In today's world, digital payments have become a crucial part of our lives in India. Whether it's buying vegetables, shopping online, or paying electricity bills, UPI is used everywhere. This is why any changes to its rules directly impact millions of people. Considering this, the government, the Reserve Bank of India, and NPCI have decided to implement some new rules from February 2026. The main objective of these changes is to make the payment system faster and provide users with even greater security. These changes are very important for anyone using apps like Google Pay, PhonePe, or Paytm.
UPI Payments Will Now Be Even Faster
According to the new rules, UPI transactions and related system responses must now be completed within 10 seconds. Previously, this process could take up to 30 seconds, which often led to payments getting stuck or delayed. The reduced time will result in faster payments and fewer pending transactions. This will greatly benefit both customers and merchants, as the system will be able to handle transactions more efficiently, even during peak hours.
What is API and its Impact?
API stands for 'Application Programming Interface'. In simple terms, it's a way for two apps or systems to communicate with each other. When someone makes a UPI payment, the app retrieves balance information from the bank and then sends a message to the other bank to receive the money. This entire process happens through the API. This system has now been made even faster, making the entire process of sending and receiving money much easier and smoother.
Security Has Been Prioritized
The new rules, which will come into effect from 2026, place a strong emphasis on security. Especially for large payments, clear confirmation messages will be displayed before the transaction is completed. New security features have also been added for auto-payments and subscriptions. Now, users will be able to view, manage, or cancel any subscription at their discretion. This will significantly reduce the chances of unauthorized deductions or any kind of fraud.
Old UPI IDs may be deactivated
If a user does not use their UPI ID for a long period, it may be temporarily deactivated. Such IDs will be considered 'dormant'. To reactivate it, the user will have to verify their identity again. This step has been taken to prevent misuse of old and forgotten accounts. Additionally, if a transaction fails, banks and companies will have to resolve it within a few hours. Customers must also be informed whether the money has been deducted or not, and if it is stuck, when it will be refunded.
The expanding reach of UPI
The government informed Parliament that transactions worth approximately ₹230 lakh crore have been conducted through UPI by December of this year. This figure is significantly higher than in previous years, indicating growing public trust in the system. UPI is no longer limited to India but is also being used in countries like France, Mauritius, Nepal, Singapore, and the United Arab Emirates.
The world's largest payment system
The government and NPCI are working together to further simplify payment facilities abroad. According to reports from international organizations, UPI has now become the world's largest real-time retail payment system. UPI alone accounts for approximately 49 percent of all digital payments worldwide. With the introduction of these new rules, it is expected that this system will become even more secure and reliable.
