UPI Transactions to Get Faster from June 16, 2025: Here's What You Need to Know

The National Payments Corporation of India (NPCI) has announced a major upgrade for UPI users: starting June 16, 2025, UPI transactions will become significantly faster. The initiative, as detailed in a circular issued on April 26, aims to offer a smoother and more efficient digital payment experience.

What’s Changing in UPI Response Times?

NPCI’s new guidelines aim to streamline multiple services on the UPI platform. According to the circular:

• The response time to check the status of a transaction will be reduced from 30 seconds to 10 seconds.

• Reversing a UPI payment will now take just 10 seconds, down from the earlier 30.

• The request pay and response pay functions (used to send or receive money) will have a reduced response time of 15 seconds, compared to the current 30 seconds.

• Address validation time will also be cut down from 15 seconds to 10 seconds.

These changes are intended to speed up core UPI features, including transaction queries, reversals, and fund transfers.

Why Is NPCI Making These Changes?

With UPI emerging as India’s most popular digital payment system, the focus is on optimizing user experience. NPCI has directed banks and payment service providers (PSPs) to upgrade their systems to comply with the new response time requirements.

NPCI's Official Statement

In the circular, NPCI noted:

“Aforementioned revisions are intended to improve the customer experience. The members are required to ensure that they make the necessary changes in their system so that that responses are handled within the revised time.”

Additionally, the circular stated:

“Further, members are requested to ensure that the changes to the response time should not adversely impact the technical decline (TD) thresholds.”

Addressing Recent Technical Glitches

This move also comes after a technical issue on April 12, where several users reported failed UPI transactions. NPCI addressed the issue in a post on X (formerly Twitter):

“NPCI is currently facing intermittent technical issues, leading to partial UPI transaction declines. We are working to resolve the issue, and will keep you updated. We regret the inconvenience caused.”

This recent glitch further underlines the need for faster and more reliable systems.

About National Payments Corporation of India (NPCI)

The National Payments Corporation of India (NPCI) is the umbrella organization that operates retail payments and settlement systems in India.1 Established in 2008 as a "not-for-profit" company under Section 8 of the Companies Act 2013, NPCI was initiated by the Reserve Bank of India (RBI) and the Indian Banks' Association (IBA) under the provisions of the Payment and Settlement Systems Act, 2007.23 Its primary goal is to create a robust, secure, and efficient payment infrastructure in the country, promoting a less-cash economy and enhancing financial inclusion.4

Key Objectives of NPCI:

• To provide affordable and robust payment systems for the common person.

• To integrate various payment systems into nationwide uniform and standard business processes.

• To improve operational efficiency and expand the reach of retail payment systems through innovation and technology.

Key Functions of NPCI:

• Design and Development of Payment Systems: NPCI is responsible for creating and operating key payment systems in India, including UPI, IMPS, RuPay, NACH, and BBPS.5

• Interbank Settlement: It acts as an intermediary for settling interbank transactions, ensuring the smooth transfer of funds.6

• Setting Rules and Guidelines: NPCI prescribes the rules, regulations, and guidelines for the operation of its various payment systems.7

• Approving Participants: NPCI approves the participation of banks, Payment Service Providers (PSPs), and Third-Party Application Providers (TPAPs) in its systems.8

• Ensuring Security and Efficiency: NPCI is committed to providing a safe, secure, and efficient payment infrastructure.9

• Dispute Management: It plays a role in dispute resolution for transactions processed through its systems.10

• Promoting Financial Inclusion: NPCI develops payment solutions that cater to the underbanked and unbanked populations.11

Major Initiatives by NPCI:

• Unified Payments Interface (UPI): A real-time payment system allowing users to transfer funds instantly between bank accounts using a mobile phone.12

• RuPay: India's domestic card scheme, offering debit, credit, and prepaid cards.13

• Immediate Payment Service (IMPS): Enables instant fund transfers between banks 24/7.

• Aadhaar enabled Payment System (AePS): Allows financial transactions using Aadhaar authentication.14

• National Automated Clearing House (NACH): Facilitates bulk transactions like salary payments and utility bill collections.15

• Bharat Bill Payment System (BBPS): An integrated platform for paying various utility bills.16

• National Electronic Toll Collection (NETC): Uses FASTags for automatic toll payments.17

• BHIM (Bharat Interface for Money): A UPI-based mobile payment application developed by NPCI.18

• UPI Lite: An on-device wallet for small-value UPI transactions.19

NPCI has been instrumental in revolutionizing the digital payments landscape in India, making transactions faster, more accessible, and secure.20 Its continuous focus on innovation and financial inclusion has positioned India as a leader in digital payments globally.21

Conclusion 

With UPI being the backbone of India's digital economy, the NPCI's decision to reduce response times for key services marks a pivotal step in enhancing user satisfaction and trust. Beginning June 16, 2025, users can expect faster processing when sending money, checking transaction statuses, or requesting reversals.

These changes, part of NPCI’s latest circular, require banks and payment service providers to implement system upgrades without increasing technical declines. By halving or cutting down the response times, the update is poised to offer quicker resolutions and a more seamless payment experience.

In light of recent transaction issues reported in April, this move also signals NPCI’s commitment to addressing service disruptions proactively. As the digital payments ecosystem in India continues to expand, such improvements are essential for sustaining growth and ensuring reliability for millions of daily users. The new measures reaffirm UPI’s position as a world-class, real-time payment platform backed by evolving infrastructure.