UPI gets smarter: Key rule changes from August 1 to impact daily payments

Starting August 1, digital payments via UPI will undergo significant backend upgrades aimed at improving user experience and reducing system strain. The National Payments Corporation of India (NPCI) is introducing several new protocols that users of apps like PhonePe, Google Pay, and Paytm will start to notice, especially if they rely on UPI for daily transactions.

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A major update is the rescheduling of UPI Autopay requests, such as OTT subscriptions, SIPs, or rent payments, which will now be initiated between 12 AM and 7 AM. The goal is to avoid server overload during busy hours and improve processing speed.

Users will also see a cap on balance inquiries, especially those that use biometric authentication. While NPCI hasn't revealed the exact number, this measure is intended to curb overuse and prevent server slowdowns caused by bots or frequent pings.

In a welcome change, failed or delayed UPI transactions will now display their status more quickly. Instead of being stuck with “Processing” for minutes, users will receive real-time updates, reducing confusion and uncertainty for both senders and recipients.

Finally, new bank account linking through UPI apps will now require stricter verification steps, adding an extra security layer to prevent fraud and accidental linkage.

These updates won't require users to take any action but are expected to make UPI more efficient, secure, and responsive, especially during peak hours.