Hospitality Herald

As the Indian economy continues its digital transformation, significant regulatory and operational changes have been introduced across the UPI system, banking, insurance, and broader financial sectors effective from August 1, 2025. These updates are aimed at improving transaction efficiency, enhancing customer protection, and strengthening systemic security. Here’s a detailed breakdown of these changes and what they mean for individuals and businesses.

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UPI (Unified Payments Interface) System Limits

1. Balance Inquiry Limit: Max 50 per User/Day

What it means: A UPI user can now check their account balance a maximum of 50 times per day across any UPI-enabled app (like GPay, PhonePe, Paytm, etc.).

Example: If you check your bank balance using Google Pay 50 times before noon, you won’t be able to perform another balance inquiry on any other UPI app until the next day.

Why this matters:

• Prevents system overload due to repeated queries.
• Reduces misuse from automation or bots.

2. Linked Account Fetch: Max 25 per User/Day

What it means: You can fetch or refresh the list of your bank accounts linked to a UPI ID up to 25 times in a day.

Example: Let’s say you uninstall and reinstall your UPI app multiple times in a day. Each time you log in and link your bank account, it counts toward this limit. After 25 fetches, no further linking or refreshing is allowed that day.

Why this matters:

• Prevents misuse by fraudulent apps mimicking UPI screens.
• Helps banks and NPCI avoid performance issues.

3. Transaction Status Check: Max 3 per Transaction (90 seconds gap required)

What it means: After initiating a UPI payment, you can check its status (pending/success/failed) only three times, with at least 90 seconds between each attempt.

Example: If a payment seems stuck, you can click “Check Status” in your app, but doing this repeatedly without waiting will be restricted.

Why this matters:

• Reduces server load.
• Prevents users from unintentionally triggering a transaction retry that could cause double debits.

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Banking Sector Updates

1. Account Aggregator (AA) Framework Expansion

What it means: More banks and financial institutions have joined the Account Aggregator framework, enabling customers to share their financial data securely with lenders and fintech platforms with consent.

Example: When applying for a loan on a fintech app, you can now instantly share income and account data from your bank through the AA platform, speeding up approvals.

Impact:

• Faster credit decisions
• Paperless financial data exchange

2. Standardised Loan Reporting

What it means: All banks must now report loan sanction, disbursement, and repayment data in a standardised format to credit bureaus.

Example: If you repay an EMI today, it will reflect more accurately and faster in your credit score.

Impact:

• Greater transparency
• Faster score updates

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Insurance Sector Changes

1. IRDAI Introduces Bima Sugam (One-Stop Insurance Marketplace)

What it means: A digital platform named Bima Sugam has been launched to help customers compare, buy, and manage policies from various insurers in one place.

Example: A user looking for health insurance can visit Bima Sugam, compare options from LIC, HDFC, ICICI, etc., and buy instantly without paperwork.

Benefits:

• Uniform claim tracking
• Improved policy portability
• Less mis-selling

2. E-Insurance Mandatory for Policies Above Rs. 10,000 Premium

What it means: All life and health insurance policies with annual premiums above Rs. 10,000 must now be issued and stored digitally.

Example: If your policy premium is Rs. 12,000/year, it will be issued in an e-format and must be accessed via an insurance repository or DigiLocker.

Impact:

• Paperless processing
• Safer record keeping

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Broader Financial Sector Developments

1. SEBI’s New Rules on Finfluencers

What it means: Social media influencers who give financial advice or recommend stocks must register with SEBI and disclose partnerships or conflicts of interest.

Example: If an Instagram influencer suggests investing in a particular mutual fund, they must now reveal whether they are paid to promote it.

Impact:

• More trustworthy financial content
• Lesser risk of fraud

2. Gold Loan Norms Tightened

What it means: NBFCs must now conduct stricter valuation of gold and disclose actual Loan-to-Value (LTV) ratio transparently.

Example: If you pledge 20 grams of gold, the NBFC must document its purity and market price before granting the loan.

Impact:

• Reduces risk of over-lending
• Protects consumers in volatile markets

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Final Thoughts

These new regulations from August 1, 2025, are not meant to burden users but rather to enhance trust, reduce fraud, and promote smoother digital interactions in India’s fast-growing financial ecosystem. Whether you are a business, a hospitality operator handling UPI, or a parent managing your family’s insurance and finances, understanding these changes can help you make better decisions.

Stay tuned to Hospitality Herald for more such updates and insights.