On February 15th, UPI payments will have updated procedures for handling transaction disputes, known as chargebacks, where payment is canceled and the money returned to the sender. These changes affect how problems with UPI transactions are resolved.
The National Payments Corporation of India (NPCI) is tweaking UPI to make it simpler. Now, when something goes wrong with a payment and you ask for your money back (called a chargeback), the decision to approve or reject it will be made automatically by a computer, without people having to get involved. This should make the whole process faster and easier.
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If you ever have a problem with a UPI payment and need to get your money back, these new rules should make the whole process less of a hassle and quicker for you. It’s designed to be a smoother experience for everyone using UPI.
Automatic Decisions: Imagine you have a problem with a UPI payment. Instead of a person reviewing your case, a computer system will now automatically decide if you get your money back. This should make the refund process faster.
For Big Payments (Mostly): These new rules are mainly for large-scale transactions and specific tracking systems, not your everyday UPI payments to friends or small shops. Your regular payments won’t be affected as much.
Bank’s Call: If you need a refund, the bank that initially received your money through UPI will have the final say, but it will be an automated process rather than a manual one. They will automatically decide whether to approve it or not based on the automated system.
What is a UPI chargeback?
A UPI chargeback is when a UPI transaction is reversed because of a dispute, possible fraud, or technical problems. The bank of the person who paid starts the chargeback, and if it works, the money goes back to them.
What were the problems before?
Before, banks could start chargebacks on the same day as the transaction. This didn’t give the bank receiving the money enough time to check things. This led to mistakes and penalties.
How does this solve the problem?
The new rules make sure chargebacks are automatically accepted or rejected based on information from the bank receiving the money.
UPI is becoming more popular
UPI is being used more and more. In January 2025, there were almost 17 billion transactions worth over 23 lakh crore rupees.
Also Read: UPI-Driven WhatsApp Pay Launches for All Users Across India
