On Jul. 10, 2025, IND NPC introduced auto acceptance and rejection of chargeback for banks act on immediate payment service (IMPS), similar to the mechanism above.
Currently, where chargeback is already raised, the TCC/RET records are rejected by the system, and if the banks do not handle such rejections, the chargeback will be deemed accepted with IND RBI penalty.
To address such problems, IND NPC is implementing auto acceptance and rejection of chargeback based on the TCC/RET raised by the beneficiary bank in the next settlement cycle after the chargeback is already raised.
Revised process applies only to bulk upload option and UDIR, not to front-end option.
Rules set for auto acceptance/rejection of the chargeback are specified in annexure 1.
The new function will be effective from Aug. 27, 2025.
Document dated Jul. 10, 2025, received from IND NPC Jul. 16, summarized on Jul. 18.
On Jun. 21, IND NPC introduced an online dispute resolution facility.
IND NPC introduced online dispute resolution (ODR) facility to expedite the resolution of customer complaints related to unified payments interface (UPI) transactions.
Follows IND NPC Nov. 2022 enabled customer complaint via website, see #162698.
Document dated Jun. 21, 2024, received from IND NPC Jun. 24, summarized Jun. 26.
ODR Facility
Member banks must ensure availability of ODR, maintain a high success rate for complaints resolved through ODR, and encourage customers to use this facility.
Chargeback timeline for customers to raise disputes will be uniformly set to 45 days for all categories of transactions, applies regardless of when the transaction occurred.
NPC will maintain transaction data according to the revised 45-day turnaround time.
Banks are advised that transaction searches beyond 45 days will not be available unless a dispute is present, in which case details can be provided up to 190 days.
UPI dispute and incident reporting/ODR complaints shall also be managed within the 45-day timeline; no changes in file formats or settlement processes for disputes.
Effectiveness
Revised chargeback timeline will be effective from Jul. 25, 2024.
Feb. 2025 Auto Acceptance/Rejection Mechanism
On Feb. 10, 2025, IND NPC said current process allows remitting banks to initiate chargebacks on UPI deemed approved transactions before beneficiary banks can act.
Beneficiary banks do not have sufficient time to reconcile and process returns (RET) or transaction correction code (TCC) before a dispute escalates into a chargeback.
Some beneficiary banks raised RET without verifying its status, leading to rejection as chargebacks were already raised, resulting in deemed acceptance and RBI penalties.
Auto acceptance/rejection mechanism will be implemented based on TCC/RET raised by beneficiary bank; this process will take place in the next settlement cycle.
Revised process applies only to bulk upload option and UDIR, not to front-end option.
The changes will be effective from Feb. 15, 2025.
Jul. 2025 Revised Chargeback Process
On Jul. 10, 2025, IND NPC introduced auto acceptance and rejection of chargeback for banks act on immediate payment service (IMPS), similar to the mechanism above.
Currently, where chargeback is already raised, the TCC/RET records are rejected by the system, and if the banks do not handle such rejections, the chargeback will be deemed accepted with IND RBI penalty.
To address such problems, IND NPC is implementing auto acceptance and rejection of chargeback based on the TCC/RET raised by the beneficiary bank in the next settlement cycle after the chargeback is already raised.
Revised process applies only to bulk upload option and UDIR, not to front-end option.
Rules set for auto acceptance/rejection of the chargeback are specified in annexure 1.
The new function will be effective from Aug. 27, 2025.
Document dated Jul. 10, 2025, received from IND NPC Jul. 16, summarized on Jul. 18.
