Starting August 1, 2025, the National Payments Corporation of India (NPCI) has rolled out a set of new rules for UPI Transaction Charges to enhance transaction efficiency, reduce system load, and improve user security. Whether you’re a frequent user of Google Pay, PhonePe, Paytm, or BHIM, these updates will impact your daily UPI experience.
Here’s everything you need to know about the latest UPI changes.
Why These Changes?
With over 12 billion monthly transactions, UPI is India’s most preferred payment system. However, growing traffic has put pressure on banking APIs and raised concerns over payment delays, system overload, and fraud. The new rules aim to:
- Reduce stress on the backend systems
- Enhance transaction transparency
- Improve payment security
- Streamline auto-debits and balance checks
UPI Transaction Charges Rule Changes from August 1, 2025
Limit on Balance Checks
You can now check your bank balance only 50 times per day per UPI app (e.g., GPay, PhonePe, Paytm).
Why? This reduces overload on banking APIs.
What if I exceed the limit? You’ll be blocked from checking your balance on that app for 24 hours.
Auto-Balance Display After Each Transaction
Now, after every successful UPI transaction, your updated account balance will automatically be shown.
This reduces the need to manually check your balance.
Cap on Bank Account Linking
You can link up to 25 bank accounts per day via a UPI app using mobile number/account fetch options.
This prevents misuse through excessive account linking attempts.
Limit on Checking Transaction Status
For pending UPI transactions, you can now check the status only 3 times per transaction — with a minimum 90-second gap between each attempt.
This ensures system stability and deters API abuse.
Auto-Debit Processing Time
Auto-debits for EMIs, SIPs, subscriptions, etc., will be processed only during non-peak hours:
- Before 10:00 AM
- Between 1 PM to 5 PM
- After 9:30 PM
This ensures faster processing and better system performance.
Payee Name Display for Transparency
Before confirming a UPI transfer, apps would show the recipient’s registered bank name along with the payee name.
This reduces the risk of fraud or wrong transfers.
UPI Transaction Limits in 2025
The NPCI has set general UPI transfer limits, but individual banks can define their own within these guidelines.
| Transaction Type | Limit |
| Standard UPI transfers | ₹1,00,000/day |
| Capital markets, insurance, remittances | ₹2,00,000/day |
| Tax payments, education, IPOs, hospitals | ₹5,00,000/day |
Bank-level limits vary. For instance:
- SBI, HDFC, Axis, ICICI: ₹1,00,000/day
- PNB: ₹50,000/day
- Union Bank: ₹2,00,000/day
- ICICI on Google Pay: ₹10,000–₹25,000
Some banks also set weekly or monthly limits.
For example:
- IDFC Bank – Weekly: ₹1,00,000 | Monthly: ₹30,00,000
New Interchange Fee Rules for Wallet-Based UPI Payments
If you use wallets like PhonePe Wallet, Paytm Wallet, Amazon Pay, etc., to make UPI payments above ₹2,000, interchange fees now apply — but only to merchants.
What is an Interchange Fee?
It’s a small fee (0.5%–1.1%) charged to merchants, not customers, when payments are made via Prepaid Payment Instruments (PPIs).
| Merchant Category | Interchange Fee |
| Fuel | 0.5% |
| Telecom, Utilities, Education | 0.7% |
| Supermarkets | 0.9% |
| Insurance, Mutual Funds, Govt, Railways | 1.0% |
| Others (Above ₹2,000 via Wallets) | Up to 1.1% |
Customers are not affected—only merchants pay this fee.
Who Pays the Wallet Loading Fee?
When users recharge wallets with more than ₹2,000, the wallet issuer (e.g., PhonePe or Gpay or such others) pays 0.15% as a wallet loading service charge to the user’s bank.
You don’t pay anything extra.
Are UPI Transactions Still Free?
YES.
All personal UPI payments (Peer-to-Peer and Peer-to-Merchant via bank accounts) remain free for users, even above ₹2,000.
Only wallet-based PPI merchant transactions above ₹2,000 attract interchange fees—and even then, merchants pay, not customers.
Summary of What Changes for You
| Feature | Old Rule | New Rule (Aug 1, 2025) |
| Balance Check | Unlimited | 50/day per app |
| Auto Balance Display | Manual | Auto after every transaction |
| Account Linking | Unlimited | Max 25 accounts/day per app |
| Pending Txn Status Check | Unlimited | Max 3 times with 90-sec gap |
| Auto-Debits | Anytime | Only before 10 AM/after 9:30 PM |
| Wallet-based UPI Fee | Free | Interchange fee on PPI > ₹2,000 |
Final Thoughts
The new UPI rules are user-centric, aiming to enhance reliability, transparency, and digital security. As a user, you still enjoy zero-fee UPI transfers for personal use, while the backend gets smarter and more streamlined.
So, continue enjoying seamless payments—just be mindful of the new usage caps and wallet-based fee structures (if you’re a merchant).
