UPI continues to evolve as India’s most preferred digital payment method, offering fast, secure, and convenient transactions. With the latest updates, ranging from enhanced security features to app usage limits, users can expect a more streamlined and safer payment experience. Staying informed about these changes ensures you can use UPI efficiently and securely for all your daily financial needs.
Related UPI Articles:
1. UPI Transaction Charges
2. Offline UPI Payment
3. How to Reverse Wrong UPI Transactions?
4. BHIM UPI Payments App
5. Fake UPI Payment
UPI: Unified Payments Interface – Instant mobile payments
Updated on: Aug 19th, 2025
|
2 min read
India has taken a major step towards achieving a cashless economy with the advent of the Unified Payment Interface (UPI). The new payment model allows you to use your smartphones as a virtual debit card. It has also made possible the sending and receiving of money instant. The concept of QR code has eliminated the usage of digital wallets altogether.
UPI Collect Request Ban from October 1, 2025
From 1 October 2025, the National Payments Corporation of India (NPCI) has banned peer-to-peer (P2P) UPI Collect transactions. The feature, which allowed users to request money from friends or contacts, is being discontinued due to rising fraud cases. Verified merchants can continue to use collect requests, but individuals will no longer be able to generate P2P requests.
What is UPI?
UPI is a single platform that merges various banking services and features under one umbrella. A UPI ID and PIN are sufficient to send and receive money. Real-time bank-to-bank payments can be made using a mobile number or virtual payment address (UPI ID).
Who initiated UPI?
UPI is an initiative taken by the National Payments Corporation of India (NPCI) together with the Reserve Bank of India and Indian Banks Association (IBA). NPCI is the firm that handles RuPay payments infrastructure, i.e. similar to Visa and MasterCard. It allows different banks to interconnect and transfer funds. Immediate Payments Service (IMPS) is also an initiative of NPCI. UPI is considered as the advanced version of IMPS.
New UPI Features in 2025
The National Payments Corporation of India (NPCI) and RBI have introduced new UPI rules effective 1 August, 2025 to improve security, reduce server load, and make digital payments more seamless.
- Available balance auto-shown after every UPI transaction.
- Payee’s registered name must be displayed before confirming transfers.
- Users can now link up to 25 bank accounts per day on a single UPI app.
- Pending status checks limited to 3 attempts with a 90-second gap.
- Auto-debits (EMIs, SIPs, subscriptions) processed only in non-peak hours.
- Balance check requests capped at 50 times per day per app.
What is UPI ID and PIN?
A UPI ID is a unique identification for a bank account that can be used to send and receive funds. UPI PIN is a 4-digit personal identification number that must be entered to authorise the transfer of money via UPI. The PIN can be chosen by the account holder.
How does UPI work?
UPI has made the money transfer process a lot easier. You do not have to remember the receiver’s account number, account type, IFSC, and bank name. Instead, you can do the money transfer only by knowing their Aadhaar number, mobile phone number registered with the bank account, or UPI ID.
You can set up UPI ID on one of the apps that support UPI service. Mostly, a UPI ID begins with your mobile number followed by ‘@’ symbol and ends with the app you are using. For example, if your mobile number is 90xxxxxx60 and if you are using Paytm app, the UPI ID can be ‘90xxxxxx60@paytm’.
How to set up a UPI ID?
- The ID can be set up by providing the details of your bank account on the app.
- The app will send an OTP to your registered mobile number to make sure that you are an authorised person. Once you enter the OTP, you will be prompted to create a PIN for the UPI ID.
- Upon completing the registration, you can choose any mobile number from your contacts and send money. You can also request money from anyone on your contacts list.
What are the features and benefits of using UPI?
- Online payments are simplified.
- Pay for your hailing services, food delivery services, and shopping sites with UPI payments for instant fund transfer.
- Pay at the nearest restaurants, grocery stores, and departmental stores online.
- Rent, mobile recharge, and utility bill payments can be done online instantly.
Is it secure?
UPI transactions use highly secure encryption format that is not easy to tamper. NPCI’s IMPS network handles about Rs.8,000 crore worth transactions every day. This is expected to exponentially increase with UPI technology. It uses a two-factor authentication method, similar to OTP, for verifying every transaction. However, UPI PIN will be used in the place of OTP for validation.
In July 2025, NPCI proposed allowing biometric UPI authentication (via Face ID or fingerprint), which would remove the need to manually enter the UPI PIN. If implemented, this would enhance convenience and significantly reduce UPI-related fraud. Each transaction would be tied directly to the user’s physical identity. The rollout is still pending as it requires robust data privacy safeguards and device-level compatibility.
Banks that support UPI
The major banks that support UPI services are:
- State Bank of India (SBI Pay)
- ICICI Bank (iMobile)
- HDFC Bank (HDFC Bank MobileBanking)
- Axis Bank (Axis Pay)
- Bank of Maharashtra (MahaUPI)
- United Bank of India (United UPI)
- Vijaya Bank (Vijaya UPI)
- Union Bank of India (Union Bank UPI)
- Federal Bank (Lotza)
- UCO Bank (UCO-UPI)
- Yes Bank (Yes Pay)
- Karnataka Bank (KBL Smartz)
- Punjab National Bank (PNB UPI)
- Bank of Baroda (Baroda MPay)
- South Indian Bank (SIB M-Pay)
What apps allow UPI usage?
Popular apps supporting UPI include Google Pay, PhonePe, Paytm, BHIM, FreeCharge, Amazon Pay, and Mobikwik. These apps comply with NPCI’s UPI guidelines and allow users to verify their bank details, create a UPI ID, and begin transacting instantly. Starting 1 August 2025, these apps are also required to:
- Display the payee's bank-registered name before a transfer.
- Limit balance checks to 50 per day.
- Allow linking up to 25 bank accounts per user per day.
Browse by topics
Related articles
Popular articles
Products
Individuals
ClearServices
Resources & Guides
GST Resources
ITR Resources
Mutual Fund Resources
Tools
TRENDING MUTUAL FUNDS
ICICI Prudential Technology Fund Direct Plan Growth
Tata Digital India Fund Direct Growth
Axis Bluechip Fund Growth
ICICI Prudential Technology Fund Growth
Aditya Birla Sun Life Tax Relief 96 Growth
Aditya Birla Sun Life Digital India Fund Direct Plan Growth
Quant Tax Plan Growth Option Direct Plan
SBI Technology Opportunities Fund Direct Growth
Axis Long Term Equity Fund Growth
TOP AMCS
STOCK MARKETS
Clear offers taxation & financial solutions to individuals, businesses, organizations & chartered accountants in India. Clear serves 1.5+ Million happy customers, 20000+ CAs & tax experts & 10000+ businesses across India.
Efiling Income Tax Returns(ITR) is made easy with Clear platform. Just upload your form 16, claim your deductions and get your acknowledgment number online. You can efile income tax return on your income from salary, house property, capital gains, business & profession and income from other sources. Further you can also file TDS returns, generate Form-16, use our Tax Calculator software, claim HRA, check refund status and generate rent receipts for Income Tax Filing.
CAs, experts and businesses can get GST ready with Clear GST software & certification course. Our GST Software helps CAs, tax experts & business to manage returns & invoices in an easy manner. Our Goods & Services Tax course includes tutorial videos, guides and expert assistance to help you in mastering Goods and Services Tax. Clear can also help you in getting your business registered for Goods & Services Tax Law.
Save taxes with Clear by investing in tax saving mutual funds (ELSS) online. Our experts suggest the best funds and you can get high returns by investing directly or through SIP. Download Black by ClearTax App to file returns from your mobile phone.
Office Address - Defmacro Software Private Limited, C 245A, Ground floor, Room No 1, Vikas Puri, West Delhi, New Delhi, Delhi 110018, India
Cleartax is a product by Defmacro Software Pvt. Ltd.
ISO 27001
Data Center
SSL Certified Site
128-bit encryption