In May 2025, NPCI issued new UPI guidelines to enhance efficiency and…

2025

In May 2025, NPCI issued new UPI guidelines to enhance efficiency and reliability, effective from August 1, 2025. Which of the following statements is/are correct?
1. Guidelines mandate stronger real-time monitoring and failure reporting for technical declines by UPI apps and banks.
2. Stricter timelines set for failed transaction reversals to ensure faster customer refunds.
3. Unlimited daily UPI limits allowed without monitoring or bank responsibility for failures.

  1. A.

    Only 1

  2. B.

    Both 1 and 2

  3. C.

    Both 2 and 3

  4. D.

    Only 2

  5. E.

    All 1, 2 and 3

Show answer & explanation

Correct answer: B

Concept

To judge a 'which statements are correct' item, test each statement against the actual direction of the reform, not its surface wording. NPCI's May-2025 UPI operational guidelines (effective 1 August 2025) were a reliability-and-efficiency package that TIGHTENS the system — stronger monitoring, faster critical-API responses, and firm daily usage caps — introduced in response to the March–May 2025 UPI outages.

Applying it to each statement

  1. Statement 1 is TRUE. The framework strengthens real-time monitoring and requires apps and banks to track and report technical declines (TDs) and API health, so weak or failing systems can be identified and penalised.

  2. Statement 2 is TRUE. New turn-around-time standards cut the response time of critical APIs — including transaction reversals — from about 30 seconds to about 10 seconds, so refunds on failed payments reach customers faster.

  3. Statement 3 is FALSE. Far from being unlimited, the guidelines impose hard daily caps (balance enquiry 50/day, linked-account view 25/day, pending-status checks only 3 times with a 90-second gap) and hold PSPs and banks accountable — the exact opposite of 'unlimited without monitoring'.

Conclusion

Statements 1 and 2 hold and statement 3 is false, so the correct choice is 'Both 1 and 2'.

Cross-check: the whole reform was triggered by repeated outages, so every change tightens control. Any statement claiming looser, unmonitored, or unlimited usage must therefore be false — which is why statement 3 fails and any option that includes it is wrong.

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