IND NPC Revision of Settlement Cycles

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.

Regulators IND NPC
Entity Types Bank; Depo; MSB
Reference Lt NPCI/UPI/OC No. 197/2024-2025, 6/24/2024
Functions Compliance; Financial; Operations; Reporting; Settlement
Countries India
Products Banking; Payments
Regions AP
Rule Type Final
Rule Date 6/24/2024
Effective Date 8/1/2024
Rule Id 216861
Linked to N/A
Reg. Last Update 6/24/2024
Report Section International

Last substantive update on 06/27/2024