National Payments Corporation of India (NPCI) has issued fresh instructions with regards to UPI transactions relating to auto acceptance and rejection of chargebacks basis the Transaction Credit Confirmation (TCC) and returns.
The digital payments body has rolled out auto acceptance and rejection of chargebacks basis the TCC/RET raised by the beneficiary bank in next settlement cycle after the chargeback is already raised.
However, this process is applicable only for bulk upload option and UDIR not in front end option.
What are chargebacks?
They are often initiated by remitting banks before beneficiary banks can act on UPI deemed approved transactions. This is because the current process enables remitting banks to raise chargeback from T+0 onwards in URCS (Unified Real time Clearing and Settlement).
Where does the problem arise?
Since the process allows banks to raise chargebacks the same day, the beneficiary banks do not get sufficient time to reconcile, and process returns proactively before a dispute turns into ‘chargeback’.
Therefore, several instances came to fore wherein beneficiary banks have raised “return” and didn’t check the status of returns that they have been rejected because chargeback is already raised, and the chargeback has been closed on deemed acceptance basis along with RBI penalty.
How will it be resolved?
To address these challenges, NPCI has now rolled out the process of implementing auto acceptance/rejection of chargeback basis the Transaction Credit Confirmation (TCC) and returns raised by the beneficiary bank in next settlement cycle after the chargeback is already raised.
This is set to be implemented in URCS with effect from Feb 15, 2025.
The NPCI circular states that member banks are advised to take a note of the instructions and disseminate the information to the officials concerned.
The latest NPCI data suggests that UPI achieved a new milestone of 16.99 billion transactions in a month amounting to ₹23.48 lakh crore in January 2025.
Latest News:-
- Savings accounts: This bank has increased the interest rates on savings accounts, getting high returns
- Beer Price Hike: Beer became 15% more expensive, new prices are applicable from today
- School Closed: Big relief! Schools will remain closed again for so many days, holidays declared
- PM Modi will flag off Vande Bharat train from Katra to Kashmir
- Post Office FD: if you deposit ₹ 10,00,000 then you will get more than ₹ 20,00,000 interest
