NPCI introduces new UPI guidelines , know details

The National Payments Corporation of India (NPCI) has announced several important changes to the Unified Payments Interface (UPI) ecosystem aimed at enhancing transaction performance and system stability. The new set of guidelines, effective from August 1, 2025, places limits on balance enquiry requests and regulates the use of APIs such as Autopay Mandate Execution and Validate Address to reduce server overload and improve user experience.

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Tarun Nazare, Co-Founder and Managing Director of Neokred, welcomed the move, stating, “These guidelines are prudent and forward-thinking, prioritizing system efficiency and user security. Capping balance requests and optimizing API usage—especially with clear restrictions during peak hours—will reduce server overloads and potential service outages. The emphasis on customer consent and timely compliance ensures transparency and accountability among payment service providers.”

Key changes users can expect

Daily Cap on Balance Enquiries:

Each UPI user can now make a maximum of 50 balance enquiry requests per app within a rolling 24-hour period. Importantly, these requests must be initiated directly by the customer, not automatically by the app or backend systems. To manage traffic during peak hours, UPI apps will have the ability to limit or temporarily halt balance enquiries. Additionally, banks must include the current available balance in the confirmation message after every successful UPI transaction.

Limits on Bank Account Access via UPI:

The List Account API, which allows users to view bank accounts linked to their mobile number on a specific bank’s UPI app, will be limited to 25 requests per customer per app per day. These requests should only be triggered after the user selects their bank within the app. Any retries to load accounts must happen with explicit customer consent to avoid unnecessary strain on the system.

Autopay Mandate Execution Restrictions:

To reduce network congestion, NPCI has capped the number of mandate execution attempts to a maximum of four per mandate—one initial attempt plus three retries. Further, all Autopay transactions must be scheduled outside peak transaction hours. Peak hours have been defined as 10:00 a.m. to 1:00 p.m. and 5:00 p.m. to 9:30 p.m., periods when UPI transactions typically see the highest volume.

Compliance and Penalties

NPCI has instructed all Payment Service Providers (PSPs) to implement these changes by July 31, 2025. Non-compliance may lead to penalties, restrictions on UPI API access, suspension of new customer onboarding, or other enforcement measures deemed necessary.

In its official press release dated May 21, 2025, NPCI stated, “Members are requested to take note of this compliance requirement and communicate it to relevant stakeholders and their respective partners for implementation by July 31, 2025. In the event of non-compliance to the above guidelines, NPCI may take necessary action including UPI API restrictions, penalties, suspension of new customer onboarding, or any other measures deemed appropriate.”

These new measures are designed to strengthen the security and reliability of the UPI ecosystem, which has become a backbone of digital payments in India. By limiting excessive API calls and ensuring customer consent, NPCI aims to create a smoother, safer payment experience for millions of users nationwide.