New UPI Transaction Rules From November 3: PhonePe, GPay, Paytm Users Must Know

UPI users, take note! The National Payments Corporation of India (NPCI) has announced new settlement rules for UPI transactions, effective from November 3. These changes aim to streamline settlements for authorised and disputed transactions, ensuring smoother and faster processing for banks and users alike.

Currently, UPI processes ten settlement cycles daily via RTGS, handling both authorised and disputed transactions together. Due to the surge in UPI transaction volumes, NPCI has decided to separate authorised and dispute settlements to improve efficiency and timely completion of daily settlements.

Here’s What Changes:

1. Authorised Transactions Only in Cycles 1–10:

From November 3 onwards, the first ten settlement cycles of the day will include only authorised transactions. Dispute settlements will not be processed in these cycles. Existing cut-off timings and RTGS posting schedules will remain unchanged.

2. Dispute Transactions in Cycles 11–12:

Dispute-related settlements will now occur twice daily in cycles 11 and 12. These cycles will exclusively handle dispute transactions. To help with tracking, the NTSL file naming will now use identifiers DC1 and DC2, representing the respective dispute cycles.

3. Other Settlement Rules Remain Unchanged:

Settlement timings, reconciliation reports, and GST reporting rules will continue as before, ensuring no disruption to standard banking operations.

Additionally, NPCI has extended the deadline for stopping all autopay mandates linked to the old @paytm UPI IDs until 31 October 2025, giving users more time to update their mandates.

These changes will help banks manage transaction flows better and improve the overall UPI experience for millions of users across India.