New UPI Rule: Digital payments have spread their feet in the country. Now most people make digital payments, which makes them very easy. But it has been seen many times that while making digital payment, their payment gets stuck for some reason or does not reach another. Now in such a situation, people get upset where their money has gone or how long will the refund come. The new rule of UPI has come about this.
In fact, the National Payments Corporation of India (NPCI) has announced the implementation of new rules related to UPI transactions from 15 February 2025. With these changes, the chargeback (refund process) will be automated, which will give customers quickly refunds and the process will be easier for banks.
What says new UPI rules
For your information, let us know that till now when a transaction failed, the bank used to start a chargeback process “T+0” (from the day of transaction). The money that has been sent from this did not have enough time to process the refund. Many times the refunds used to be rejected due to this and penalty from RBI was also available.
Now “Transaction Credit Confirmation (TCC)” system will be implemented which will an automated accepted or reject the chargeback. This will not require manual investigation and the process will be intensified. According to NPCI, this new rule will only upload bulk and apply to UDIR (Unified Dispute Resolution Interface). However, this will not affect the front-end (complaints made directly by customers).
Why are there chargebacks?
- Chargesbacks occur when an already approved UPI transaction is reversed. There can be many reasons behind this.
- The customer refused to identify the payment.
- Duplicate payment was made due to any technical disturbance.
- The customer paid for a service or product but did not get the right delivery.
- There were technical problems in transaction processing.
What will be the benefit of new rules?
- Customers will get quick refund due to the chargeback process being automated.
- Banks will get more time for transaction reconciliation.
- Fraud and unnecessary disputes will be reduced.
- RBI’s penalty will help to avoid.
- The entire process will be more transparent and faster.
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