Synopsis: From June 16, 2025, UPI transactions will be processed faster as NPCI mandates stricter timelines for banks and payment apps. This move comes in response to multiple outages and aims to improve reliability and user experience.
The National Payments Corporation of India (NPCI) has issued a new directive to overhaul UPI transaction processing standards, aiming to deliver faster, smoother digital payment experiences for users. As per a circular dated April 26, 2025, all banks and UPI-enabled payment apps like GPay, PhonePe, Paytm, and others must implement these upgraded processing rules starting June 16, 2025.
The initiative comes in the wake of multiple UPI outages in March and April 2025, including three major disruptions on March 26, April 1, and April 12. These service interruptions caused significant inconvenience to millions of users, prompting urgent action from NPCI.
What’s Changing from June 16?
NPCI has tightened the response timelines for key aspects of UPI services:
- Faster payment processing
- Quicker transaction verification
- Accelerated failure reversal timelines
Banks and apps have been cautioned to ensure these changes do not compromise system stability or lead to a rise in technical declines.
Why This Move Was Necessary
UPI handles over Rs 25 lakh crore in digital transactions each month, and any glitch can have a ripple effect across the economy. Investigations by NPCI into recent outages revealed that the root cause was a technical oversight — the lack of a transaction status check limiter in the system’s design.
This flaw allowed several PSP (Payment Service Provider) banks to flood NPCI’s systems with repeated ‘Check transaction’ requests, including for older transactions, leading to system congestion and eventual failure.
The Road Ahead for UPI
This update marks a pivotal step in strengthening UPI’s infrastructure. NPCI’s focus is not just on speed, but also stability and scalability. With UPI expanding internationally and integrating with other payment systems, ensuring a resilient backbone becomes more crucial than ever.
Disclaimer: This article is for general informational purposes only and does not constitute financial or technical advice. Users should check official NPCI or bank notifications for specific implementation updates
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