Npci rule on upi: If you are an UPI user, then you must have used it about 2-4 times a day. From buying vegetables to sending money, UPI has become an important part of our lifestyle. However, it causes trouble when you pay someone and accidentally transfer to someone else. By the way, there is no need to panic now. The National Payment Corporation of India (NPCI) has made a new rule to soon resolve the problems faced by UPI payment. Now banks have been empowered to take action on their own without permission before NPCI on real UPI payment disputes such as fraud, failed transactions or complaints of traders.
According to a circular (number 184b/2025-2026) of NPCI, banks can directly start chargeback for real customers disputes with ‘good intentions’. Even if some of his appeals have been rejected before, now they will not need to take approval before NPCI. In other words, under the new rules, banks will now be able to raise certain types of rejected chargebacks without permission before NPCI.
What was the issue?
Till now, if the bank’s dispute request (chargeback) for a particular account or UPI ID was repeatedly rejected, then the NPCI system automatically stopped further efforts as ‘negative chargeback rate’ (causes CD1/CD2). The banks who felt that the customer’s case was right, had to request the NPCI themselves to ‘whitening’ the dispute, which took a long time and the customers had a delay in getting the solution.
What new change has NPCI now made?
The new NPCI system, called RGNB (Remitting Bank Razing Good Faheve Chargesback), allows banks to remove these automatic blocks if their internal investigation confirms that the customer’s dispute is justified. NPCI said in the circular, ‘NPCI has simplified the process by allowing the rejected chargeback to be raised by the issuer/Remitting Bank, “NPCI has simplified the rejected chargeback. This good intention dispute has been named RGNB. This circular will be applicable from 15 July 2025.
The facility should not be misused to avoid fine: NPCI
However, NPCI also said that the RGNB adjustment should be raised by the issuer/Remitting Bank only when the URCs reject the general chargeback with CD1 and CD2 causes codes. RGNB option is available only through front end. NPCI further said, “This option should not be used to avoid any compensation and punishment, any Har-fir will be considered a violation of NPCI guidelines.”
What cases will RGNB apply?
RGNB applies to common UPI complaints where customers want refund, such as unauthorized transactions (for example, fraudulent money sent to a user account), failed UPI payments where the money was deducted but the recipients did not get, merchant disputes (for example, paid for the goods/services that were not received), and duplicate/wrong payment (for example).
Let us tell you that in the year 2025, more than 11.4 billion transactions were done by UPI every month. In such a situation, even a small part of the disputes affects millions of people. This change will directly affect consumers who are facing unauthorized or wrong transactions.