THESE UPI chargeback rules will come into force from July 15. Check details here
The latest announcement has simplified the rules which govern declined chargebacks. Currently, when UPI chargeback requests are declined (because too many such requests were raised) but the due diligence shows that the chargeback was indeed genuine. Then the bank in those cases can raise a request to NPCI for whitelisting the dispute post through URCS.
Now the new rule states that the banks do not need NPCI intervention for whitelisting the disputes.
NPCI has simplified the process as it allows issuing/remitting banks to raise chargeback. This good faith dispute is named as RGNB (remitting bank raising good faith negative chargeback).
RGNB adjustment should be raised by the issuing/remitting bank only when URCS (Unified Real-time Clearing and Settlement). declines the normal chargeback with CD1 and CD2 reason code.
This option is available only through the front end. This option should not be used to avoid any compensation and penalties, and any deviation will be treated as non-compliance to the NPCI guidelines.
The circular states that member banks are advised to take a note and disseminate the information to the officials concerned.
This functionality will be implemented in URCS with effect from July 15, 2025.
This latest circular is a follow up notification to the previous one that was issued on Dec 5, 2023, which stated that a section of the users was trying to exploit the chargeback procedure to gain unduly.
To bring more discipline and efficiency into the process, NPCI in Dec 2024 had rolled out certain changes which put a cap on total chargebacks which stands at 10 per customer in 30 days rolling and 5 chargebacks per payer and payee combination in 30 days rolling. NPCI also reduced the turn-around time to 30 days for raising chargeback on small and offline merchants.
The reason code CD 1 refers to declining the 11th chargeback for IFSC and account combination, and reason code CD2 refers to declining the 6th chargeback for payer-payee combination. As explained in the background above, NPCI – in Dec 2023 – put a cap on the number of chargebacks each month. These caps were 10 per customer and 5 per payer-payee combination. So, when the 11th or 6th chargeback is claimed, it is rejected with reason CD1 or CD2 respectively.
For all personal finance updates, visit here
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
an hour ago
- Time of India
Govt to enable UPI payment in all ration shops within a year
Chennai: Tamil Nadu govt will introduce unified payments interface (UPI) transactions in all 37,328 fair price shops across the state within the next year. As many as 10,661 shops under the public distribution system (PDS) across 37 districts already support cashless payments. Officials from the co-operation, food and consumer protection department said the move is part of modernisation measures, which include ISO quality certifications and renovation of all shops. ELCOT will facilitate the procurement of scanners and POS devices, which will support both card and QR code payments. You Can Also Check: Chennai AQI | Weather in Chennai | Bank Holidays in Chennai | Public Holidays in Chennai The ration shops will also get automated bill generator machines linked to the POS device and the computer in the shop. Each set will cost about 20,000, including the billing machine. Officials said this has already helped streamline payment tracking, monitor purchase timings, and prevent revenue leakage at the staff level. "We received complaints that Amma Canteens were receiving PDS ration in bulk in the city. With QR or digital payments, such pilferage will also reduce," said an official from the department. The state operates one of the country's largest PDS networks, distributing rice, wheat, sugar, tur dal, palm oil, palm jaggery, and millets to 2.25 crore ration cardholders. Of these outlets, 35,181 are run by the cooperative department, 1,527 by the Tamil Nadu civil supplies corporation (TNCSC), 152 by other cooperatives, and 468 by women's self-help groups. Digital payments are one of the criteria for receiving ISO certification. So far, 10,149 fair price shops have obtained ISO 9001 certification for quality, and 2,059 have received ISO 28000 certification for storage safety.
&w=3840&q=100)
Business Standard
2 hours ago
- Business Standard
Digital debt collection makes strides as lenders use tech to cut visits
For a business that's taken huge strides in recent years, mirroring the growth in retail credit, there's hardly anything by way of a sizing study on it premium Raghu Mohan Listen to This Article 'We currently manage collections for over 98 million retail and small-business loan accounts, covering a loan book of about $250 billion,' says Rishabh Goel, cofounder and chief executive officer (CEO) of Credgenics, a software-as-a-service platform for debt collection. With more than 700 million smartphone users and over 450 million UPI users, digital access is everywhere. 'WhatsApp, used by over 550 million of us, is now a default channel for collections and legal followups,' points out Nitin Purswani, cofounder and CEO of Medius Technologies. And that 'over 25 million people paid EMIs digitally in May 2025. Many of these are missed
Economic Times
4 hours ago
- Economic Times
Received approval from board to raise Rs 5,000 cr: Indian Bank MD & CEO
Public sector Indian Bank has received approval from the board to raise Rs 5,000 crore during the financial year, a top official has said. The Chennai-headquartered bank reported a capital adequacy ratio of 17.80 per cent for the April-June 2025 quarter, the bank's Managing Director and CEO Binod Kumar said. "Approval is there. We have to raise Rs 5,000 crore. Not QIP (Qualified Institutional Placement) or by any other instruments. But, I do not think it (fund raise) will be required (immediately). 17.8 per cent (of Capital Adequacy Ratio) is there.., " he told PTI in a brief the April-June 2025 quarter, the Capital Adequacy Ratio of the bank rose to 17.80 per cent from 16.47 per cent recorded in the same quarter of last financial the fund raising plan, the bank is betting big on its UPI related payments proposal, as it is currently working on developing an IND-UPI application, similar to the services provided by PhonePe, GPay or PayTM. Through such an initiative, the bank would be able to save about Rs 150 crore every Kumar said the bank is developing its own UPI app named 'IND-UPI', a UPI-based payment solution similar to the current PhonePe, GPay or PayTM services."Right now, our customers are using other UPI apps and we (Indian Bank) have to pay them a fee. Monthly, it will be around Rs 12 crore. With the IND-UPI payment facility, customers will be able to make payments using our own application and through this we will be able to save Rs 12 crore per month (around Rs 150 crore per annum)", he explained that the application is currently used by the senior officials of the bank as a 'Closed User Group' and it would be rolled out to customers soon after getting the approval from NPCI."By this initiative, we will be able to save a handsome amount. We will be able to pass on the benefits to our own customers like providing incentives whenever they use IND-UPI app to make UPI-transactions," he a query about hiring plans, he replied in the affirmative, stating they have received approval to recruit 3,000 employees during the current financial year across "all levels." "It will be 3,000 people across all levels this year. We are going to do specialised hiring like cyber security, risk specialists, there will be multiple specialised roles," he Bank reported a 24 per cent rise in net profit to Rs 2,973 crore in the April-June 2025 quarter. The bank earned a net profit of Rs 2,403 crore in the corresponding quarter of last financial year."The result is in line because earlier the growth has been a challenge for us. But this quarter we have grown in double digit. Earlier we grew in single digit," he the bank's target for this year under the recoveries segment, he said, "We have given guidance of Rs 5,500 to Rs 6,500 crore for the year. But in this April-June 2025 quarter itself, we have recovered Rs 2,059 crore. It is a good one". The total income of the bank grew to Rs 18,721 crore during the April-June 2025 quarter from Rs 16,945 crore registered in the corresponding quarter of last financial year. PTI
