These new UPI rules to come into force from 3 November

The National Payments Corporate of India (NPCI) has announced to segregate UPI (Unified Payments Interface) settlement cycles for authorised and dispute transactions.

At present, UPI processes ten settlement cycles per day through RTGS wherein each cycle includes both authorised and dispute settlements. Considering the significant increase in volume of transactions and it has been decided to segregate authorised and dispute settlements to facilitate timely completion of the daily settlement process.

Revised settlement cycles

The revised settlement process and framework include following details:

1. As the above table shows, settlement cycles between 1 to 10 will now only comprise authorised transactions. Consequently, no disputes will be processed in these cycles. There will be no change in the existing cut-over timings or RTGS posting timelines.

2. Dispute related settlements will be processed twice daily in settlement cycles 11 and 12 as shown in the table above. These cycles will include only dispute transactions. The NTSL file naming convention will incorporate identifiers DC1 and DC2 (where DC denotes dispute cycle)

3. Other settlement rules, however, stay unchanged including settlement timings, reconciliation reports, GST reports.

Siddharth Mehta, Co-founder of Kiwi - fintech offering credit on UPI - says, “Separating regular UPI transactions from disputes is a landmark step toward a more reliable and scalable digital payments ecosystem. It boosts consumer confidence with faster, predictable refunds and gives banks and fintechs the clarity to launch new UPI services, credit, BNPL, and EMIs without fear of disputes or delays. This is how UPI will keep evolving to meet India’s growing digital payment needs securely and seamlessly.”

In another news, NPCI has extended the deadline for stopping all autopay mandates linked to the erstwhile @paytm UPI ID handles by two months till 31 Oct 2025, four people close to the development told Mint.

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