhonePe Wallet

• Paytm Wallet

• Amazon Pay

• Freecharge Wallet

• SODEXO Vouchers

• Prepaid Gift Cards and Smart Cards

When a transaction is made using one of these wallets by scanning a UPI QR code, the payment is processed via PPI. This method is useful for regular payments without using a bank account directly.

 

UPI Digital Transaction Rules

UPI has completely transformed digital payments in India. Digital transactions are expected to be even more secure, efficient and manageable with these new rules coming into effect from 1st-Aug-2025.

Whether for personal use or business purposes these changes bring more clarity and control to digital payments.

 

New UPI Rules 2025: Starting from 1st-Aug

The NPCI has announced new UPI rules to make payments safer and smoother. These changes will apply to all UPI enabled apps like –

• Google Pay

• PhonePe

• Paytm

• BHIM

Also Read: 12 percent GST Slab set to Scrap: Impact on Everyday Spending, Cheaper or Costlier

 

Changes to be incorporated in

• Balance Check Limit: Only 50 balance checks allowed per UPI app each day. After that the app will block further checks for 24 hours.

• Auto-Balance Display: After each successful UPI payment, the remaining account balance will appear on-screen automatically.

• Account Linking Limit: A maximum of 25 bank accounts can be linked in one day per UPI app.

• Transaction Status Checks: A pending transaction can only be checked three times, with a 90-second gap between each check.

• Auto-Debit Timings: Auto-debits such as EMIs, subscriptions and SIPs will only be processed before 10:00 a.m. or after 9:30 p.m.

• Payee Name Display: Before sending money, UPI apps will now show the receiver’s bank-registered name to reduce fraud and errors.

 

UPI Transaction Limits Per Day in 2025

Each bank inside the UPI network decides its own daily limit for transactions. But overall the standard UPI daily limit remains Rs. 1 lakh as set by the NPCI.

Higher Limits for Special Payments

Some transactions are allowed higher amounts than the regular Rs. 1 lakh limit

• Applicable Up to Rs. 2 lakh for-
  • Stock market investments
  • Insurance premium payments
  • Business collections
  • Foreign inward remittance settlements

 

• Applicable Up to Rs. 5 lakh for-
  • Tax payments
  • Educational institution fees
  • Hospital and medical bills
  • IPO applications
  • RBI Retail Direct investments

 

Note: Different banks may have their own limits. Some banks may set UPI caps on a weekly or monthly basis instead of daily.

For example: A bank may allow only Rs. 25,000 per day or Rs. 2 lakh per month based on its internal risk rules.

 

Why these changes matter

The UPI system has grown rapidly, with over 12 billion transactions happening each month (As per NPCI statistics). With such high usage the system needs stronger rules to –

• Support seamless transactions and prevent overloads and technical issues

• Reduce the chance of fraud and errors

• A more seamless and transparent payment experience

These rule updates are focused on improving safety while making UPI even more user friendly.

 

Bank Specific UPI Daily Limit

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