New UPI Usage Guidelines to Take Effect from August 1: NPCI Sets Limits to Ease Server Load

The National Payments Corporation of India (NPCI) has issued fresh guidelines for the usage of Unified Payments Interface (UPI) and Application Programming Interface (API) to enhance digital payment efficiency and reduce server congestion. The directive was issued on May 21, 2025, and will be enforced from August 1, 2025. All banks and UPI app providers must comply with the new rules by July 31, 2025.

Key Changes Introduced:

NPCI has implemented technical and operational controls to streamline UPI usage by Payment Service Provider (PSP) banks and acquiring banks. The focus is on reducing misuse and ensuring system stability. Important highlights include:

• Daily Transaction Limits:
  • Balance Checks: Capped at 50 times per day per app.
  • Linked Account Views: Restricted to 25 times per day per app.
  • Transaction Status Checks: Allowed only 3 times, with a 90-second gap between each.
• AutoPay Time Slots:
  • Allowed: Before 10:00 AM, between 1:00 PM–5:00 PM, and after 9:30 PM.
  • Not Allowed: Between 10:00 AM–1:00 PM and 5:00 PM–9:30 PM.
• API Control Measures:
  • UPI apps must restrict automated background API requests unless triggered directly by users.
  • The “List Verified Merchants” API can be accessed only once daily, during non-peak hours, and must fetch at least 1,000 entries to reduce server hits.
  • The “Penny Drop” API must comply with the Digital Personal Data Protection Act, 2023, requiring user consent and a dedicated UPI ID (MCC 7413).
  • The “ValCust” API will be regulated for tasks like IPO PAN validation and foreign remittance onboarding to avoid overload.

Enforcement and Penalties:

Non-compliance may result in penalties, restricted API access, or suspension of new user onboarding. NPCI’s goal is to improve UPI system performance, reduce transaction failures, and maintain fast service for millions of daily users.

Regular users do not need to make any manual changes. UPI apps will update these settings automatically to ensure uninterrupted service.

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