NPCI Announces New Guidelines To Enhance Efficiency of UPI: Here's Everythihg You Need to Know Before August 2

The National Payments Corporation of India (NPCI) has introduced new guidelines aimed at enhancing the efficiency of the Unified Payments Interface (UPI). These regulations require banks and payment service providers (PSPs) to manage the use of the ten most frequently used UPI Application Programming Interfaces (APIs) by July 31, 2025. From August 1, 2025, UPI applications will limit API usage, including balance inquiries and transaction status checks, due to network strain caused by high usage volumes.

According to NPCI's circular, starting August 1, balance inquiry requests will be capped at 50 per app per day for each customer. Additionally, UPI apps must queue and rate-limit non-customer payment requests during peak traffic hours. These hours are defined as 10 AM to 1 PM and 5 PM to 9:30 PM. This measure aims to alleviate network pressure during these busy periods.

New Guidelines for Autopay Mandates

Autopay mandates are also subject to new rules. They should be processed outside peak hours and at moderated transaction-per-second (TPS) rates. Each autopay mandate is allowed one attempt with up to three retrials. This approach is designed to ensure smoother processing without overloading the system.

The list account request feature, which shows all accounts linked to a user's mobile number, is restricted as well. It can only be initiated 25 times per app within a day. Importantly, this request can only be made after the user selects their issuer bank in the UPI app.

Compliance Deadline for PSPs

PSPs are required to submit a formal undertaking by August 31, 2025, confirming adherence to these new guidelines. Non-compliance could lead to severe consequences such as API restrictions or monetary penalties. In extreme cases, there might even be suspension of new customer onboarding.

Banks have been instructed to send an account balance notification after every transaction. This measure aims to reduce manual balance checks by users. By doing so, it helps in managing network load more effectively and ensures users are informed about their account status promptly.

The NPCI's initiative reflects a proactive approach towards maintaining UPI's reliability amidst increasing demand. By regulating API usage and setting specific operational windows for certain transactions, it seeks to prevent outages and enhance user experience across platforms.

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