On Jun. 20, 2025, IND NPC issued addendum to OC-184; previously, under unified reconciliation and chargeback system (URCS), if a chargeback is declined with reason codes CD1 or CD2, the remitting bank can still act if the dispute is deemed genuine.
However, they had to request NPC to whitelist such disputes before raising chargeback.
From Jul. 15, 2025, banks can directly raise such chargebacks using a new remitting bank raising good faith negative chargeback (RGNB) option provided in URCS.
RGNB can only be used when chargeback is declined by URCS for reason codes CD1 or CD2, only via front-end system; must not be used to avoid compensations/penalties.
On Mar. 12, IND NPC issued addendum re chargeback exemptions.
IND NPC issued addendum re modification in UPI chargeback rules and procedures.
Refers to UPI operating circular vide NPCI/UPI/OC No. 184 dated Dec. 5, 2023.
IND NPC will exempt capping of 10 chargebacks (IFSC + account no.), 5 chargebacks (payer VPA to payee VPA) for chargebacks raised on fraudulent transactions.
Effectiveness
Exemption changes will be made in URCS with effect from Mar. 15, 2025.
Jun. 2025 Good Faith Chargeback
On Jun. 20, 2025, IND NPC issued addendum to OC-184; previously, under unified reconciliation and chargeback system (URCS), if a chargeback is declined with reason codes CD1 or CD2, the remitting bank can still act if the dispute is deemed genuine.
However, they had to request NPC to whitelist such disputes before raising chargeback.
From Jul. 15, 2025, banks can directly raise such chargebacks using a new remitting bank raising good faith negative chargeback (RGNB) option provided in URCS.
RGNB can only be used when chargeback is declined by URCS for reason codes CD1 or CD2, only via front-end system; must not be used to avoid compensations/penalties.
