Major UPI Rule Changes from August 1: Here's What Users Should Know

National News: The Unified Payments Interface (UPI), one of India's most widely used digital payment systems, is set to undergo some significant changes starting August 1. These changes will impact how users manage transactions and interact with banking services through UPI. Here's a detailed breakdown of what’s new.

1. Daily Limit on Balance Inquiries

Until now, there was no restriction on how many times users could check their bank balance via UPI apps like PhonePe, Paytm, or Google Pay. But from August 1, users will be allowed to check their account balance only up to 50 times per day. After that, they’ll be blocked from further balance inquiries until the next day.

This limit will apply even if multiple bank accounts are linked to the same mobile number, which could affect users who actively manage more than one account.

2. Auto-Debit Restrictions During Peak Hours

Auto-payment services for monthly subscriptions (like OTT platforms) and investment plans (like SIPs) will now be regulated. Auto-debit transactions will be disallowed during peak banking hours. These payments can only be processed in the following time slots:

• Before 10:00 AM
• Between 1:00 PM to 5:00 PM
• After 9:30 PM

This move aims to reduce network congestion during high-traffic periods and ensure smoother digital transaction processing.

3. Making UPI Payments via Credit Card – Step-by-Step

With the increasing integration of credit cards into UPI platforms, users can now pay using their credit card in the following way:

• Step 1: Open your UPI app and scan the QR code.
• Step 2: Choose the option to pay via phone number or contact.
• Step 3: Enter the recipient’s UPI ID or choose another method if needed.
• Step 4: You may also use the “Self Transfer” option if sending money to yourself.
• Step 5: Confirm the payment details and enter the desired amount.
• Step 6: Select your linked credit card as the payment method.
• Step 7: Complete the transaction by entering your UPI PIN.

Why These Changes Matter

The National Payments Corporation of India (NPCI) is introducing these reforms to strengthen cybersecurity, reduce system overload, and streamline digital banking behavior. UPI users are encouraged to stay informed and adapt to these changes for hassle-free transactions.