New UPI rules from 1 August: What are the changes for Indian users? Here’s everything you need to know

The new UPI rules is set to be implemented today, August 1. These regulations will further improve UPI apps and protect users from scams. They will be applied to all payment service providers, such as Google Pay, PhonePe, or Paytm, and are being implemented by the National Payments Corporation of India (NPCI).

Activities such as checking bank details, executing autopayments, and monitoring bank balances will be governed by the new regulations. All of these modifications would enhance the functionality of UPI applications, according to a circular released by NPCI on May 21.

How to check the balance?
Users will be able to check their bank balance 50 times a day using each UPI app. In order to lessen the strain on UPI during busy hours, UPI apps will also have the ability to restrict or halt balance inquiry requests.  Users will be able to view their account's available balance with each transaction starting in August.

Automatic payment
Banks can automatically deduct a specific amount from customers' accounts regularly by using auto payments. Autopayments, however, might put more strain on the Application Programming Interface (API) system if they are made during busy times. As a result, NPCI has ordered that these transactions can only be completed before 10 am, between 1 and 5 pm, and after 9:30 pm. This implies that an autopayment that is due at 11 am may be deducted either before or after that time. Furthermore, if the auto pay deduction is successful, retries will be offered; otherwise, the auto payment will be terminated.

Bank details
The list of banks associated with their cellphone number will be visible to customers. They are limited to 25 daily checks of the bank's information. Customers must begin requests after choosing the issuer's bank via the UPI app, and they will only be allowed to view their bank details during specific hours.

Transaction details
Transactions are frequently made at busy times, when clients frequently feel that funds have been taken out of their accounts but have not yet been received by the recipient. These unconfirmed payments will no longer appear as pending after August; instead, they will have a time window to update within seconds. There will be a 90-second lag between the user's three attempts to check the payment status.

Recipient's details
Before every transaction, the sender will be presented with the recipient's name. This is to prevent fraud or money being sent to the incorrect person. On the UPI app, the transaction ID will be displayed beside the recipient's registered name.

The circular also states that NPCI may take any required steps, such as restricting access to the UPI API, imposing fines, suspending new clients or onboarding, or taking other appropriate action, in the event that these instructions are not followed. By implementing these regulations, NPCI hopes to improve online payment efficiency and lower the number of fraud incidents.