New UPI Rules 2025: How NPCI’s August 1 Changes Affect Google Pay, Paytm, PhonePe Users

Mumbai, August 1, 2025 – Starting today, millions of Indians using UPI apps like Google Pay, Paytm, and PhonePe must adapt to significant rule changes mandated by the National Payments Corporation of India (NPCI). The new guidelines, detailed in NPCI’s June 2025 circular (Ref: NPCI/UPI/OC No. 19/2025-26), introduce revised transaction limits, balance-check restrictions, and enhanced security protocols for the world’s largest real-time payment system handling over 11 billion monthly transactions.

Key Changes in UPI Rules Effective August 1, 2025

The NPCI’s overhaul targets three critical areas of UPI usage:

Revised Transaction Limits

• Daily merchant payments (without PIN) capped at ₹5,000 per transaction
• Cumulative daily spending limit reduced to ₹1 lakh for non-banking UPI apps
• Peer-to-peer (P2P) transfers remain unchanged at ₹1 lakh per transaction

Balance Enquiry Restrictions

• Users limited to five balance checks per day across all UPI apps
• Additional checks will incur ₹1.50 per inquiry after the fifth attempt
• Banks must implement “balance check counters” in app interfaces (RBI Notification 15/2025)

Enhanced Security Protocols

• Mandatory 72-hour cooling period for UPI ID changes
• Biometric authentication for transactions above ₹5,000 on new devices
• Auto-deactivation of inactive UPI IDs after 180 days

Impact on Popular UPI Platforms

Major apps have rolled out updates to comply with the NPCI directives:

Google Pay

• Introduced “Limit Tracker” dashboard showing remaining daily quota
• Balance-check counter visible beside account number
• Pop-up warnings for cooling period restrictions

Paytm

• Added ₹1 lakh spending meter for non-banking transactions
• Voice-assisted balance inquiry counter
• Enhanced fraud detection algorithms

PhonePe

• Implemented “Spend Analyzer” for transaction categorization
• Biometric prompts for high-value transfers
• In-app notifications about inactive ID deactivation

Why NPCI Introduced These Changes

According to RBI’s 2024 Digital Payments Security Report, UPI fraud cases increased by 28% year-over-year. The NPCI stated these measures aim to:

1. Reduce server overload caused by excessive balance checks
2. Mitigate phishing and social engineering scams
3. Encourage responsible digital payment habits
4. Prepare infrastructure for projected 20 billion monthly transactions by 2026

Payment expert Dr. Ananya Sharma (IIM Ahmedabad) notes: “The balance inquiry limits address a critical pain point – during peak hours, 40% of banking server capacity was consumed by balance checks alone. These changes will streamline operations while pushing users toward monthly statements for expenditure tracking.”

The UPI new rules 2025 represent a necessary evolution for India’s digital payment ecosystem. While initial adjustments may challenge casual users, these measures fortify the system against fraud and technical overload. Google Pay, Paytm, and PhonePe users should review their transaction patterns immediately and enable biometric authentication where available. For clarification on individual limits, contact your bank’s UPI support desk or visit the NPCI’s official portal.

Must Know

What happens if I exceed 5 balance checks?
After five free daily balance inquiries, ₹1.50 will be deducted per additional check from your linked bank account. This applies cumulatively across all UPI apps. NPCI recommends using SMS banking or net banking for frequent balance monitoring.

Do UPI rules apply uniformly across banks?
Yes. All banks and UPI apps must implement NPCI’s August 1 guidelines. However, some banks like SBI and HDFC may impose stricter internal limits. Check your bank’s website for specifics.

Can I increase my transaction limits?
Higher limits are available only through banking UPI apps (like iMobile or Yono) after submitting income documents. Non-banking apps (Google Pay, PhonePe) remain capped at ₹1 lakh/day for merchant payments.

How does the 72-hour cooling period work?
When changing your UPI ID or linked mobile number, all transaction capabilities will be suspended for 72 hours. Essential services like balance checks remain available during this security hold.