New UPI rule speeds up your refunds starting tomorrow
What's the story
From July 15, the National Payments Corporation of India(NPCI) will implement new chargeback rules for Unified Payments Interface (UPI) transactions. The changes are aimed at simplifying and speeding up the process of handling payment disputes. Earlier, if a user's chargeback request was rejected due to exceeding claim limits, banks had to seek NPCI's approval through the UPI Reference Complaints System (URCS). However, this additional step will no longer be required from July 15.
Direct reprocessing
Banks can now mark genuine chargebacks for reprocessing
With the new rules, banks will have the power to directly mark genuine, previously declined chargebacks as fit for reprocessing. A chargeback is a mechanism that allows UPI users to formally dispute a case where money has been deducted but the service or product was not delivered. Banks and payment apps track these disputes through URCS, which serves as a common platform for such complaints.
Enhanced efficiency
NPCI's update aims to reduce delays
The NPCI's update, issued via a circular dated June 20, 2025, is expected to reduce delays and give banks more autonomy in resolving valid complaints. This means that users could get refunds faster if a genuine chargeback is wrongly rejected. The revision is part of NPCI's broader effort to strengthen India's digital payments ecosystem as UPI usage continues to grow amid concerns over fraud or failed transactions.