Starting today, August 1, India’s financial sector is undergoing significant changes across several key areas, including UPI, credit cards, banking laws, and market trading hours. These updates, driven by the RBI, NPCI, and the government, aim to enhance system efficiency, improve governance, and provide better user protection.
UPI Rules Tighten with Daily Limits and Fixed AutoPay Slots
To alleviate server strain and improve the overall reliability of the UPI platform, the NPCI has implemented new rules that introduce daily limits and fixed timings for certain transactions.
- Balance Check Limits: Users are now capped at 50 balance inquiries per day per UPI app. A separate limit of 25 daily checks has been set for viewing linked bank accounts. This measure is intended to curb high-frequency, automated checks that can overload the system.
- AutoPay Timing: UPI AutoPay transactions will now be processed in designated non-peak hours. The new fixed slots are before 10:00 AM, between 1:00 PM and 5:00 PM, and after 9:30 PM. This change is expected to improve the success rate of recurring payments by moving them out of high-traffic periods.
- Delayed Status Checks: Payment service providers are required to delay repeated transaction status checks. This is a further step to reduce server load and ensure a smoother experience for all users.
Repo and TREP Trading Hours Extended
The Reserve Bank of India (RBI) has extended the trading hours for market repo and Tri-Party Repo (TREP) operations by one hour, from 9:00 AM to 4:00 PM. This extension is a strategic move to boost liquidity and offer more flexibility to participants in the short-term money markets. While the hours for these specific markets have changed, trading hours for government securities, foreign exchange, and interest rate derivatives will remain the same.
SBI Credit Cards Discontinue Complimentary Air Accident Insurance
SBI Cards has removed the complimentary air accident insurance benefit from a number of its co-branded credit cards. This change affects several cards, including the:
- UCO Bank SBI Card ELITE
- Central Bank of India SBI Card ELITE
- PSB SBI Card ELITE
- KVB SBI Card ELITE
- KVB SBI Signature Card
- Allahabad Bank SBI Card ELITE
These cards will no longer offer the ₹1 crore air accident cover. Similarly, a ₹50 lakh cover on certain PRIME and Platinum variants with partner banks has also been withdrawn. Cardholders who relied on this benefit for travel insurance are advised to seek alternative coverage.
Key Sections of the Banking Laws (Amendment) Act, 2025 Now in Effect
Several sections of the Banking Laws (Amendment) Act, 2025, have been enforced, with a focus on modernizing banking regulations and strengthening the financial system. Key provisions include:
- Minimum Paid-up Capital: The minimum paid-up capital for banks has been increased from ₹5 lakh to ₹2 crore.
- Director Tenure: The maximum tenure for directors of co-operative banks has been extended to 10 years.
- Auditor Appointments: The process for appointing bank auditors will now be aligned with the Companies Act, 2013, to enhance audit quality.
- Unclaimed Funds: State Bank of India and other nationalized banks are now mandated to transfer unclaimed dividends and unpaid amounts to the Investor Education and Protection Fund (IEPF).