India has one of the fastest growing digital payments ecosystems, and all players in the ecosystem are eagerly awaiting the changes in UPI (Unified Payments Interface) transactions in 2025. Your payment experience, whether you are a new or frequent user, will be affected. UPI New Rules 2025 has a lot to track: increased security measures, updated transaction limits, and more.
Improved Security Measures
High-value transactions will now require a multi-factor authentication (MFA) system. To combat fraud, transactions over ₹1 lakh will be subjected to additional security measures put in place by the Reserve Bank of India (RBI). This will significantly contribute to the digitisation of India while thwarting the rising trend of digital payments fraud.
Updated Limits
The new UPI payment limits are set to ₹2 lakhs for daily transactions. Other transactions by certain merchants may exceed these limits as per guidelines set by the RBI. As with any new rules, contact your bank to see what limits would be applicable on your account.
Compulsory KYC (Know Your Customer) Updates
To maintain the user experience, KYC details will have to be updated by June 2025. Non-compliance may result in being unable to use UPI for payments. As always, most banks will notify users of the KYC update via SMS or email.
New Fees for Business Accounts
Business users and merchants transacting using UPI will incur a small fee for larger transactions. Personal UPI transactions remain complimentary. However, businesses will incur a fee of 0.5% for transactions over ₹10,000. These changes are aimed at ensuring the continued advancement of the digital payment ecosystem.
Stricter Fraud Prevention
There are new enhanced rules for monitoring and reporting suspicious banking activities. If a certain pattern of payment is deemed unusual, the account will be temporarily disabled until verification is complete. It is advisable for account holders to notify their bank of any unapproved transactions.
Key Takeaways
- Improved safety protocols for large transactions through multi-factor authentication.
- Personal UPI transactions now have a daily limit of ₹2 lakhs.
- KYC updates will be required by June 2025 to avoid service interruptions.
- New fees for post-₹10,000 UPI transactions for business accounts.
- Enhanced fraud monitoring.
Stay proactive and monitor your systems to adapt to these 2025 changes for a seamless UPI experience. Remember to verify all updates through your bank notifications to avoid missing crucial dates.