UPI transactions to see changes from February 15: What are they?

The National Payments Corporation of India (NPCI) has introduced changes regarding UPI transactions. The proposed changes, which will take place from February 15, concern auto acceptance and rejection of chargebacks. The 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.

The beneficiary bank's move to raise a TCC or returns will determine whether a chargeback is accepted or rejected, eliminating the need for manual intervention. Chargebacks occur when a UPI deemed-approved transaction is reversed by the issuer, acquiring bank or NPCI before the bank which is receiving the amount can fully process it. They often create issues in managing disputes effectively since they often occur before a beneficiary bank gets a chance to verify and process a return.