New UPI Settlement Rules to Start from 3 November

Currently, UPI runs 10 settlement cycles per day through RTGS. Each cycle includes both authorised transactions (like payments) and dispute-related transactions. With rising transaction volumes, this system often delays the settlement process.

What Will Change from 3 November?

The National Payments Corporation of India (NPCI) has decided to separate authorised and dispute settlements into different cycles. This aims to make the settlement process quicker and more efficient.

Revised Settlement Cycles

• Authorised Transactions (Payments): 10 cycles daily between 9 am and 9 pm
• Dispute Transactions: 2 cycles daily
  • DC1: Midnight to 4 pm
  • DC2: 4 pm to midnight

Authorised transactions will only be settled in cycles 1 to 10, while disputes will be settled separately in DC1 and DC2. The existing RTGS posting timelines will remain unchanged.

Key Points to Note

1. Disputes will no longer be processed in authorised settlement cycles.
2. Two exclusive dispute settlement cycles will run daily.
3. Other settlement rules, including reconciliation and GST reports, stay unchanged.

Extension for Paytm UPI Mandates

In another update, NPCI has extended the deadline to stop all autopay mandates linked to old @paytm UPI IDs until 31 October 2025.

Read More: UPI Raises Transaction Limits: Now Pay Up to ₹10 Lakh for Big Purchases!

Conclusion

By separating authorised and dispute settlements, NPCI is making UPI faster and more reliable. With these changes effective from 3 November 2025, users and businesses can expect smoother payment processing and quicker dispute resolution.

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