The limit of free UPI transactions will be fixed. Additional charges may be levied on frequent small transactions or balance inquiries.

UPI (Unified Payments Interface) has been a revolutionary step in the world of digital payments, which inspired people to move towards cashless transactions. Today, millions of Indians send and receive money every day through UPI based apps like Paytm, Google Pay, PhonePe, or just open the app to check balance. But if you are also used to checking balance several times a day or making small transactions, then now this habit may have to be changed. NPCI (National Payments Corporation of India) has announced to implement some new rules from August 1, 2025, which will directly affect UPI users.

New rules will be implemented from August 1

According to the new rules that will come into effect from August 1, 2025, the limit of free UPI transactions will be fixed. Now a limit will be set on how many times you can check balance or transact through UPI in a day. Additional charges may be levied on frequent small transactions or balance inquiries.

Users cannot check balance during peak hours

NPCI has declared 10 am to 1 pm and 5 pm to 9:30 pm as ‘peak hours’. API requests will be limited during these times. If you check your bank balance or transaction status multiple times during this time, the bank may send you a message saying ‘Try again later’. NPCI says that important transactions should be given priority during this time. To ensure that the user does not check the balance multiple times on the app, the bank will also have to ensure that the user gets balance information after every transaction.

Users using UPI autopay for services like Netflix, Prime or SIP, insurance can get this facility only during non-peak hours. That is, this facility will not be given to users from 10 am to 1 pm and from 5:30 pm to 9 pm. According to NPCI, each AutoPay mandate will be attempted only once and can be attempted a maximum of 3 times, but all these attempts will be valid within TPS limits and during non-peak times too.

Reasons for decision making

In the last few months, after receiving complaints of delays of more than 90 seconds and crashes of the UPI system, some people demanded that a charge be imposed on UPI so that its service could be improved. Although NPCI refused to impose the charge, it has started imposing limits during peak times.

Its impact on common users

If you open the UPI app several times a day to check your balance, then now you will have to be careful about it. After the new system, you may have to pay a fee for checking your balance repeatedly or making small transactions. Therefore, it is important that users change their habits and use UPI more thoughtfully.

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This feature will be very useful in making instant payments. However, the transaction limit can be up to Rs.200 only. It has been claimed in the report that both the companies are in the advanced stage of integrating UPI Lite. The Economic Times has reported about this quoting the source.

Paytm can bring service first

It has been claimed in the report that first Paytm will release UPI Lite service for its app within a month. After this PhonePe will also introduce this service. If this happens, Paytm will become the first third-party app to issue UPI Lite service.

You will get benefit in small transactions

Apart from this, it has also been told in the report that Fintech company Slice is also working to release UPI Lite service on its platform. With this, young customers can complete small amount transactions.

Let us tell you that the UPI Lite service was launched by the Reserve Bank of India last year. This allows users to transfer even low value amounts without internet or UPI PIN authentication. Payment up to Rs 200 has been authorized through the wallet.

NPCI had said in March last year that about 50 percent of the total UPI transactions are of Rs 200 or less. Its integration into third-party platforms will make such transactions much easier. Nothing has been said about this from both the companies.

The post UPI Lite service: Paytm and PhonePe can bring this service soon, payment will be done without UPI pin, this will be the limit first appeared on Rightsofemployees.com.