Mumbai, July 18: The National Payments Corporation of India (NPCI) has rolled out revised chargeback rules for Unified Payments Interface (UPI) transactions, which came into effect on July 15. The new guidelines are designed to accelerate refunds and simplify dispute resolution. This move is expected to benefit millions of users relying on UPI for daily payments.

Until now, if a user's chargeback request was rejected, say, in cases of failed payments or fraud, banks had to seek NPCI’s permission through the UPI Reference Complaints System (URCS) to reprocess it. This extra layer often led to significant delays in resolving genuine complaints. GST on UPI Payments? Here’s All You Need To Know About the Proposed Digital Payment Tax.

What Has Changed After UPI New Rules?

Under the new framework, banks no longer need pre-approval from NPCI to act on valid, previously rejected chargebacks. They can now re-investigate and directly refund the user in cases deemed genuine, under a provision termed RGNB (Remitting bank raising good faith negative chargeback).

Immediate Refunds for Failed Transactions

The NPCI has also promised near-instant refunds in the event of transaction failures, where money is deducted but not credited to the intended recipient. Users can now expect immediate credit back to their account, enhancing trust in the digital payment ecosystem. Furthermore, in cases where money is mistakenly sent to the wrong UPI ID, the sender can now raise a request with the recipient’s bank for recovery, an option previously limited in scope. UPI Transactions Surge: INR 24 Lakh Crore Worth Transactions Carried Out in India in April 2025, Daily Numbers Rose to 596 Million, Says NPCI.

Faster Processing Times for All UPI Transactions

With the June 16 update, NPCI reduced the average UPI transaction processing time from 30 seconds to just 10–15 seconds. Banks and payment apps were directed to upgrade their systems to meet this benchmark, as part of NPCI’s broader goal to improve UPI responsiveness.

Additionally, checking the status of a failed or pending transaction, which previously took over 30 seconds, can now be done in just 10 seconds, making it easier for users to track their money in real-time.

(The above story first appeared on LatestLY on Jul 18, 2025 12:19 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).