UPI Rules Change From November 3: Separate Settlement For Disputes, Paytm Autopay Deadline Extended

The National Payments Corporation of India (NPCI) has announced new rules for UPI settlements, effective from November 3, 2025. The changes are designed to ensure smoother and more efficient processing of the rapidly increasing number of UPI transactions.

Current Settlement Process

At present, UPI transactions are cleared through 10 daily RTGS settlement cycles. These cycles include both authorised transactions (successful payments) and disputed transactions (failed or challenged payments).

What Will Change from November 3

Authorised transactions only: From cycles 1 to 10, only authorised (successful) transactions will be processed. Disputes will no longer be part of these settlement cycles.

Separate dispute handling: Disputed transactions will be moved to two new settlement cycles - cycle 11 and cycle 12 - where they will be processed exclusively twice a day.

New identifiers introduced: NPCI will use "DC1" and "DC2" (where DC stands for Dispute Cycle) as identifiers in the file naming system for these dispute settlements.

Timings to Remain Unchanged

Despite these modifications, there will be no change in cut-over timings, RTGS posting schedules, reconciliation reports, or GST reports. The shift will only affect how authorised and disputed transactions are separated.

Paytm UPI Autopay Update

Alongside these changes, NPCI has also extended the deadline to close old Paytm UPI ID Autopay mandates linked to @paytm. The earlier deadline has now been pushed to October 31, 2025.