New UPI Rules 2025 Explained
The Unified Payments Interface (UPI) has transformed digital transactions in India by providing a quick and effortless method for money transfers. As transactions continue to increase, the Reserve Bank of India (RBI) and the National Payments Corporation of India (NPCI) have established new regulations for UPI in 2025 to improve the efficiency of the system.
What Changes Can be Expected?
The updated UPI regulations for 2025 emphasize:
- The implementation of interchange fees for designated UPI transactions
- Revising transaction limits on a daily, weekly, and monthly basis
- Developing measures to reduce fraud and improve security
- Encouraging the sustainable growth of the UPI ecosystem.
UPI Transaction Limit Per Day in 2025
The daily limit for UPI transactions is expected to be Rs.1 lakh for the majority of individual users. This limit may differ based on the user's profile, transaction history, and the risk evaluation conducted by their respective banks or payment service providers.
Here is the table which shows the expected UPI transaction limits per day:
Bank Name | UPI Transaction Limit Per Day |
State Bank of India (SBI) | Rs.1,00,000 |
HDFC Bank | Rs.1,00,000 |
ICICI Bank | Rs.1,00,000 |
Axis Bank | Rs.1,00,000 |
Kotak Mahindra Bank | Rs.1,00,000 |
Punjab National Bank (PNB) | Rs.50,000 |
Canara Bank | Rs.1,00,000 |
Union Bank of India | Rs.2,00,000 |
IndusInd Bank | Rs.1,00,000 |
Yes Bank | Rs.1,00,000 |
IDFC First Bank | Rs.1,00,000 |
Federal Bank | Rs.1,00,000 |
RBL Bank | Rs.1,00,000 |
Paytm Payments Bank | Rs.1,00,000 |
UPI Transaction Limit Per Week in 2025
Certain banks have established a cap on the maximum amount that can be transferred through UPI on a weekly basis. For example, IDFC has set its weekly UPI transfer limit at Rs.1 lakh.
UPI Transaction Limit Per Month in 2025
Various public and private banking institutions have established a monthly limit for UPI transactions, which differs from one bank to another. For instance, IDFC Bank allows monthly UPI transactions of up to Rs.30 lakh.
Interchange Fees for UPI Transactions
The interchange fees associated with UPI transactions range from 0.5% to 1.1%, contingent upon the nature of the service. A fee of 0.5% is designated for fuel purchases, while a 0.7% fee applies to payments related to post offices, telecommunications, utilities, agriculture, and education. There is a charge of 0.9% on supermarket transactions and there is a fee of 1% that is imposed on payments for insurance, mutual funds, government services, and railway transactions.
What is the Limit for Free UPI Transactions?
Users will not charge any fees for UPI transactions amounting to less than Rs.2,000. Additionally, it is expected that peer-to-peer (P2P) transactions will also remain free of charge.
How Will the 2025 UPI Rules Solve Existing Issues?
Here are some of the modifications such as:
- Revenue for Service Providers: Payment systems will be able to continue operating because of interchange fees.
- Prevention of Fraud: New transaction restrictions will reduce overall fraud.
- Infrastructure Stability: Reducing the number of free transactions will improve the burden on banking systems.
- Sustainable Growth: These changes will boost the long-term potential of the UPI ecosystem.
FAQs on New UPI Rules 2025
- What will be the 2025 daily limit for UPI transactions?
For many customers, the daily limit is expected to be Rs.1 lakh.
- How will merchants be affected by the new UPI regulations?
Customers will not be affected by the minor interchange fee that merchants may pay on transactions over Rs.2000.
- Have there been any changes to P2P UPI transactions?
No, P2P transactions will not be affected by the new rules.
- What justifies the implementation of interchange fees?
To support payment service providers and ensure the long-term possibility of the UPI ecosystem.
- In what ways will the new rules improve UPI security?
The new regulations aim to protect users, increase the charge of high-value transactions, and reduce the danger of fraud.
NPCI’s New UPI Rules for Google Pay, PhonePe, Paytm Users
In order to address the issue of misdirected payments, the National Payments Corporation of India (NPCI) has taken an important step. All UPI apps are required under the new rule to make sure that the pre-transaction details page only shows the name of the person who wants to receive the money. The name needs to be obtained directly from a safe source, such as the Validate Address API's banking name. The effective date of this new regulation is 30 June 2025. It will apply to both Peer-to-Peer (P2P) and Peer-to-Peer Merchant (P2PM) transactions. The primary goal is to give UPI users accurate information about account holders in order to protect their money and clear up any confusion. You will be informed before the transaction being executed if you make an online payment and mistakenly select the wrong contact. Users of common apps across the country, like Google Pay, PhonePe, Paytm, and BHIM, will get a lot of benefit from this initiative.
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