New UPI Rules from 3rd November! Check Here

The National Payments Corporation of India (NPCI) has announced changes to the UPI settlement process to improve efficiency and ensure timely processing of transactions.

Currently, UPI processes ten settlement cycles per day via RTGS, combining both AUTH (authorization) and dispute transactions in each cycle. Due to the growing volume of transactions, NPCI has decided to separate these two types of settlements.

Key Changes:

• AUTH Settlements: Settlement Cycles 1 to 10 will now include only AUTH transactions. There will be no disputes processed in these cycles. Existing cut-off timings and RTGS posting timelines will remain unchanged.
• Dispute Settlements: Dispute transactions will be processed twice daily in Settlement Cycles 11 and 12. These cycles will only include dispute transactions. The file naming will now include identifiers “DC1” and “DC2,” where “D” stands for Dispute and “C” stands for Cycle.
• Other Rules: All other settlement rules, including reconciliation reports, GST reports, turnaround times (TATs), customer compensation, compliance penalties, and NDC limits, will remain unchanged.

These changes will take effect from 3rd November 2025. Member banks have been advised to update their systems and ensure compliance with the revised settlement structure.