UPI New Rules: From November 3, NPCI has implemented new settlement cycles for UPI transactions, due to which authorized and disputed transactions will be processed separately and the system will become faster and secure.
From shopping at a store to paying household bills, everything is done through UPI. Starting November 3rd, some new rules for UPI are coming into effect. These rules have been established by the National Payments Corporation of India (NPCI). They will make our transaction process faster and more secure. If you also use UPI apps, check these rules.
Currently, UPI operates 10 settlement cycles daily through RTGS. Each cycle used to process both authorized transactions and disputed transactions. However, the number of transactions has increased so much that processing them all at once causes delays. Therefore, NPCI has decided to split authorized and disputed transactions into separate cycles. This will ensure timely completion of the daily settlement process.
How will the new settlement cycle be?
According to Mint’s report, the first ten cycles will be for authorized transactions only. This means that no disputed cases will be included in these cycles. The timings will be as follows: the first cycle will be from 9 pm to midnight. The second from midnight to 5 am. The third from 5 am to 7 pm. The fourth from 7 pm to 9 pm. The fifth from 9 am to 11 am. The sixth from 11 am to 1 pm. The seventh from 1 pm to 3 pm. The eighth from 3 pm to 5 pm. The ninth from 5 pm to 7 pm. And the tenth from 7 pm to 9 pm. There is no change in the old cut-over timings or RTGS posting.
Now, two separate cycles have been created for disputed transactions. The first dispute cycle, DC1, will run from midnight to 4 p.m., and the second, DC2, will run from 4 p.m. to midnight. Only disputed transactions will be processed in these cycles. The DC1 and DC2 identifiers will be incorporated into the NTSL file naming protocol. Other settlement rules will remain unchanged, such as timing, reconciliation reports, and GST reports.
What is the benefit of this change?
According to a Mint report, Siddharth Mehta, co-founder of Kiwi, a fintech company, says that separating regular UPI transactions from disputes is a major step forward. This will make the digital payment system more reliable and scalable. Consumer confidence will increase as refunds are faster and more reliable. With clarity for banks and fintech companies, they will be able to launch new services like credit on UPI, BNPL, and EMI without disputes or delays. This is how UPI will meet India’s growing digital payment needs safely and easily.
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