New security protocols for India’s Unified Payments Interface took effect on June 1, requiring enhanced authentication for high-value transactions and tightening rules around ATM withdrawals. The National Payments Corporation of India introduced the changes to strengthen fraud prevention as the digital payments network processes record volumes.
Under the updated framework, high-value UPI transactions now require additional verification beyond the standard UPI PIN. Users may be asked to authenticate payments through biometric methods such as fingerprint or facial recognition, or through device-based security checks. The system will also display the recipient’s verified bank-registered name before transaction completion, a measure designed to reduce fraud and accidental payments.
The security overhaul follows the Reserve Bank of India’s Authentication Mechanisms for Digital Payment Transactions Directions, 2025, which mandates two-factor authentication for all domestic digital payments with at least one dynamic factor per transaction.
Cardless cash withdrawals through UPI at ATMs will now count toward banks’ monthly free withdrawal limits starting June 1. HDFC Bank, for instance, charges ₹23 per transaction beyond the free limit. Punjab National Bank and Bandhan Bank are also revising ATM-related fees from this date.
The timing coincides with UPI’s strongest performance to date. NPCI data shows the platform processed 23.2 billion transactions worth ₹29.90 lakh crore in May 2026, surpassing April’s 22.35 billion transactions valued at ₹29.03 lakh crore. The figures represent a 24 percent year-on-year increase in volume, driven by summer travel, IPL 2026, and seasonal consumer spending.
Daily average transaction volumes rose to 748 million from 745 million in April. Akash Sinha, co-founder and CEO of Cashfree Payments, said the latest figures highlight the continued strength of demand across the UPI ecosystem.
NPCI has advised users to update their UPI apps to the latest version and verify recipient details carefully before completing payments. The standard daily UPI transaction limit remains ₹1 lakh for most peer-to-peer and merchant transfers, though higher limits up to ₹10 lakh apply for select categories including tax payments, educational fees, and healthcare.
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