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UPI New Rules: The Government of India, the Reserve Bank of India (RBI), and NPCI have decided to implement new UPI rules from February 2026. These new rules aim to make transactions faster.

Digital payments in India have become an integral part of our daily lives. From buying vegetables to online shopping, paying electricity bills, and sending money to friends, UPI is used everywhere. Therefore, any change in UPI rules affects millions of people.

Keeping this in mind, the government, the Reserve Bank of India (RBI), and NPCI have decided to implement new UPI rules from February 2026. The aim of these new rules is to make transactions faster, increase protection against fraud, and give users more control over their money and payments. If you use Google Pay, PhonePe, Paytm, or any other UPI app, let's find out which new UPI rules are being implemented from February.

UPI Payments Will Now Be Even Faster

Under the new rules, UPI transactions and API responses must be completed within 10 seconds. Previously, this time limit was 30 seconds, which often caused payments to get stuck or delayed. The advantage now is that payments will be completed faster, there will be fewer transactions stuck in Pending or Processing status, and the system will work better even during peak hours (such as during sales or at the end of the month). This will provide relief to both customers and merchants.

What is an API?

API stands for Application Programming Interface. You can understand it as a means of communication between two apps or systems. When you make a UPI payment, your UPI app asks your bank if there is enough money in the account, and then it tells the recipient's bank to accept the money. This entire communication happens through the API. Now that the API will be faster, the entire payment process will also be quicker and smoother. Emphasis on Security and Greater Control for Users

Security will be the top priority in the new UPI rules for 2026, especially for large-value transactions. Key changes include clear confirmation messages before payment, enhanced security for auto-payments and subscriptions, and the ability for users to easily view, manage, and cancel their subscriptions. This will reduce the likelihood of incorrect deductions and fraud.

Inactive UPI IDs May Be Suspended

If your UPI ID has not been used for a long time, it may be temporarily suspended. This will be referred to as a dormant UPI ID. To reactivate it, the user will need to undergo re-verification. The purpose of this rule is to prevent the misuse of old and forgotten accounts. Now, if a UPI payment fails or gets stuck, banks and apps will have to resolve the issue within a few hours. Users will be clearly informed whether the money was debited, where it is stuck, and when it will be refunded. This will reduce both user frustration and confusion.

UPI's Record Performance

The government informed Parliament that transactions worth ₹230 lakh crore were conducted through UPI by December of the current financial year. This figure is significantly higher than the ₹139 lakh crore recorded in 2022-23. This clearly demonstrates the growing trust in UPI. UPI is no longer limited to India. Currently, it is being used in 8 countries, including Bhutan, France, Mauritius, Nepal, Qatar, Singapore, Sri Lanka, and the United Arab Emirates. The government and NPCI are working together to facilitate person-to-person (P2P) and person-to-merchant (P2M) payments abroad. According to an IMF report (June 2025), UPI is the world's largest real-time retail payment system. According to the ACI Worldwide report 2024, UPI accounts for approximately 49 percent of the world's total real-time digital payments.