UPI rule changes from August 1 include balance check limits, new trading hours, auto-pay restrictions, and more
From August 1, the government and regulatory agencies will introduce major changes to the United Payments Interface (UPI) and trading operations. The updates will extend to daily transactions on popular UPI modes such as PhonePe, Google Pay, and PayTM. Together with this, trading operations, especially in market repo and Tri-Party Repo (TREP), will also see a change. The aim is to make backend processes smoother, de-congest peak hours, and enhance transparency. Here is a simple rundown of all the rule modifications becoming effective.
Users of UPI can now inquire about their bank balance up to 50 times a day and this is done to minimize repeated backend calls and effectively manage server load.
Automatic transactions like SIPs and streaming subscriptions will only be processed outside of specified peak hours, and the peak hours are 10 am to 1 pm and 5 pm to 9:30 pm but this adjustment ensures more even distribution of the transaction load.
Banks will be required to provide real-time balance updates following every UPI transaction, but this action eliminates the need for manual balance checks by users, which is more convenient and transparent.
Repo and TREP market trading will now close at 4 pm from August 1, instead of 2:30 pm. It gives more convenience for financial institutions and investors.
A significant upgrade to be deployed by August 31 will enable users to connect pre-approved credit lines secured by FDs, bonds, gold, or other collateral to UPI. Upon launch, users can conduct peer-to-peer (P2P), merchant (P2M), and cash transactions with predetermined daily limits: ₹1 lakh for payments, ₹10,000 for withdrawals in cash, and a maximum of 20 P2P transfers.
The customer will be restricted to check the status of their bank account only 25 times per day via a UPI app and this limit is meant to manage unnecessary load on banking systems.
UPI service providers will not immediately confirm transaction status rather; there will be a small delay before confirming success or failure and this stabilises real-time systems during peak times.
These enhancements embody a strategic effort to cut technical stress and enhance UPI system stability as India's digital economy continues to expand, such developments will provide enhanced smoothness in operations and improved user experience across fintech platforms.
