Currently, most payments are made through UPI. To make these digital transactions faster and more secure, NPCI (National Payments Corporation of India) has decided to implement major changes to the UPI system from November 3, 2025.
Until now, UPI transactions included both authorized and disputed transactions. Previously, both types of transactions were processed together. Up until now, UPI had 10 settlement cycles daily through RTGS, in which all types of transactions – authorized and disputed – were processed simultaneously. Due to the increasing number of transactions, these processes were experiencing delays. Therefore, NPCI has now decided to separate the two types of transactions into different cycles.
Now, the 10 cycles will be exclusively for authorized transactions. The timings for these cycles will be as follows: the first cycle from 9 PM to midnight, the second from midnight to 5 AM, the third from 5 AM to 7 AM, the fourth from 7 AM to 9 AM, the fifth from 9 AM to 11 AM, the sixth from 11 AM to 1 PM, the seventh from 1 PM to 3 PM, the eighth from 3 PM to 5 PM, the ninth from 5 PM to 7 PM, and the tenth from 7 PM to 9 PM. There are no changes to the old RTGS cut-off or posting timings.
Meanwhile, there will now be two separate cycles for disputed transactions. The first, “DC1,” will run from midnight to 4 PM, and the second, “DC2,” from 4 PM to midnight. Only disputed transactions will be processed in these two cycles. All other rules, such as timings, reconciliation, and GST reporting, will remain the same. Processing regular transactions separately will ensure faster and more transparent refunds. Banks and the fintech sector will gain greater clarity, and services such as UPI-based credit, BNPL, and EMI will be promoted.
