Latest news with #URCS
News18
2 days ago
- Business
- News18
UPI Chargeback Rules Changed: What It Means For Payment Platform Users
Last Updated: NPCI's new UPI chargeback rules, effective July 15, 2025, aim to enhance user experience and trust. The National Payments Corporation of India's (NPCI) newly introduced UPI chargeback rules, effective from July 15, 2025, are expected to significantly improve user experience and trust in the country's fast-growing digital payment ecosystem. With nearly 600 million UPI transactions occurring daily, the need for a streamlined and time-bound dispute resolution framework has become critical. A key change is the removal of the whitelisting requirement. Previously, if a user's chargeback request was declined—often because it exceeded the claim cap—banks had to approach NPCI for special approval via the UPI Reference Complaints System (URCS). Now, banks can directly mark genuine, earlier-declined chargebacks as eligible for reprocessing, cutting delays and manual dependencies. 'It's a necessary advancement in India's payment ecosystem," said Kishan Sundar, CTO of Maveric Systems. He noted the changes will drive upgrades in backend systems, including automated reconciliation and real-time dispute dashboards. Kunal Varma, CEO of Olyv, added, 'The process will now be less confusing and more trustworthy for users," as strict turnaround timelines give users clarity and recourse. Rohan Lakhaiyar of Grant Thornton Bharat highlighted that the chargeback changes address technical errors like double debits and fraud, which are increasing with rising UPI volumes. He emphasized that the strict TATs for issuing and acquiring banks will ensure disputes are handled efficiently. A chargeback allows UPI users to raise formal disputes when a transaction fails but money is debited. The URCS platform continues to be the core mechanism for managing these disputes, now with fewer hurdles. It aims at simplifying the chargeback process for those raised beyond the capping that were introduced in 2023. It will help foster confidence in the UPI payment system and allow users to raise legitimate chargebacks efficiently. Strict TAT mandates for acquiring and issuing banks for processing of chargeback request will ensure legitimate chargeback requests are resolved in a timebound manner and shall enhance trust in the system, Lakhaiyar added. view comments First Published: Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
India Today
3 days ago
- Business
- India Today
New UPI rules from July 15: What happens if payments fail now?
From July 15, new rules for UPI chargebacks have come into force, making it easier for users to get their money back if a payment goes wrong. The National Payments Corporation of India (NPCI) has brought in these changes to make handling failed payments and fraud complaints simpler and HAS CHANGED FOR USERS?Earlier, if someone raised a chargeback, say, when money was deducted, but they did not get what they paid for, and it got declined, the bank had to go through an extra needed special permission from NPCI to reprocess that claim through the UPI Reference Complaints System (URCS). Now, that extra step is gone. Banks can directly reprocess genuine claims that were earlier turned REFUNDS FOR GENUINE CLAIMSThis means if your valid refund request was rejected by mistake, you won't have to wait for long. Your bank can now fix it faster and give you back your money without extra NPCI announced this update in a circular on June 20, 2025. It stated, 'NPCI has simplified the process by allowing issuing/remitting bank to raise chargeback which are rejected due to negative chargeback rule, the good faith dispute has been named as RGNB (Remitting bank raising good faith negative chargeback).'WHY THESE CHANGES MATTERThe idea is to cut down on the time it takes to solve complaints and give banks more freedom to handle real disputes on their more people use UPI for daily payments, the number of complaints about failed or fraudulent payments has also gone up. These new rules are meant to keep the system smooth and NEWS FOR INDIANS TRAVELLING TO UAEIn another positive move for UPI users, Indians travelling to the UAE will now be able to use UPI at more shops, hotels, and outlets. NPCI International Payments Ltd (NIPL), NPCI's arm for global operations, is expanding UPI's reach abroad. This will help Indian tourists and the large Indian community in the UAE pay easily without worrying about carrying cash or using multiple these changes show how NPCI wants to make digital payments safer and more convenient for everyone. So, next time you face a failed UPI payment, you can expect faster help and fewer hurdles to get your money back.- EndsTrending Reel
Mint
23-06-2025
- Business
- Mint
THESE UPI chargeback rules will come into force from July 15. Check details here
National Payment Corporation of India (NPCI) has announced a modification in UPI chargeback rules and procedures per a circular dated June 20. 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
