Big UPI Updates in August 2025: You Need to Know

Unified Payments Interface (UPI), the revolutionary digital payment system developed by the National Payments Corporation of India (NPCI), is set to undergo significant changes starting August 2025. These updates aim to make the platform more secure, inclusive, and advanced, enhancing the digital payment experience for millions of users and businesses in India.

Starting 1 August 2025 “The National Payment corporation of India(NPCI) is rolling out four big change in UPI usage. These changes aims to ease preassure on the system and prevent frequet outages like the one we saw in April and May.

Balance check limit : your can now check your account balance upto 50 times per day per UPI app . So if you use two apps like phonepe and G pay , that’s 50 check each. It’s more than enough for regular users but it helps NPCI reduce unnecessary load on their systems.
Link Bank account check : Want to see which bank account linked to your mobile number? You’ll be able to do that only 25 times per day. That is again to limit excessive requests made to the servers in short time.
Autopay payment time restriction : This one is important. Recuring payments like Netflix, SPIs, Insurance premiums etc. will now only be processed during non-peaks hours. These time window are before 10:00 AM between 1:00 PM and 5:00 PM and after 09:30 PM. So if your auto debit is scheduled at noon, you might see it go through a little later.
UPI Tranctions Status Check : If your payment get stuck , you will only be able to check the transation status 3 times. That two with a gap of 90 second betweent each attemt.
Credit Line Integration on UPI : This means banks will now be allowed to offer pre-approved credit limits to customers directly through their UPI apps. Users can make purchases or transfer funds using the credit limit rather than their own balance similar to using a credit card but via UPI. The move is expected to increase credit access, especially for small businesses and individuals who need immediate, short-term funds.
Mandatory UPI I’D Verification for Merchants : To reduce fraud in merchant payments, all merchant UPI I’Ds will now be required to go through a strict verification and KYC process. Verified merchants will carry a “Green Tick” similar to verified accounts on social media, helping customers ensure they are paying a trusted seller.
Higher Transaction Limits for Select Services : The UPI transaction limit for healthcare, education, and government services is being increased from ₹1 lakh to ₹5 lakh per transaction. This will allow users to pay large bills, fees and other important expenses through UPI without making multiple transactions.
Global UPI Expansion : UPI is going global. Starting in August, cross-border UPI transactions will be enabled in more countries, including the UAE, Singapore, and select European nations. This will allow NRIs and international travellers to make seamless payments to Indian merchants using their existing UPI-linked accounts.

Changes Starting August 31st, 2025 For Big UPI Updates

Backed by Multiple Assets : You can now get a UPI Credit Line (pre-Approved credit via UPI) against a variety of financial assets, not just traditional bank loans:

Table of Contents

Fixed Deposits (FD): Use your existing FD as collateral for a UPI credit line.
Gold: Pledge gold assets to get a credit facility.
Property : credit line can be approved against owned property.
Shares(stock) : Use your stock portfolio as backing for credit.
Existing loans : Credit lines can also be linked to personal or business loans.

Expanded Use Cases for UPI Credit Line : UPI Credit Line was earlier limited in usage, but now it can be used almost like a full-fledged credit card or bank account.

New Allowed Uses:

Cash Withdrawal : Withdraw funds from your UPI-linked credit line via ATMs or banking partners.
P2P Transfers : Send money to friends/family using the credit line (Person-to-Person).
P2PM Payments : Make payments to merchants, including small shopkeepers, hawkers, or vendors (Person-to-Person-Merchant).

Why These Changes?

Faster system : Fewer balance/status checks means UPI works more smoothly.
More secure : Less fraud due to fraud score and strict verication.
Fewer outages : Less system overload = fewer delays.
More useful : Use your credit through UPI in many new ways.

Deadline for All Banks and Apps :

All UPI-linked financial institutions must comply with the new norms by August 31, 2025.

This includes:

Banks offering UPI services.
Payment apps like Phone pe, Google Pay, Paytm, BHIM.
NBFCs and lenders offering credit via UPI.

NOTE : These changes are part of India’s broader push to:

Democratize credit access
Boost digital lending transparency
Make UPI more versatile and credit-inclusive

What You Should Do

Don’t check balance or status too often.
Be ready for new steps while setting up auto payments.
Learn how to use credit lines with UPI (if your bank offers it).
Stay alert for fraud, and report suspicious activity quickly.

Conclusion :

The upcoming changes to UPI in August 2025 signal a bold step forward in India’s digital payment journey. By introducing features like credit access, enhanced security, and global connectivity, UPI is not only evolving with technology but also addressing the real needs of its users. These updates will make transactions faster, safer, and more convenient for everyone from individuals in remote villages to global travelers and large enterprises.

For more information follow us : click here