The RBI and NPCI have announced new UPI rules effective from February 2026 to make digital payments faster and more secure. Under the new guidelines, UPI transactions must be completed within 10 seconds, dormant UPI IDs may be temporarily blocked, and users will get clearer information on failed payments.
UPI Transactions to Be Completed Within 10 Seconds Under New Rules
New Delhi: The digital payment system in India has grown exponentially in the past few years. Today, UPI is used everywhere, from buying vegetables to paying at a store, online shopping, paying bills, and sending money to friends. Consequently, any change in UPI regulations directly impacts millions of users.
With this in mind, the government, the Reserve Bank of India (RBI), and the National Payments Corporation of India (NPCI) have decided to implement new UPI regulations from February 2026. These changes aim to make UPI faster, secure, and reliable.
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Under the new regulations, UPI transactions and API responses must be completed within 10 seconds. Previously, this time limit was 30 seconds, which often resulted in payments getting stuck or delayed. With the new regulations in place, payments will be processed faster, pending transactions will be reduced, and the system will function more efficiently even during busy times like sales or month-ends.
API, an application programming interface, serves as a communication between the UPI app, the bank, and the recipient's bank. When you make a payment using UPI, this API determines whether there is a balance in the account and whether the money has reached the correct destination. The speed of the API will make the entire payment process smoother and faster.
Security has been prioritized in the new rules, which will come into effect in February 2026. Clear confirmation messages will be provided, especially before large transactions. Enhanced security will also be added to the auto-payment and subscription systems, allowing users to easily view, manage, and cancel their subscriptions. This will reduce the likelihood of fraud and fraud.
If a UPI ID has not been used for a long time, it may be temporarily dormant. To use it again, the user will need to undergo re-verification. Its purpose is to prevent misuse of old and forgotten accounts.
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Now, if a UPI payment fails or gets stuck, banks and apps will be required to resolve the issue within a few hours. Users will be clearly informed whether the money has been deducted, where it is stuck, and when it will be refunded.
According to the government, UPI has handled transactions worth ₹230 lakh crore in the current financial year through December. UPI is currently used in eight countries, and according to the IMF, it has become the world's largest real-time retail payment system.
