New Delhi: From November 3, 2025, the National Payments Corporation of India (NPCI) will roll out new rules for UPI settlements. The move comes as digital payments continue to rise across India, and the changes are aimed at making the system more efficient, transparent, and user-friendly.
Current UPI Settlement System
Right now, UPI transactions are cleared through 10 daily RTGS settlement cycles. These cycles include both successful transactions (authorised payments) and disputed ones (failed or challenged). Since both are settled together, it sometimes leads to delays and confusion.
What Will Change From November 3
NPCI is introducing a revised structure to handle transactions more effectively. The three major changes are:
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Only authorised transactions in first 10 cycles: From cycle 1 to 10, only successful payments will be processed. Disputed transactions will be excluded.
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Separate cycles for disputes: Two new cycles—cycle 11 and cycle 12—will be dedicated entirely to dispute settlements. This ensures disputes are handled independently without slowing down regular transactions.
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New identifiers for disputes: NPCI will introduce DC1 and DC2 identifiers (DC = Dispute Cycle) in the file naming system. This will help banks and payment partners easily recognise dispute-related settlements.
No Change in Settlement Timings
It’s important to note that there will be no change in cut-over timings, RTGS posting schedule, reconciliation reports, or GST reports. The main difference lies only in how authorised and disputed settlements are separated for better efficiency.
Update on Paytm UPI Autopay
In addition to these changes, NPCI has extended the deadline for closing old @paytm UPI ID Autopay mandates. Initially, the cut-off was earlier, but now users and merchants have time until October 31, 2025 to complete the transition.
What It Means for UPI Users
With these updates, users can expect faster settlements, fewer delays, and quicker dispute resolution. As UPI continues to be the backbone of India’s digital payment ecosystem, these rule changes are another step towards improving security, reliability, and overall user experience.
