New UPI Rules Effective August 1, 2025: Key Changes Announced

The National Payments Corporation of India (NPCI) has rolled out new UPI rules that came into effect from August 1, 2025. These regulations are aimed at strengthening security, transparency, and customer protection as UPI transactions continue to surge across India. One of the major changes includes stricter daily transaction limits for certain categories such as gaming, credit lines, and financial services. Additionally, banks and payment service providers are now required to implement enhanced fraud monitoring systems to detect suspicious activities in real-time. The rules also introduce new guidelines for UPI-linked credit lines, restricting fund diversion and mandating better disclosures by financial institutions. This step is expected to improve the credibility of digital lending while protecting users from hidden charges. Industry experts believe that while the new rules may initially create some inconvenience for users and fintech companies, they are crucial for ensuring long-term trust in the UPI ecosystem.