The RBI has issued new UPI transaction regulations that will go into effect on August 1, 2025. The UPI transaction guidelines are expected to make the digital payment system safer and convenient to the citizens of the country. Among the most notable modifications, it is possible to mention updated limits, increased authentication, and instant dispute resolving. These rules that govern UPI transactions are important to making smooth transactions.

Highlights

• Daily peer-to-peer transaction limits increase to ₹5 lakh.
• Transfers exceeding ₹1 lakh require biometric or two-factor authentication.
• First-time payments to new contacts trigger a 4-hour delay.
• Auto-blocking will prevent payments to suspicious accounts.
• Dispute resolution timelines reduce to 24 hours.

The UPI transaction limits are increasing the daily limits, especially the payment to the healthcare and education industry (up to 5 lakh in India). This fulfills necessary high value needs and security is observed. Transfers above 1 lakh would require the user to identify through biometrics.

The UPI transaction regulations focus more on fraud prevention. The new payee cooling off is compulsory and this decreases the chances of impersonation. Phishing threats are curbed by auto-blocking potentially hazardous accounts. OTP validation allows users to bypass the delay in the case of the trusted contacts.

The new UPI transaction guidelines cut down the refund process to 24 hours. An increase in limits is beneficial to businesses, although with a large number of new-payee transactions there can be some temporary delays. The modifications strengthen the security system of UPI but not its effectiveness.