New UPI Transaction Rules From November 3: What Users And Banks Need To Know

From November 3, 2025, UPI (Unified Payments Interface) settlements will follow a new framework aimed at making transactions faster and more predictable for both users and banks. The National Payments Corporation of India (NPCI) has announced that authorised payments and dispute settlements will now be processed separately.

With billions of transactions processed every month, combining regular payments with refunds and reversals in the same settlement cycle had slowed down the system. NPCI’s new rules are designed to remove these delays and improve operational efficiency.

What’s New in UPI Settlement Cycles ?

• 10 daily cycles for authorised transactions: From 9 am to 9 pm in two-hour windows, all genuine transactions will be processed separately from disputes.
• 2 cycles for disputes: Refunds and reversals will now be handled exclusively in two cycles:
  • Cycle 1: Midnight to 4 pm
  • Cycle 2: 4 pm to midnight

Important Points to Note

• No change in cut-off timings: RTGS posting schedules remain unaffected.
• Disputes ring-fenced: Refunds and reversals will be handled only in the designated cycles.
• Other rules unchanged: Reconciliation, GST, and reporting procedures stay the same.

Impact on Users and Banks

• For consumers: Payments at stores, online platforms, and peer-to-peer transfers will continue as usual. Transactions will reflect faster as dispute settlements are separated. Refunds for failed or double-charged transactions will now follow the two dedicated dispute cycles, offering more predictability.
• For banks: Reduced congestion in reconciliation processes and smoother operations.

UPI recently crossed 20 billion transactions in August, totalling Rs 24.85 trillion, marking a new milestone. By separating settlement types, NPCI aims to improve efficiency, reduce delays, and enhance the overall UPI experience.