If you use BHIM UPI, there’s important news for you.
Starting November 3, some changes will come into effect regarding UPI (Unified Payments Interface).
These changes will benefit both banks and UPI users.
With the new system, transactions will be completed faster and without hassles.
Why Are the Rules Changing?
Currently, UPI works with 10 settlement cycles every day.
A settlement cycle is the time taken to complete payment settlement.
At present, both valid payments (approved by the user) and disputed transactions (like refunds or money reversals) are processed together in these cycles.
Since billions of UPI transactions happen every month, handling genuine and disputed payments simultaneously was causing delays.
To solve this, the National Payments Corporation of India (NPCI), which manages BHIM UPI, has decided to separate these two types of transactions.
What’s New in the Settlement Cycle?
From now on, refunds and reimbursements (disputed transactions) will only be processed in two specific settlement cycles.
Cut-off timing will not change – RTGS timing remains the same.
Disputes will now be handled separately, making settlements faster.
Other rules such as reconciliation reports, GST reports, and other settlement methods remain unchanged.
How Will This Affect You?
For everyday UPI users, nothing changes in how you make payments.
Whether you are paying at a shop, online, or sending money to friends, the process stays the same.
The difference is in speed and clarity:
Your regular payments will reflect faster in banks’ systems.
If you raise a complaint (like failed payment or double debit), your refund will be processed in one of the two dispute cycles.
This gives more certainty about when your money will be returned.
UPI Growth Numbers
UPI usage is at record levels.
In August 2024, UPI crossed the 20 billion transaction mark in a single month for the first time.
The total value of transactions was ₹24.85 trillion.
