UPI system changes: New NPCI rules kick in from August 1 - All you need to know
Starting August 1, 2025, UPI will see changes as the National Payments Corporation of India (NPCI) has rolled out new performance-centric guidelines for the UPI ecosystem.
The changes are aimed at improving system efficiency, preventing outages, and ensuring better user consent mechanisms.
Payment Service Providers (PSPs), UPI apps, and banks must implement the changes by July 31, as per NPCI's compliance notice dated May 21.
Cap on balance enquiries to prevent system overload
A major change includes a cap on balance enquiry requests, now limited to 50 per app per customer in a rolling 24-hour period, as per ET.
These requests must be user-initiated only, with no automatic prompts by apps or systems. UPI apps must also introduce the ability to reduce or halt such requests during peak load hours to minimise system strain.
The guidelines also require issuer banks to include the available account balance in every successful UPI transaction message, streamlining user experience and reducing the need for separate balance checks.
Limit on bank account access via 'list account' API
NPCI has also put in place access limits on the 'list account' API, which lets users view bank accounts linked to their mobile number. This API will now be restricted to 25 requests per customer per app per day, and only after the user selects their bank in the app.
by Taboola
by Taboola
Sponsored Links
Sponsored Links
Promoted Links
Promoted Links
You May Like
Libas Purple Days Sale
Libas
Undo
Any retries must be made with explicit customer consent, ensuring transparency and avoiding unnecessary API calls.
Restrictions on UPI autopay transactions during peak hours
To further address system congestion, NPCI has restricted UPI Autopay executions to non-peak hours only. Peak hours are defined as 10:00 to 13:00 and 17:00 to 21:30.
Each autopay mandate will be allowed one initial attempt and a maximum of three retries, clearly capped at four total executions per mandate sequence.
Industry reaction welcomes move towards efficiency
Welcoming the new rules, Tarun Nazare, co-founder and managing director of Neokred was quoted as saying by ET that 'These measures are prudent and forward-thinking, as they prioritise system efficiency and user security. By capping balance requests and optimising API usage—especially with clear restrictions during peak hours—the guidelines will effectively reduce server overloads and potential service outages.
'
He also highlighted the value of 'emphasis on customer consent and timely compliance' in enhancing system accountability.
Deadline set for compliance; penalties for violations
The NPCI has clearly warned that failure to comply with these directives by July 31, 2025, may result in UPI API restrictions, penalties, suspension of new customer onboarding, or any other appropriate action.
NPCI has advised all member banks and UPI ecosystem participants to communicate these changes across their systems and partners ahead of the compliance deadline.
Stay informed with the latest
business
news, updates on
bank holidays
and
public holidays
.
Discover stories of India's leading eco-innovators at Ecopreneur Honours 2025
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
2 hours ago
- Time of India
Trump's 25% tariff, penalties raise alarm: Indian exporters fear order cancellations; urgent support sought from government
AI-generated image Businesses are expressing worry about potential order cancellations from American clients, given the 25% duty on Indian products, which exceeds rates for rival nations like Bangladesh, Pakistan and Vietnam, alongside an additional penalty causing uncertainty. During discussions with commerce and industry minister Piyush Goyal, various sector representatives, including textiles, steel, engineering and agriculture, reportedly requested swift implementation of an Export Promotion Mission, US market assistance, and interest equalisation for export credit. 'Exporters spoke about the adverse effects of tariffs. They want support,' said an official, quoted by Economic Times. Since August 7, the US will be implementing a uniform 25 per cent duty on all Indian goods, plus a penalty. This substantial duty could affect nearly 50% of India's US exports, which exceed $85 billion. A textile sector spokesperson highlighted that the 25% duty puts India at a disadvantage compared to competitors who face lower tariffs. Industry representatives indicated that a 20% rate could have been shared amongst importers, exporters and consumers, but the current 25% necessitates fiscal support, such as enhanced benefits under the Rebate of States and Central Taxes and Levies scheme. The textile sector warned about possible job losses, as America represents one-third of India's textile exports, with the higher duty potentially reducing business. "The US market is price sensitive with lower design elements. The impact will be visible on core sport items like T-shirts and home textiles from September when the peak season for textiles starts," the textile industry representative said, as quoted by ET. America was India's primary export market in fiscal 2025, with exports worth $87 billion, representing approximately 20% of the total $437 billion. "Had an insightful interaction today in Mumbai with leading industry captains from India's vibrant textiles sector. Discussed bold ideas to enhance global competitiveness, sustainability, innovation & value chain integration. Together, we're weaving India's rise as a global textiles powerhouse," Goyal wrote in a post on X. "Held a productive dialogue with major steel producers in Mumbai. Focused on ideas like advanced tech adoption, reducing logistics costs, increasing iron ore production, and expanding India's role in global value chains by making our MSMEs more competitive. Looking forward to a collaborative road map ahead to forge a resilient & future-ready steel industry," he added. Also read: Forced pivot from Russian crude oil after Trump's 'penalty' could cost India $9–11 billion- What analysts say Industry participants noted unclear penalty guidelines limiting orders and requiring incentives. Additionally, uncertainty about Russian import-related penalties and unspecified landed costs deterred buyers from placing orders. Stay informed with the latest business news, updates on bank holidays and public holidays . Discover stories of India's leading eco-innovators at Ecopreneur Honours 2025
Economic Times
3 hours ago
- Economic Times
Is Bharat outpacing India in mutual fund growth?
In Agra, Shalab Bibhab was born into an illustrious family with a nine-decade legacy in real estate and education. His career began as an equity research analyst in Mumbai. However, he was called back to join his family business in Agra. In 2019, he started his own venture, motivated by the desire to secure his special child's financial future, particularly in light of her medical expenses. Today, he manages ₹1,650 crore in assets under management (AUM) in mutual funds. When he began, Agra was classified as a B-30 city, but it has since transitioned to a T-30, despite being a Tier-2 location. Shalab's story is no longer an anomaly; it's emblematic of a quiet transformation brewing in India's smaller towns and cities. Cities beyond the top 30 (B-30) are rewriting India's mutual fund narrative. Once considered passive spectators in financial markets, these regions are now emerging as active participants, driving a significant shift in the FY25, over 55% of all new SIP registrations came from B-30 locations—up from 48% just two years ago. These cities have added over 2.34 crore new SIP accounts, with a notable rise in direct plan investments, signaling growing financial confidence and share of B-30 assets under management (AUM) in the mutual fund industry has risen from 16% in December 2020 to 18% in March 2025. What's even more striking is the composition of these investments: over 80% of B-30 AUM is allocated to equity funds, compared to just 52% in the top 30 cities (T-30). Digital enablement: The proliferation of low-cost smartphones, Aadhaar-based eKYC, and UPI payments has made it incredibly easy to start an SIP—even in remote areas. Internet penetration has skyrocketed, with broadband connections growing by an astounding 1,452% between 2014 and 2024, according to the Ministry of education: Campaigns like "Mutual Funds Sahi Hai" have resonated deeply in smaller towns, where trust and clarity are paramount. Fund houses and the Association of Mutual Funds in India (AMFI) have stepped up efforts to demystify mutual funds, making them accessible to first-time investors. According to AMFI, the mutual fund industry's overall net AUM has reached an all-time high of ₹74.41 lakh shift: Sebi's decision to allow SIPs with investments as low as ₹250 has lowered the entry barrier, especially for young and first-time investors. The aspirations of Bharat are aligning with those of urban India. Whether it's planning for children's education, buying a home, or building a retirement corpus, SIPs offer a structured, low-risk route to achieve long-term goals. There's a noticeable shift away from traditional investments. Mutual funds, particularly equity funds, are increasingly seen as viable alternatives for wealth Investment Plans (SIPs) have become the entry point for millions of first-time investors, thanks to their disciplined, flexible, and accessible structure. In June 2025 alone, net inflows into equity mutual funds rose 24% month-on-month to ₹23,568 crore, according to AMFI data. Overall mutual fund inflows surged 67% month-on-month to ₹49,301 crore. What's even more exciting is the demographic shift—a majority of new SIP accounts are now being opened outside the top 30 cities. Persistency rates in SIPs from B-30 cities have also improved, suggesting that investors from these regions are not just participating—they are staying invested. This is a critical indicator of financial maturity and long-term wealth-building intent. The mutual fund industry in India is still in its nascent stages compared to developed markets. India's mutual fund AUM-to-GDP ratio is 19.9% as of March 2025, significantly lower than that of many developed economies. This gap underscores the immense growth potential. For B-30 cities, the opportunity is even more pronounced. With rising incomes, improving financial literacy, and increasing digital penetration, the next wave of mutual fund investors will likely come from these regions. However, challenges remain. Despite the progress, financial literacy levels in smaller towns are still lower than in metros. Misinformation and a lack of trust in financial products can deter potential investors. Additionally, while digital infrastructure has improved, tech challenges like inconsistent internet connectivity in remote areas can hinder seamless 2020 to 2025, mutual fund AUM from B-30 cities has grown at a compound annual growth rate (CAGR) of over 24%, with equity-specific AUM growing even faster. The trend is clear: Bharat is no longer just consuming financial knowledge—it is applying it with outlook for the mutual fund industry remains robust. Equity funds are expected to continue dominating inflows, driven by India's long-term growth story. Debt funds and ETFs are also gaining traction, offering diversification options to mutual fund companies, the focus must now shift to deepening engagement in B-30 cities. This includes tailored financial products, localized investor education programs, and leveraging technology to enhance mutual fund future is being shaped in smaller towns, not just skyscraper cities. The cities and towns once seen as peripheral are now setting the pace. For mutual fund companies, this is the moment to nurture, support, and deepen this shift—because the next 100 million investors will likely come not from the metros, but from the heart of Shalab aptly demonstrated, the aspirations of Bharat are no different from those of urban India. What's changing is the access, awareness, and confidence to act on those aspirations. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
Time of India
3 hours ago
- Time of India
Is Bharat outpacing India in mutual fund growth?
In Agra, Shalab Bibhab was born into an illustrious family with a nine-decade legacy in real estate and education. His career began as an equity research analyst in Mumbai. However, he was called back to join his family business in Agra. In 2019, he started his own venture, motivated by the desire to secure his special child's financial future, particularly in light of her medical expenses. Today, he manages ₹1,650 crore in assets under management (AUM) in mutual funds . When he began, Agra was classified as a B-30 city, but it has since transitioned to a T-30, despite being a Tier-2 location. Shalab's story is no longer an anomaly; it's emblematic of a quiet transformation brewing in India's smaller towns and cities. Explore courses from Top Institutes in Please select course: Select a Course Category Project Management Technology Data Science healthcare Operations Management MBA Cybersecurity Digital Marketing Artificial Intelligence Data Analytics Product Management Design Thinking Data Science Healthcare CXO PGDM Public Policy Others Management Finance Leadership others Degree MCA Skills you'll gain: Project Planning & Governance Agile Software Development Practices Project Management Tools & Software Techniques Scrum Framework Duration: 12 Weeks Indian School of Business Certificate Programme in IT Project Management Starts on Jun 20, 2024 Get Details Skills you'll gain: Portfolio Management Project Planning & Risk Analysis Strategic Project/Portfolio Selection Adaptive & Agile Project Management Duration: 6 Months IIT Delhi Certificate Programme in Project Management Starts on May 30, 2024 Get Details Cities beyond the top 30 (B-30) are rewriting India's mutual fund narrative. Once considered passive spectators in financial markets, these regions are now emerging as active participants, driving a significant shift in the industry. Best MF to invest Looking for the best mutual funds to invest? Here are our recommendations. View Details » by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Discover the AI writing partner that understands your audience. Grammarly Install Now In FY25, over 55% of all new SIP registrations came from B-30 locations—up from 48% just two years ago. These cities have added over 2.34 crore new SIP accounts, with a notable rise in direct plan investments, signaling growing financial confidence and awareness. The share of B-30 assets under management (AUM) in the mutual fund industry has risen from 16% in December 2020 to 18% in March 2025. What's even more striking is the composition of these investments: over 80% of B-30 AUM is allocated to equity funds, compared to just 52% in the top 30 cities (T-30). Live Events Factors driving growth in smaller cities Digital enablement: The proliferation of low-cost smartphones, Aadhaar-based eKYC, and UPI payments has made it incredibly easy to start an SIP—even in remote areas. Internet penetration has skyrocketed, with broadband connections growing by an astounding 1,452% between 2014 and 2024, according to the Ministry of Communications. Financial education: Campaigns like "Mutual Funds Sahi Hai" have resonated deeply in smaller towns, where trust and clarity are paramount. Fund houses and the Association of Mutual Funds in India (AMFI) have stepped up efforts to demystify mutual funds, making them accessible to first-time investors. According to AMFI, the mutual fund industry's overall net AUM has reached an all-time high of ₹74.41 lakh crore. Mindset shift: Sebi's decision to allow SIPs with investments as low as ₹250 has lowered the entry barrier, especially for young and first-time investors. The aspirations of Bharat are aligning with those of urban India. Whether it's planning for children's education, buying a home, or building a retirement corpus, SIPs offer a structured, low-risk route to achieve long-term goals. There's a noticeable shift away from traditional investments. Mutual funds, particularly equity funds, are increasingly seen as viable alternatives for wealth creation. Systematic Investment Plans (SIPs) have become the entry point for millions of first-time investors, thanks to their disciplined, flexible, and accessible structure. In June 2025 alone, net inflows into equity mutual funds rose 24% month-on-month to ₹23,568 crore, according to AMFI data. Overall mutual fund inflows surged 67% month-on-month to ₹49,301 crore. What's even more exciting is the demographic shift—a majority of new SIP accounts are now being opened outside the top 30 cities. Persistency rates in SIPs from B-30 cities have also improved, suggesting that investors from these regions are not just participating—they are staying invested. This is a critical indicator of financial maturity and long-term wealth-building intent. Opportunities and challenges The mutual fund industry in India is still in its nascent stages compared to developed markets. India's mutual fund AUM-to-GDP ratio is 19.9% as of March 2025, significantly lower than that of many developed economies. This gap underscores the immense growth potential. For B-30 cities, the opportunity is even more pronounced. With rising incomes, improving financial literacy , and increasing digital penetration, the next wave of mutual fund investors will likely come from these regions. However, challenges remain. Despite the progress, financial literacy levels in smaller towns are still lower than in metros. Misinformation and a lack of trust in financial products can deter potential investors. Additionally, while digital infrastructure has improved, tech challenges like inconsistent internet connectivity in remote areas can hinder seamless participation. The road ahead From 2020 to 2025, mutual fund AUM from B-30 cities has grown at a compound annual growth rate (CAGR) of over 24%, with equity-specific AUM growing even faster. The trend is clear: Bharat is no longer just consuming financial knowledge—it is applying it with intent. The outlook for the mutual fund industry remains robust. Equity funds are expected to continue dominating inflows, driven by India's long-term growth story. Debt funds and ETFs are also gaining traction, offering diversification options to investors. For mutual fund companies, the focus must now shift to deepening engagement in B-30 cities. This includes tailored financial products, localized investor education programs, and leveraging technology to enhance accessibility. India's mutual fund future is being shaped in smaller towns, not just skyscraper cities. The cities and towns once seen as peripheral are now setting the pace. For mutual fund companies, this is the moment to nurture, support, and deepen this shift—because the next 100 million investors will likely come not from the metros, but from the heart of India. As Shalab aptly demonstrated, the aspirations of Bharat are no different from those of urban India. What's changing is the access, awareness, and confidence to act on those aspirations.
