The National Payments Corporation of India (NPCI) has announced a major change to the way UPI settlements will be processed. Starting November 3, 2025, authorised and disputed transactions will follow separate settlement cycles, aimed at improving efficiency and reducing delays.
At present, UPI handles 10 settlement cycles per day through RTGS, and both authorised and disputed transactions are processed together. With rising transaction volumes, this often created settlement delays.
What Will Change
According to NPCI’s official circular OC No. 222 (FY 2025-26), the revised system will work as follows:
-
Cycles 1–10: Only authorised transactions will be processed. No disputes will be included in these cycles.
-
Dispute Transactions: To be processed separately in two new cycles, labelled DC1 and DC2.
-
Other Rules: RTGS posting timelines, reconciliation, and GST reports remain unchanged.
This separation is expected to make daily settlements faster and smoother for banks and users.
Also Read: PM Modi Highlights UPI Expansion at BRICS as India’s Digital Payments Go Global
Extension of Paytm UPI Mandate Deadline
In a related update, NPCI has extended the deadline for discontinuing all autopay mandates linked to old @Paytm UPI IDs. Users now have time until October 31, 2025 to migrate their mandates.
Other UPI Rule Changes in 2025
The latest settlement update follows several new rules NPCI introduced this year:
-
From August 1, 2025, limits were placed on balance enquiry requests (50 per day) and certain APIs to reduce system overload.
-
From October 1, 2025, NPCI will shut down peer-to-peer collect request (pull) transactions to reduce fraud risks.
With UPI processing billions of transactions monthly, these changes are designed to keep the system reliable as usage grows. By separating disputes from authorised payments, NPCI hopes to ensure quicker settlements and fewer delays.
Also Read: UPI Transaction Limit Hiked to ₹10 Lakh per Day from Sept 15!
