New UPI chargeback rules effective from July 15
Starting July 15, 2025, the National Payments Corporation of India (NPCI) is updating UPI's chargeback rules to help users resolve payment disputes faster—especially when requests are rejected because you've hit certain limits.
The goal is to make fixing genuine payment issues quicker and less frustrating for everyone using UPI.
Banks can now raise 'good faith' disputes
With the new system, banks won't have to wait for NPCI's green light—they can raise a "good faith" dispute straight through the URCS platform if a chargeback gets blocked by set limits (those are called CD1 or CD2).
This should make things smoother, but banks need to use this power wisely or face penalties.
What's the current chargeback cap?
Since December 2023, there's been a cap: you get up to 10 chargebacks per customer and five per payer-payee pair every 30 days.
If you try for an 11th or sixth one, reason codes CD1 and CD2 kick in and stop it.
The new rules are all about making sure real problems still get sorted out—even if those caps have been reached.