Starting August 1, 2025, new rules around UPI (Unified Payments Interface) will come into effect — and if you’re someone who regularly uses apps like Paytm, PhonePe, Google Pay, or BHIM, it’s a good idea to be informed.

As per the National Payments Corporation of India (NPCI), the updated guidelines aim to enhance user security, prevent fraud, and ensure smoother transaction processing as digital payments continue to grow across India.

One of the key updates includes a daily cap on UPI transactions to prevent system overloads and reduce risks of fraud. For most users, this won’t disrupt everyday use, but if you tend to make multiple high-value transfers in a day, you might need to plan ahead.

Another notable change is related to inactive accounts. UPI handles that haven’t been used in over 12 months may be temporarily deactivated to avoid misuse. If you use UPI sparingly, make sure your bank-linked app remains active by performing a transaction once in a while.

Additionally, wallet-based UPI transactions (like Paytm Wallet or PhonePe Wallet) will now require extra authentication for certain transactions, especially above ₹2,000. This added layer of security is designed to protect users from accidental or unauthorized payments.

Lastly, merchants and small business users can expect clearer reporting on settlement timings and charges, which will improve transparency and allow for easier accounting.

While these changes may seem small, they’re part of a broader push to strengthen India’s digital payment ecosystem. So, whether you use UPI for bill payments, groceries, or sending money to friends — staying updated will help avoid any surprises.