Digital payments in India are taking a giant leap forward with a fresh set of updates designed to make UPI transactions more secure, efficient, and user-friendly. The new rules for UPI and UPI apps coming into effect in 2025 aim to fix loopholes, limit misuse, and reinforce trust in India’s favorite digital payment system.
Let’s explore what’s changing, how it affects you, and what steps you need to take to stay ahead.
Introduction – The UPI Evolution in 2025
India’s digital payment ecosystem is evolving rapidly, and 2025 brings significant updates to UPI platforms that aim to boost security and streamline transactions. These enhancements are being introduced by the National Payments Corporation of India (NPCI) and the Reserve Bank of India (RBI), targeting vulnerabilities and optimizing user experience across platforms.
In this article, we’ll explore the key changes to UPI regulations, when they’re taking effect, and what users must do to avoid service disruptions..
Mobile Number & UPI ID Management (From April 1, 2025)
Dormant Numbers and Inactive UPI IDs
From April 1, UPI IDs associated with dormant or inactive mobile numbers will be automatically deactivated. If your registered mobile number has been surrendered or recycled, you might lose access to UPI services unless you update your bank records.
Importance of Regular Mobile Number Updates
Users must keep their mobile numbers active and updated across all banking and UPI platforms. This ensures uninterrupted access and avoids the risk of fraudulent access if someone else gets your recycled number.
Role of MNRL and DIP in Fraud Prevention
To support this, banks are now required to verify mobile numbers weekly using the Mobile Number Revocation List (MNRL) and the Digital Intelligence Platform (DIP). These technologies help identify recycled numbers and prevent fraud through timely updates.
New Daily Limits on Balance Enquiries and Account Checks (From August 1, 2025)
Balance Enquiry Restrictions Per App
Users can now only check their balance up to 50 times per day per UPI app. This includes popular apps like Google Pay, PhonePe, Paytm, and BHIM.
Account List View Limits
You can view your linked bank account details no more than 25 times per day per app. This reduces data overuse and encourages responsible app usage.
Real-Time Balance Updates Post Transactions
To reduce the need for repeated checks, banks must now update balances immediately after every successful transaction, making UPI more reliable and user-friendly.
UPI Transaction Status Checks and Autopay Adjustments (From August 1, 2025)
Transaction Status Check Throttling
If a transaction is pending, you can only check its status three times every two hours, with a 90-second gap between each attempt. This prevents server overloads and system abuse.
Autopay Mandate Scheduling Outside Peak Hours
Autopay functions, including EMIs and subscriptions, will be executed only outside peak transaction windows, specifically:
- Before 10 AM
- Between 1 PM – 5 PM
- After 9:30 PM
During peak hours (10 AM to 1 PM and 5 PM to 9:30 PM), such transactions will be paused.
Verified Recipient Name Display (Effective June 30, 2025)
End of Contact-Based Name Display
From June 30, UPI apps will display only the official, bank-registered name of the recipient, not any nickname stored in your contacts. Whether you’re paying via QR code, mobile number, or UPI ID, this rule ensures clarity.
Reduction in Fraud Through Real Identity Confirmation
This change drastically reduces fraud cases where scammers impersonate others using familiar names. Now, you’ll see exactly who you’re paying.
Mandatory Security Audits and Compliance Reporting
Annual CERT-In Audit Requirements
Acquiring banks must undergo a yearly audit by CERT-In empanelled auditors, with reports due before August 31, 2025. These audits ensure infrastructure readiness and adherence to guidelines.
PSPs’ Role in NPCI Compliance and Queuing Systems
Payment Service Providers (PSPs) must implement rate-limiting, queuing, and automated monitoring systems. They also need to submit compliance updates to NPCI regularly.
Limiting “Collect Payments” Feature to Curb Scams
Restriction to Large Verified Merchants
The “collect payments” (pull payment) feature will now be restricted to large, verified merchants only, reducing chances of fraud by individuals misusing this functionality.
New ₹2,000 Limit on Person-to-Person Collect Requests
Any person-to-person collect request cannot exceed ₹2,000, adding an extra layer of security for consumers.
What Users Must Do to Stay Compliant and Secure
✅ Maintain Updated Mobile Numbers
Keep your mobile number active and registered with your bank and UPI app. Otherwise, your UPI ID could be suspended.
✅ Be Mindful of App-Specific UPI Limitations
Each UPI app has its own limit for balance checks and account views. Stay within these boundaries to avoid disruptions.
✅ Double-Check Recipient Names Before Payment
With bank-registered names now shown before each payment, verify the name displayed matches your intended recipient.
Pros and Cons of the New UPI Framework
Major Benefits for Consumers and Banks
The new rules for UPI and UPI apps bring several advantages:
- Enhanced fraud prevention by verifying recipients and limiting collect payments.
- Improved system performance through throttling and real-time updates.
- User accountability by capping excessive balance checks and access attempts.
- Greater data integrity via mobile number validation tools like MNRL and DIP.
Minor Inconveniences and Adaptation Needed
Despite the benefits, users and merchants may experience some short-term disruptions:
- The daily cap on balance inquiries might inconvenience heavy users.
- Autopay delays during peak hours could disrupt scheduled subscriptions.
- Merchants will need to revalidate collect payment authorizations.
Still, these rules are a small price to pay for a much safer and more reliable UPI ecosystem.
The Future of UPI: Safer, Smarter, Stronger
As UPI continues to expand across sectors and demographics, these 2025 updates are a strategic move towards UPI 3.0—the next generation of secure, scalable, and global-ready digital payments. The focus is now clearly on:
- Reducing fraud at scale
- Streamlining system operations
- Ensuring mobile number integrity
- Limiting misuse of features like collect and balance views
These changes also align with global digital payment standards and will encourage more institutional and international participation in India’s digital economy.
Frequently Asked Questions (FAQs)
1. What happens if I don’t update my mobile number linked to my UPI ID?
Your UPI ID will be deactivated, and you will lose access to UPI services. Update your mobile number with both your bank and UPI apps immediately to prevent disruptions.
2. Can I still use nicknames in my contacts for UPI payments?
You can store nicknames, but they will no longer appear during UPI payments. From June 30, 2025, only the bank-registered name of the recipient will be shown.
3. What if I exceed the 50 balance enquiry limit per app?
Your app will block further balance enquiries for that day. You can still perform transactions, but won’t be able to view your balance until the next day.
4. Why are collect payments being restricted?
This is to prevent scams and frauds using unsolicited collect requests. Only large, verified merchants will have unrestricted access, while person-to-person requests are limited to ₹2,000.
5. Will autopay mandates fail during peak hours?
Yes. Mandates for EMIs or SIPs will be processed only during non-peak hours (before 10 AM, 1 PM–5 PM, after 9:30 PM). Ensure funds are available during these times.
6. How can I check if my bank or PSP is compliant with the new rules?
Banks and PSPs are required to submit annual CERT-In audit reports and ongoing compliance reports to NPCI. You can visit NPCI’s official site for updates or ask your bank for confirmation.
Conclusion – Embracing the Change in UPI Ecosystem
The new rules for UPI and UPI apps in 2025 reflect a necessary evolution in India’s rapidly growing digital payment landscape. With user safety at its core, these changes balance security, efficiency, and accountability—ensuring smoother, smarter transactions for everyone.
If you’re a regular UPI user, staying updated and adapting to these rules will protect your money and improve your digital payment experience. Take the time today to:
- Verify your mobile number
- Understand your app-specific limits
- Be vigilant with every transaction
UPI isn’t just a payment method anymore—it’s a digital backbone of India’s economy, and these upgrades are setting it up for global leadership in the coming decade.
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