UPI changes on August 5 and the new UPI Rules 2025 will bring about a major change in the way millions of Indians make digital payments. Starting August 5, 2025, the National Payments Corporation of India (NPCI) will make several rule changes aimed at improving user security, payment reliability and the overall UPI ecosystem.
If you regularly use apps like Google Pay, PhonePe, Paytm or BHIM, these new rules will affect the way you send, receive and manage money. Here’s what’s changing and how to avoid it.
Major changes coming to UPI
Inactive UPI IDs will be deactivated
Any UPI Identifier (also called VPA) that is inactive for more than 12 months will be automatically deactivated. The move is being taken to avoid potential frauds from unused virtual payment addresses.
Auto-debit mandates required to be reconfirmed
If you have set up auto-pay for OTT platforms or recurring bills, you will now have to reconfirm these mandates every six months to keep them active.
New transaction limits based on usage
NPCI is expected to introduce different limits – higher limits for merchant payments, and revised limits for person-to-person transfers. This may benefit small businesses and digital service users.
Improved complaint resolution within UPI apps
Users will now be able to track their complaints in real-time through UPI apps instead of waiting for email or bank replies.
Faster multi-bank linking
The new update will make it easier and faster to link multiple bank accounts under a single UPI ID and will also reduce authentication delays.
What this means for users
With over 12 billion transactions every month, UPI has become India’s top digital payment system. These new guidelines are aimed at strengthening user trust, enhancing security, and reducing fraud in the system.
Banks and app providers are already sending alerts and in-app messages to ensure users are informed and prepared for the switch. Be sure to review your app settings and confirm any pending mandates before August 5.
Summary of changes coming to UPI from 5th August 2025
Update details
- Inactive UPI IDs will be disabled if there is no activity for 12 months
- Auto-debit mandatory: Re-confirmation required every 6 months
- Transaction limit changes: New daily limits based on transaction type
- Real-time complaint tracking status will be visible inside UPI apps
- Multi-bank account linking: Faster and easier verification process
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