Starting August 2025, India’s most popular digital payment system — Unified Payments Interface (UPI) — is getting a major upgrade. The National Payments Corporation of India (NPCI) has introduced new UPI transaction rules aimed at improving efficiency, reducing system load, and strengthening security.
From daily limits to new wallet fees, here’s everything users need to know about the latest UPI updates.
Key Focus: Efficiency and Security
The new UPI rules are designed to make digital payments faster, smoother, and more secure. Users will notice several key changes such as:
- Limits on balance inquiries to reduce unnecessary server requests.
- Restrictions on linking multiple bank accounts under one UPI ID.
- Stricter time windows for approving or modifying auto-debit mandates.
Together, these steps aim to streamline the platform while reducing misuse and system congestion.
Transaction Limits for Daily Use
The standard daily transaction limit remains ₹1 lakh per user, which covers most personal and household payments.
However, for essential categories such as:
- Education fees,
- Healthcare expenses, and
- High-value purchases,
banks may approve higher limits on a case-by-case basis. This flexible approach ensures convenience for genuine needs while maintaining transaction control for everyday use.
Introduction of Interchange Fees on Wallet Payments
One of the most significant updates in 2025 is the introduction of interchange fees on wallet-based UPI transactions.
Here’s how it works:
- Peer-to-peer (P2P) UPI transfers (like sending money to friends or family) remain completely free.
- But loading money into digital wallets such as PhonePe, Paytm, or Google Pay may now attract a small interchange fee.
This fee helps balance operational costs for payment service providers and ensures the sustainability of the UPI ecosystem as transaction volumes continue to grow.
Security Enhancements in 2025
Security remains a top priority in the updated rules. The new measures include:
- Clear payee name display: Before confirming a transaction, users will now see the recipient’s name prominently to avoid sending money to the wrong account.
- Restricted account access requests: Apps will face limits on how frequently they can request permission to access a user’s account — reducing phishing and scam risks.
These improvements are designed to give users greater confidence and control when making digital payments.
How the Changes Affect You
For the average UPI user, nothing drastic changes — everyday transactions will remain free, fast, and secure.
However, businesses, power users, and digital wallet holders will notice the impact more. The updates encourage responsible usage, reduce failed transactions, and make the system more reliable under heavy loads.
With UPI becoming the backbone of India’s digital economy, these rules ensure it stays efficient, fraud-resistant, and future-ready.
FAQs on UPI Transaction Rules 2025
Q1. Are UPI transactions still free in 2025?
Yes. Peer-to-peer (P2P) UPI transactions remain free. Only wallet-based payments may attract a small interchange fee.
Q2. What is the daily UPI transaction limit?
The standard limit is ₹1 lakh per user per day, though banks can offer higher limits for specific categories like education or healthcare.
Q3. Will auto-debit mandates change?
Yes. Auto-debit requests now have stricter time windows, giving users better control and reducing unauthorized deductions.
Q4. How do the new rules improve security?
UPI apps will now display the payee’s name before confirmation and limit repeated account access requests — helping prevent fraud and misuse.