UPI 2.0: Pay Now via Loan, FD, and Share Accounts — New Rules, Features & Rollout Date Explained

Business

With the launch of UPI 2.0, users can now make payments not only from savings accounts but also through linked loan, fixed deposit (FD), and demat (share) accounts. This upgrade aims to expand UPI’s functionality across financial services. The new features are set to roll out in phases starting insert official date once confirmed, enabling greater financial flexibility for users.

If you think that UPI is only linked to savings account or wallet, then you may be shocked very soon. From August 2025, such a change is going to happen in the UPI system that will change the definition of your financial transactions.

Now you will be able to make UPI payments not only from savings account but also from fixed deposits, gold-linked accounts, share-based loans, business overdrafts and other credit lines.

UPI New Features 2025

What is the change and when will it be implemented? (UPI New Features 2025)

On July 10, 2025, NPCI (National Payments Corporation of India) has issued a circular directing all banks and UPI apps to make this new feature live by August 31.

Till now this facility was limited to payments to shopkeepers only (P2M), but now:

P2P (person to person)

P2PM (payments to small merchants)

Cash withdrawal from ATM