UPI Rule Change: NPCI has changed this UPI rule for customers, now transactions made on wrong accounts will be returned to the customer
We are now using UPI multiple times a day. From grocery shopping at local markets to buying gadgets online, we use UPI for easy online payments. Sometimes, due to our negligence or impatient payment habit, we send money to the wrong UPI numbers.
Now there is no need to panic for customers. NPCI has modified some rules in the UPI chargeback process to return wrong UPI transactions to the original customer. So, UPI chargeback for wrong transactions will be easy now.
NPCI new UPI chargeback facility
National Payments Corporation of India (NPCI) has introduced a new system to simplify UPI chargebacks for transactions made on the wrong accounts. NPCI wants to reduce delays and improve the UPI dispute resolution process.
Also Read- Good News! Govt is offering BSNL minimum recharge plan for incoming and Outgoing calls only at this price, check details
As per NPCI circular No. 184B/2025-2026 dated June 20, 2025, banks can now initiate chargebacks under the newly introduced RGNB (Remitting Bank Raising Good Faith Negative Chargeback) category.
This new change applies to banks when chargeback requests under URCS (UPI Reconciliation and Chargeback System) are declined with reason codes CD1 (IFSC + Account Number) or CD2 (Payer VPA + Payee VPA). If the remitting bank finds the customer dispute genuine after due diligence, it can now raise an RGNB request directly without NPCI involvement.
In which cases will RGNB be applicable?
RGNB chargeback must be initiated only when URCS declines the regular UPI chargeback. Once accepted, the remitting bank is allowed to debit the amount to the beneficiary bank and refund the customer. The beneficiary bank must respond to RGNB requests within 3 calendar days for P2P (U3) transactions and 15 calendar days for P2M (U2) transactions, or the adjustment will be accepted automatically by the system.
Key points for banks:
- Banks must validate and check accuracy before raising RGNB adjustments requests.
- Duplicate entries will be automatically rejected by URCS.
- NPCI specified status codes must be used as per the AUTH transaction settlement.
- Compensation to customers in P2M cases must follow a “Y/N” flag based on bank choice.
- The changes will be effective from July 15, 2025.
NPCI has asked Member banks to review Annexures 1 and 2 for detailed guidelines and update internal systems accordingly.
