Your UPI transaction will be faster now. Here is why

Unified Payments Interface (UPI) transactions will now be faster, with a sharp decrease in response time from 15 to 30 seconds to a mere 8 seconds, depending on network load and efficiency.

This is due to a key infrastructure upgrade by the National Payments Corporation of India (NPCI).

The upgrade, according to media reports, is expected to make digital transaction quicker and more efficient for the over 350 million users in India.

In a circular dated April 26, the NPCI stated that it has implemented new turnaround time (TAT) standards for critical API that form the core of UPI’s technological basis.

It is through these APIs, data is exchanged between the payer’s bank, the payee’s bank, and UPI apps during a transaction. They also play a key role in validating, processing, and reversing payments when required.

Also Read: Govt considers charging UPI payments above Rs 3,000: Report

Faster transactions

The latest upgrade is likely to make transactions much easier and quicker for users of UPI payment apps such as Google Pay, PhonePe, Paytm, Bhim UPI, Amazon Pay and Cred UPI, as it reduces transaction delays by as much as 66 per cent.

This will provide users with a smoother experience even during high-traffic hours, festival sales, or disbursements involving large amounts. This will significantly expedite payment confirmation, reduce wait times, and minimize errors in transactions and failed transaction reversals.

“With 15-second UPI processing, payments will now be faster and more reliable—a win-win for India’s 350 million users,” said Sarika Shetty, CEO and co-founder of RentenPe, said a report in Business Today.

“It will ease load during peak hours, improve gateway efficiency, and further drive UPI’s adoption across rural and global markets,” he added.

Also Read: New UPI transaction limits: All you need to know

Instructions to banks

The NCPI, which reportedly recorded over 18.6 billion UPI transactions in May, has directed banks and apps to upgrade their systems in line with the new TATs. It has further stated that the upgrades should not lead to a spike in technical glitches and urged the stakeholders to ensure both speed and reliability.

Financial companies felt faster transactions will accelerate UPI’s reach beyond peer transfers into high-value commerce, regular bills, and cross-border payments. Moreover, it will encourage a real-time, inclusive digital banking future.