UPI Rules Changing from August 1: New Transaction Limits, Autopay Timings & Account Link Rules Explained

UPI Rules Changing from August 1: New Transaction Limits, Autopay Timings & Account Link Rules Explained

UPI Rules Changing: If you use apps like Google Pay, PhonePe, Paytm, or BHIM, there’s an important update you need to know.

Starting August 1, 2025, the rules around UPI (Unified Payments Interface) will change. These updates are being introduced to improve your safety, reduce fraud, and make digital payments more efficient.

Here’s a simple breakdown of everything that’s changing.

1. New Transaction Limits Based on Use

Until now, most UPI payments had a single daily limit. But from August 1, the limit will depend on the type of transaction.

Here’s how the new limits look:

• Merchant Payments (shopping, services, bills):
  ₹1 lakh per day (₹5 lakh for hospitals or education)

• UPI Credit Line (new feature):
  ₹1 lakh per transaction (based on your bank’s credit offer)

• Money Transfers to Friends or Family (P2P):
  ₹1 lakh per day (no change)

Why this matters:
This makes UPI safer by allowing higher limits only for trusted services like healthcare or education, and avoids misuse in other categories.

2. Limit on UPI IDs Per Account

Starting August, you can have only 4 UPI IDs per bank account across all apps.

If you’ve created multiple IDs on different apps (like PhonePe, Paytm, etc.), old or unused ones might get deactivated automatically.

Why this matters:
This helps reduce confusion and prevent fraud through unused UPI IDs.

3. UPI Autopay Timing Will Be Restricted

If you use UPI for subscriptions, OTT apps, EMIs, or SIPs, there’s a new rule:

• Autopay will now only work between 6:00 AM and 9:00 PM

No automatic payment will go through at night or midnight anymore.

Why this matters:
It gives you better control and reduces the risk of missing or suspicious transactions happening late at night.

4. UPI Credit Line Will Be Available

Banks will soon allow you to use a pre-approved credit line through UPI.

This means you can borrow money like a short-term loan directly in your UPI app. You’ll see this option if your bank offers it.

Why this matters:
This gives more financial flexibility, especially for users who need instant money during emergencies or shortfalls.

5. Inactive UPI IDs Will Be Deactivated

If you don’t use a UPI ID for 12 months, it will be automatically disabled.

Banks and apps will inform you in advance, and you can always reactivate it if needed.

Why this matters:
This reduces the risk of fraud through unused or forgotten UPI IDs.

6. Stronger Verification for New UPI Users

If you’re setting up UPI for the first time after August 1, the process will be a bit stricter.

• New users will need to verify identity using OTP + biometrics or device confirmation

• Some bank accounts may take longer to link due to tighter checks

Why this matters:
This step is added to reduce scams involving fake UPI setups.

Conclusion

These new UPI rules are meant to make digital payments safer and more efficient for everyone. While most changes are automatic, you should:

• Check how many UPI IDs are linked to your bank account

• Keep track of autopay timings

• Watch for any messages from your bank about inactive IDs

With UPI becoming a part of everyday life, these small changes will go a long way in keeping your money and data safe.