New Delhi — The National Payments Corporation of India (NPCI) has announced new rules for the Unified Payments Interface (UPI) that will take effect on November 3, 2025. According to NPCI, the changes aim to make the UPI system faster, more reliable, and better equipped for high-value digital transactions.
Authorized and Dispute Transactions Will Be Separated
Currently, UPI processes transactions through ten settlement cycles in a single day, including both authorized and dispute-related transactions. Under the new rules, authorized transactions and dispute transactions will be processed in separate settlement cycles.
Settlement Cycles 1–10: Only authorized transactions will be processed. Dispute transactions will not be included in these cycles.
Settlement Cycles 11–12: Only dispute-related transactions will be processed. NPCI has directed the use of DC1 and DC2 naming conventions in NTSL files, where “DC” stands for Dispute Cycle.
NPCI clarified that cut-off timings, RTGS posting timelines, and reconciliation reports will remain unchanged.
P2M Transaction Limits Increased
The NPCI has also increased limits for person-to-merchant (P2M) transactions. In select categories, daily payments of up to ₹10 lakh will now be allowed. The rule has been effective since September 15. Meanwhile, person-to-person (P2P) transaction limits remain capped at ₹1 lakh per day.
Experts say the changes are expected to streamline high-value payments, enhance the efficiency of the system, and ensure timely settlement of transactions.
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Implications for Users
Businesses and high-value transaction users can expect faster and more secure settlement of payments.
Dispute transactions will now follow separate settlement cycles, ensuring clearer records for personal and business accounts.
The increased P2M limit will make large digital payments easier for merchants and e-commerce platforms.
NPCI officials said the update is a significant step toward strengthening the UPI ecosystem and advancing India’s Digital India initiative.
