N/A — Industry-wide PSPs
Mumbai, India
The National Payments Corporation of India (NPCI) enforced new UPI rules from August 1, 2025, requiring payment service providers to comply with peak-hour transaction management standards by July 31, 2025. Non-compliant PSPs face graduated enforcement measures including financial penalties, restrictions on API access, and suspension of the ability to onboard new customers. The rules apply to all UPI-linked payment firms and are aimed at ensuring system stability during high-traffic periods. While not directly an EMI action, this impacts the embedded payments and BaaS ecosystem in India by constraining PSP growth and operational capacity for non-compliant firms.
Verified from source: NPCI rolled out new UPI guidelines effective August 1, 2025, including caps on balance enquiries, limits on API usage, and time windows for auto-debits. Payment service providers that fail to comply face penalties, API restrictions, or suspension of new customer onboarding.
- Indian BaaS and embedded payment providers must ensure UPI infrastructure compliance or face growth restrictions
- Suspension of new customer onboarding is a significant operational penalty that could impact fintech partnerships
- Signals NPCI's willingness to use operational restrictions rather than just financial penalties to enforce compliance