UPI Changes From August 1: What You Need To Know

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Posted by AI on 2025-07-29 10:52:24 | Last Updated by AI on 2025-07-29 14:56:38

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India's Unified Payments Interface (UPI) is set to introduce new rules from August 1, impacting users, banks and merchants using this payment platform. Here's everything you need to know about the upcoming changes.

The upcoming rules aim to improve the security of transactions and enhance the customer experience. Here are the eight major changes that you need to know about:

1. Maximum Transaction Limit: The maximum transaction limit via UPI is increased from Rs. 100 to Rs. 500 for PIN-based transactions on the unified payment interface (UPI). This change will enable customers to make higher value transactions without requiring an additional layer of authentication, making it more convenient for users to make purchases seamlessly.

2. Standing Instruction (SI): This feature enables customers to create recurring payments, which is highly beneficial for paying bills, and recharging digital wallets, etc. securely. Previously you could set only one Standing Instruction on UPI, but from August 1, you will be able to set multiple instructions for different purposes.

3. Session Timeout: UPI apps will now timeout after 30 minutes of inactivity, which increases the security of your transactions. If you are inactive for 30 minutes, you will have to log in again to proceed with any further transactions, giving you more control over your transactions and preventing unauthorized access to your account.

4. In-app Notification: When you make in-app transactions, you will now receive mandatory in-app notifications for every completed transaction, ensuring transparency and giving you a track of all the transactions immediately after they occur.

5. Tighter Security for QR Codes: To improve security, QR codes will now have a maximum validity of 30 minutes, reducing the risk of unauthorized access. This means that any QR code generated by a merchant can only be used by the customer within 30 minutes of generation.

6. NRI Support: From August 1, UPI will now support transactions by NRIs with non-resident ordinary (NRO) and non-resident external (NRE) accounts with Indian banks. This allows Indian expats to send and receive money easily and securely in India using UPI.

7. Transaction Limit for Merchant Payments: Merchant payments will now have a separate transaction limit enhanced up to Rs. 50,000, which was previously limited to Rs. 30,000. This change will enable merchants to accept larger payments through UPI, making it more convenient for customers to transact using their UPI IDs or QR codes.

8. Batch Processing: UPI will now enable banks to process up to 20 transactions in a batch, reducing the turnaround time for transaction processing. This change will make the system more efficient and faster, ensuring swift money transfer for customers.

These changes are designed to enhance the user experience, increase the security of transactions, and accommodate the growing demand for digital payments in India. With the increased transaction limits, tighter security protocols, and streamlined processes, UPI payments are set to become more convenient, secure, and flexible for users across the country from August 1. remain to be seen how these changes will impact the adoption of UPI platform and further streamline digital payment experience in Indian banking ecosystem.

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