A big change is going to happen in UPI rules, expenses will be curbed; Know who will be affected

 

UPI New Rule: A big change is going to happen soon in a transaction to UPI. Under this, the pre-approved amount (credit line) in the UPI wallet will now be used only for the purpose for which the bank had approved that loan. This new rule will come into effect from 31 August 2025. The National Payment Corporation of India (NPCI) has recently issued a circular in this regard.

It has been said that now customers will be able to use the credit line on UPI for the same purpose for which it is sanctioned by the bank. This means that if the bank has provided this facility to someone for a specific need, then it has to be used for that need only. NPCI has directed all banks, payment companies and app companies to implement these changes.

Why the rules changed

Let us tell you that the facility of adding credit line on UPI was already provided, but its control and monitoring system was very weak. Many times it was seen that customers do not use this loan for the work for which it has been approved. This was affecting both the banking system and consumer safety. NPCI says that it has been decided to implement this rule to prevent misuse of this facility.

What is the new rule of NPCI?

• The loan should be used only for the purpose for which the bank has approved it. For example, if someone has taken a loan for studies, then they will not be able to spend it anywhere else through UPI.
• The bank will decide which transactions to approve and which to reject. This decision will be taken by the bank keeping in mind its policy and the purpose of that loan.
• If the customer uses that credit line for the wrong purpose, the bank will be able to stop it. This arrangement is considered to be the biggest feature of this new rule.

What is credit line facility?

Earlier, only savings account, wallet or Rupay credit card could be linked through UPI. But later, credit line facility was also added. This is a type of loan, which is pre-approved by the bank for its customers. In this, just like a credit card, a fixed amount is fixed for the customer to spend. If the user does not have money in his savings account or UPI wallet, then he can use this loan amount for payment whenever he needs it. Banks charge some amount in the form of interest on the amount spent.