New Delhi, September 24: National Payments Corporation of India (NPCI) has announced new rules for UPI settlements, which will come into effect from November 3, 2025. The changes will be made to handle the growing volume of UPI transactions efficiently. By improving the settlement process, NPCI is trying to ensure that daily transactions are completed on time without delays or errors. PhonePe, Paytm, and GPay users can expect to experience faster and smoother payments as a result of these updated settlement cycles.

The new guidelines are said to separate authorised transactions from disputed ones for making the settlement process clearer and more organised. The change is expected to reduce delays and improve reliability for PhonePe, Paytm, and GPay users. As per the NPCI circular, the segregation of UPI settlement cycles for authorised and disputed transactions will come into effect from November 3, 2025. UPI P2M Payment Limits Increased: NPCI Raises Transaction Limits for Person-to-Merchant Transactions up to INR 10 Lakh for Specified Categories.

UPI Settlements Cycle (Revised)

UPI Settlements Cycle (Photo Credits: NPCI)

New UPI Settlements Rules

Currently, UPI processes ten settlement cycles per day using RTGS. Each cycle includes authorised settlements and dispute settlements. Due to the growing volume of transactions, it has been decided to separate authorised and dispute settlements. This change is aimed at making the daily settlement process smoother, more efficient, and completed on time.

The updated settlement process between cycles 1 to 10 will include only authorised transactions. The dispute settlements will be excluded from these cycles. NPCI noted, "There shall be no change in the existing cut-over timings or RTGS posting timelines." Dispute related settlements will now be processed twice daily in dedicated settlement cycles. These cycles will include only dispute transactions. Paytm Postpaid: Fintech Firm Launches Postpaid on UPI With ‘Spend Now, Pay Next Month’ Feature for Credit-Based Payments; Check Features and Other Details.

The first daily cycle will run from midnight to 4 PM, while the second cycle will take place from 4 PM to midnight. The separation is likely to streamline the processing of disputes and ensure timely completion of these transactions. NPCI further said, “Other settlement rules shall remain unchanged, including settlement timings, reconciliation reports, GST reports, TATs for AUTH settlement and disputes, customer compensation, NPCI compliance penalties, NDC limits and other guidelines under OSG V_2.1.”

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