Context:
The National Payments Corporation of India (NPCI) has issued two new circulars aimed at enhancing the performance and reliability of the Unified Payments Interface (UPI). These updates focus on reducing API response times and curbing the misuse or overuse of API calls, with implementation mandated by June 16, 2025.
Faster Response Times for Key UPI APIs
NPCI has directed banks to improve response times for four critical APIs:
- Check Transaction Status:
- Old: 30 seconds
- New: 10 seconds
- Transaction Reversal (Debit/Credit):
- Old: 30 seconds
- New: 10 seconds
- Request and Response Pay:
- Old: 30 seconds
- New: 15 seconds
- Validate Address:
- Old: 15 seconds
- New: 10 seconds
These changes are expected to:
- Reduce retry delays for failed transactions
- Improve customer experience, especially in low-connectivity zones
- Minimize system strain caused by excessive transaction verification attempts
Controlling Misuse of ‘Check Transaction Status’ API
NPCI’s second circular addresses the overuse of API calls which often leads to system congestion:
- Banks can initiate a maximum of three ‘check status’ calls within the first two hours of a transaction.
- The first check must be initiated after 90 seconds of transaction authentication (subject to revised timer window of 45–60 seconds in updated norms).
- If an error from a predefined list is received, banks must treat the transaction as failed and avoid further status checks.
Why This Matters
- Previously, banks could bombard systems with repeat queries, worsening network slowdowns.
- These controls will reduce backend load, particularly during high-volume traffic or outages.
Industry Concerns and Next Steps
- Fintech players have welcomed the move but seek clarity on:
- Applicability of reduced response times for high-risk transactions
- Potential need for code-level updates in transaction categorization libraries
- NPCI and banks are collaborating to ensure seamless implementation before the June 16 deadline.
