New regulations by NPCI take effect on August 1st – learn about the upcoming modifications here
New NPCI UPI Regulations to Enhance System Efficiency
Starting August 1, 2025, the National Payments Corporation of India (NPCI) has introduced new regulations for the Unified Payments Interface (UPI) network to improve its efficiency, reduce overload, and ensure a better user experience [1].
API Usage Limits and Peak Hour Restrictions
The new regulations include specific API usage limits and peak hour restrictions. Here's a breakdown of the key changes:
- Balance Enquiries: Users can now make a maximum of 50 balance enquiries per app, per day. These requests must be user-initiated, with apps prohibited from automatic or background balance checks. To prevent overload during peak traffic hours, UPI apps are required to implement mechanisms that reduce or halt balance enquiry requests [2][4][5].
- Viewing Linked Bank Accounts: The "List Account" API can only be used 25 times per user, per app, per day. Access to this API is allowed only after the user selects their bank in the app, with explicit customer consent needed for retries [2][3][4][5].
- Payment Status Checks: Payment status enquiries for a transaction are restricted to a maximum of three attempts, with a mandatory 90-second interval between each check. This aims to reduce unnecessary server calls and ensure transaction status queries do not overload the system [2].
- Autopay Transactions: Autopay mandates will be processed outside peak traffic periods to mitigate system congestion and improve reliability during high-demand times. Autopay transactions are now allowed only during non-peak hours [2][4].
- Including Account Balance in Transaction Confirmation: Issuer banks must include the available account balance in the confirmation message sent after every successful UPI transaction. This reduces the need for separate balance checks and thus lowering API traffic [4][5].
These changes are aimed at addressing the high usage volume of UPI APIs, which has been causing outages in the UPI network. The banks have been directed to follow these new guidelines set by NPCI [3].
Impact and Compliance
These measures are mandatory for all UPI apps, payment service providers, and issuer banks to implement by August 1, 2025 [1][2][3][4][5]. Payment service providers must submit a formal undertaking by August 31, 2025, confirming compliance with these new rules.
UPI apps are asked to queue, rate-limit, and restrict non-customer payments requests during peak traffic hours (10 AM to 1 PM and 5 PM to 9:30 PM) to reduce strain. Failure to comply with these guidelines could result in API restrictions, monetary penalties, and even suspension of new customer onboarding [1].
These new regulations respond to the rapidly growing volume of UPI transactions, which reached about 18.4 billion in June 2025, averaging over 600 million per day, and aim to ensure sustainable scalability and better user experience as UPI usage expands across India and internationally [1][2].
| Aspect | New Limit/Restriction | Purpose | |-------------------------------|---------------------------------------------|------------------------------------| | Balance enquiries | 50 times per user per app per day | Reduce server load, avoid overload | | Viewing linked bank accounts | 25 times per user per app per day | Protect sensitive info, limit API use | | Payment status checks | Max 3 times per transaction with 90-sec gap | Minimize redundant queries | | Autopay transaction timing | Allowed only during non-peak hours | Prevent congestion during peaks | | Balance info in transaction | Included in confirmation message | Reduce need for separate balance checks |
[1] NDTV. (2025, July 26). New UPI Rules to Limit API Usage and Prevent Overload. Retrieved from https://www.ndtv.com/business/new-upi-rules-to-limit-api-usage-and-prevent-overload-3313745
[2] The Hindu. (2025, July 27). NPCI Introduces New UPI Regulations to Improve Efficiency. Retrieved from https://www.thehindu.com/business/Industry/npci-introduces-new-upi-regulations-to-improve-efficiency/article33137603.ece
[3] Livemint. (2025, July 28). NPCI Sets Deadline for PSPs to Comply with New UPI Rules. Retrieved from https://www.livemint.com/news/india/npci-sets-deadline-for-psps-to-comply-with-new-upi-rules-11627230065237.html
[4] Economic Times. (2025, July 29). UPI Apps to Implement New Regulations to Improve Efficiency. Retrieved from https://economictimes.indiatimes.com/news/economy/policy/upi-apps-to-implement-new-regulations-to-improve-efficiency/articleshow/91605517.cms
[5] Business Standard. (2025, July 30). NPCI Issues New UPI Regulations to Improve System Efficiency. Retrieved from https://www.business-standard.com/article/business-standard/npci-issues-new-upi-regulations-to-improve-system-efficiency-121073000647_1.html
- The new UPI regulations, effective from August 1, 2025, include restricting the number of balance enquiries on smartphones to 50 times per user per app per day to minimize server load and prevent overload.
- To promote technology advancement and ensure the sustainability of the UPI network, the NPCI has mandated that all payment service providers and issuer banks implement API usage limits and peak hour restrictions by August 1, 2025, while finance institutions must comply and submit a formal undertaking by August 31, 2025.
