UPI Transactions to get Faster: Know Impact on Users, Merchants
According to a circular issued by NPCI on April 26, 2025, the response time for core UPI APIs such as "Request Pay" and "Response Pay" has been halved.
Consumers across India can now expect significantly faster Unified Payments Interface (UPI) transactions, particularly for merchant payments, thanks to a key software upgrade implemented by the National Payments Corporation of India (NPCI). Effective from June 16, 2025, the upgraded system has slashed UPI API response times by up to 66%, enhancing both the speed and reliability...
Consumers across India can now expect significantly faster Unified Payments Interface (UPI) transactions, particularly for merchant payments, thanks to a key software upgrade implemented by the National Payments Corporation of India (NPCI). Effective from June 16, 2025, the upgraded system has slashed UPI API response times by up to 66%, enhancing both the speed and reliability of digital payments.
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The changes target the backend communication between the remitter and beneficiary banks—essentially the technical process that validates, confirms, and sometimes reverses a UPI transaction. Until now, this process took anywhere between 15 to 30 seconds. With the new upgrade, response times have been cut down to 10–15 seconds, enabling quicker confirmations and faster resolution of failed transactions.
According to a circular issued by NPCI on April 26, 2025, the response time for core UPI APIs such as "Request Pay" and "Response Pay" has been halved from 30 seconds to 15 seconds. Other functions like checking transaction status, transaction reversals, and address validation have seen similar improvements, with response windows reduced to just 10 seconds.
Industry experts have welcomed the move, emphasizing its far-reaching impact. The reduced API response times will help UPI handle higher volumes without delays. This upgrade would benefit not just users of major banking apps but also those from smaller or regional banks.
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For users, this means UPI payments at shops, restaurants, and online platforms will now go through more swiftly. In cases where a transaction fails, refunds will also reflect in the customer’s account much faster, reducing anxiety and inconvenience. For merchants, faster payments mean quicker order confirmation and improved customer satisfaction.
The upgrade is part of the NPCI strategy to scale UPI to 1,000 crore monthly transactions by 2026—without compromising on cost, reliability, or speed.
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