The central government has a treat in store for UPI users. The National Payments Corporation of India has revised the guidelines for UPI payments, allowing users to transfer amounts related to gold loans, business loans, and fixed deposits across the country. Borrowers can now link their loan accounts to their UPI IDs, enabling seamless payments from credit cards to business loans via popular apps like Paytm, PhonePe, and Google Pay. This enhancement will be effective starting September 1, 2025. The NPCI has been steadily working to keep the UPI network user-friendly, adaptable, and safe. As part of these ongoing efforts, the latest change widens the types of accounts that can be used for transactions. At present, users can link only savings accounts or overdraft facilities, and while a limited number of RuPay credit cards can be integrated, the option remains rare. The revised guidelines mean that gold loans and personal loan amounts can be disbursed online, allowing customers to receive funds without stepping foot in a branch.How will you get the new service? At the moment, UPI lets you transfer up to ₹2,000, but once the new rules kick in, you’ll be able to send money in larger ₹2,000-to-₹2,000 chunks, plus pull out cash when you need it. The National Payments Corporation of India, or NPCI, has laid down a few ground rules to keep things smooth. You’ll still be limited to ₹1 lakh in total payments each day, and cash withdrawals will be capped at ₹10,000 a day. On the transfer side, you can make up to 20 person-to-person payments in that same daily cycle. Your bank will also step in to decide where the UPI money can land. Let’s say you take out a personal loan; the bank could set it up so you can only use that money for specific bills like hospital fees or school tuition. This change is a big win for small business owners. If you get a ₹2-3 lakh business loan and need to pay suppliers or utilities, you used to have to keep running back to the bank for each slip. Under the new setup, you’ll be able to settle those bills on the spot—outside the bank—keeping your day a little less hectic.
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