On Sep. 12, 2025, IND NPC said Unified Payments Interface (UPI) has decided to segregate AUTH and dispute settlements to ensure smoother and timelier processing.
Settlement cycles 1 to 10 will now process only AUTH transactions, with no disputes included; cut-over timings and RTGS posting schedules will remain unchanged.
Dispute settlements will be processed separately in two additional cycles, settlement cycles 11 and 12, dedicated exclusively to disputed transactions.
The NTSL file naming convention for dispute settlements will use identifiers DC1 and DC2 to denote the two dispute cycles; detailed cycle timings are provided in annexure.
Other settlement rules and requirements remain unchanged, including reconciliation, GST reports, turnaround times, customer compensation, compliance penalties, and related guidelines under OSG V_2.1.
The revised framework will take effect from Nov. 3, 2025.
Document dated Sep. 12, 2025, received from IND NPC Sep. 19, summarized Sep. 22.
On Jun. 24, IND NPC issued letter re revision of settlement cycles.
IND NPC issued letter re Revision of settlement cycles and business day cutover timing.
Changes
Increased settlement cycles from 8 to 10 per day, extended business day cutover from 23:00 to 24:00; aims to reduce settlement risks, streamline reconciliation processes.
On Jul. 31, 2024, last settlement cycle will temporarily extend from 21:00 to 24:00.
No changes in cutoff timings for customer compensation, NPCI compliance penalties, or file formats, though additional settlement cycles will be denoted in file names.
Member banks are advised to update their systems accordingly and ensure adequate funds in real-time gross settlement (RTGS) settlement accounts throughout the year.
Effectiveness
The changes will be effective from Aug. 1, 2024.
Sep. 2025 Segregation
On Sep. 12, 2025, IND NPC said Unified Payments Interface (UPI) has decided to segregate AUTH and dispute settlements to ensure smoother and timelier processing.
Settlement cycles 1 to 10 will now process only AUTH transactions, with no disputes included; cut-over timings and RTGS posting schedules will remain unchanged.
Dispute settlements will be processed separately in two additional cycles, settlement cycles 11 and 12, dedicated exclusively to disputed transactions.
The NTSL file naming convention for dispute settlements will use identifiers DC1 and DC2 to denote the two dispute cycles; detailed cycle timings are provided in annexure.
Other settlement rules and requirements remain unchanged, including reconciliation, GST reports, turnaround times, customer compensation, compliance penalties, and related guidelines under OSG V_2.1.
The revised framework will take effect from Nov. 3, 2025.
Document dated Sep. 12, 2025, received from IND NPC Sep. 19, summarized Sep. 22.
