Newz Desk, Durgapur: From November 3, instant mobile payments through UPI will be settled faster for both users and banks. The National Payments Corporation of India (NPCI) will separates the genuine transactions from dispute settlements, easing delays caused by processing both together across 10 daily cycles.
Under the revised framework, 10 daily cycles (from 9 am to 9 pm) in two-hour windows will process only authorised transactions, while two separate cycles will handle dispute settlements — one from midnight to 4 pm and another from 4 pm to midnight.
What’s important to know
RTGS unaffected: The revised system does not affect the existing Real Time Gross Settlement (RTGS) posting timelines.
Disputes isolated: Reversals and refunds will now be cleared only in two dedicated settlement cycles.
No other changes: Reconciliation reports, GST filings, and other settlement processes continue as before.
What it means for consumers
For most UPI users, payments at online platforms, shops, or peer-to-peer transactions will continue to function as before. Transactions will now reflect faster in banks’ systems because the transactions are no longer processed along with dispute settlements in the same batch.
Greater clarity on refunds
If you raise a complaint, such as a failed debit or a double charge, the refund will be processed within one of the two dedicated dispute cycles. This is expected to bring more predictability to when users see the money credited back to their accounts.
Unified Payments Interface (UPI) in August handled more than 20 billion transactions amounting to ₹24.85 trillion in value, according to NPCI. This was the first time the system crossed the 20 billion monthly transactions mark. By segregating settlements, NPCI aims to reduce bottlenecks, improve operational efficiency, and minimise risks of settlement delays.
For banks, this means reduced congestion in reconciliation. For consumers, it ensures smoother payments and clearer timelines for refunds.
