Just a few days after street vendors in Bengaluru were hit with hefty GST bills, prompting many shopkeepers to shun UPI in favor of traditional cash payments, the National Payments Corporation of India (NPCI) has announced new guidelines for the Unified Payments Interface (UPI) system, effective August 1, 2025.
Aimed at enhancing stability and efficiency during peak usage, these updates introduce restrictions on key features like balance inquiries, transaction status updates, and AutoPay to alleviate strain on the UPI network.
While everyday transactions, such as paying at local shops, are unlikely to be affected, the new rules impose limits on specific functions to optimize system performance. With UPI handling nearly 16 billion transactions monthly, NPCI is focused on improving reliability following recent service disruptions driven by overwhelming API traffic.
Key Changes in the UPI Update
Daily Balance Inquiry Limit
Users will be restricted to 50 account balance checks per day per UPI app to curb excessive API requests.
Linked Bank Account Info
Access to details of bank accounts linked to a mobile number will be limited to 25 times daily.-
Auto-Debit Time Windows
Recurring payments, such as subscriptions or mutual fund SIPs, will only be processed during low-traffic hours—before 10 AM, between 1 PM and 5 PM, or after 9:30 PM.
Transaction Status Checks
Users can check the status of pending transactions three times, with a mandatory 90-second gap between attempts.
Why the Changes?
The UPI system has been under immense pressure due to its massive transaction volume, with outages reported in April and May 2025. NPCI pinpointed repetitive API calls, such as frequent balance checks and transaction status refreshes, as major contributors to system overload.
These new measures aim to streamline operations and reduce disruptions, ensuring a seamless experience for millions of UPI users across India.Coming at a time when Bengaluru’s street vendors are reverting to cash due to GST-related concerns, these restrictions may further challenge UPI’s dominance in India’s digital payment landscape. NPCI assures that the updates will strengthen the UPI infrastructure, but users and merchants may need to adapt to the new limits. For more details, visit the NPCI website.
Naorem Mohen is the Editor of Signpost News. Explore his views and opinion on X: @laimacha.
Naorem Mohen
View More PostsNaorem Mohen is the Editor of Signpost News. Explore his views and opinion on X: @laimacha.
