UPI has become the go-to mode of transaction for most of us in recent times. Starting August 1, a set of new rules aims to make this cashless experience even safer and more efficient. The updates include changes to balance check limits, auto-debit procedures, bank account details, and more enhancing a better security and user convenience.
According to a compliance notice issued by the National Payments Corporation of India (NPCI) on May 21, Payment Service Providers (PSPs), UPI apps (like Paytm, Google Pay, PhonePe, BHIM), and banks are required to implement the new changes latest by July 31.
Balance Enquiry: With the new rule in place, users can check their balances for a limited number of times in a day which was unlimited before. As per a news report, the balance enquiry is limited to 50 per app per customer in a time period of 24 hours is applicable. This change helps prevent bots from overloading the system with too many balance checks, protecting users and keeping the service running smoothly.
Limited auto-payment option: Under these new regulations, autopayments can only be processed from 12 AM to 7 AM. This timing is strategically chosen to coincide with periods of low app usage, helping to distribute transaction loads and online traffic more evenly and reduce the risk of system overload during peak hours.
There will be a total of four execution of attempts for the autopayments. Initial one attempt and a maximum of three retries will only be allowed to make the process more secure and better.
No more Pending Transaction status: The most irritating and also concerning status for a transaction is Pending. It leaves users unsure whether their payment went through, whether they should retry, or fear that money might be deducted twice. With the new rule, the Pending status will be resolved within seconds, providing an immediate update of either Success or Failure. This will help prevent users from panicking and stop the need to take multiple screenshots as proof for the recipient.
Limited bank account checks: The new UPI rule will only allow users to check which bank is linked to which UPI only 25 times a day per app. Most people using the app for paying bills, scanning QR codes, or sending money will not know much difference unless they constantly keep checking their balance and have a series of repeated payment failures.
The UPI apps failing to comply with the new rules will be faced with a few consequences. This includes: API access restrictions, Penalties, Suspension of onboarding new customers and other corrective actions considered appropriate by NPCI.