The National Payments Corporation of India (NPCI) has announced that the disposal of authorized and disputed transactions to be held in UPI (Unified Payments Interface) will now be conducted in different cycles.

Under the current system, UPI operates 10 settlement cycles through RTGS every day, in which both authorized and dispute related transactions are dealt with simultaneously. In view of the rapid increase in the number of transactions, it has been decided that authorized and disputed transactions to complete the daily settlement process should be dealt with in different cycles.

The revised settlement cycles are as follows

Cycles for authorized transactions (i to x):
Cycle number time type
I at 9 pm – midnight authorized disposal
II midnight – authorized disposal at 5 am
III Authorized disposal at 5 – 7 am
IV authorized disposal at 7 – 9 am
V authorized disposal at 9 – 11 am
Vi 11 – Authorized disposal at 1 pm
VII Authorized disposal at 1 – 3 pm
Viii authorized disposal at 3 – 5 pm
IX authorized disposal at 5 – 7 pm
X Authorized at 7 – 9 pm

Cycles for disputed transactions (DC1 and DC2):

Cycle number time type
DC1 midnight – disputed settlement at 4 pm
DC2 at 4 pm – midnight disputed settlement

Major features of the revised process:

According to the above, now only authorized transactions from cycle1 to 10 will be included. No disputed transactions will be processed in these cycles. Also, no changes have been made in RTGS posting and cut-over time.

Transactions related to dispute will be dealt twice a day – as DC1 and DC2 (Cycle 11 and 12). Both these cycles will be reserved only for disputed transactions. In addition, the names of NTSL files will now be added to DC1 and DC2, where DC means ‘Dispute Cycle’.

All other rules such as settlement time, reconciliation report and GST report will remain undone.