The new guidelines for UPI transactions starting November 3 require PhonePe and GPay, along with Paytm users to understand what changes will impact their payment operations.
The settlement process of Unified Payments Interface (UPI) transactions will experience a fundamental transformation starting on November 3 2025. The National Payments Corporation of India (NPCI) has introduced new rules which will modify how banks together with PhonePe Google Pay and Paytm handle payment processing particularly during disputes.
Separation of Authorised and Disputed Transactions
The current UPI settlement mechanism merges successful transactions with disputed transactions through ten daily settlement cycles. Banks experience difficulties in reconciliation due to this practice which also results in extended dispute resolution times.
The National Payments Corporation of India (NPCI) has established a new system which requires the separation between successful transactions and disputed transactions.
- Only Transactions which are both authorized and successful will appear in Cycles 1–10.
- Disputed transactions will be processed as separate settlements during Cycles 11 and 12.
The process guarantees that authentic transactions move forward with better efficiency and disputed transactions receive individual treatment.
Why This Matters for Users
The routine UPI app functions for sending and receiving money will remain unchanged for regular users. The payment system through PhonePe and GPay and Paytm will maintain uninterrupted functionality. The new system aims to simplify the dispute handling process for users. Customers who encounter problems with failed debits or double payments or delayed credits will receive quicker and more transparent settlements through their banks.
What Stays the Same
The settlement cycle timings along with cut-over rules and RTGS postings and GST reporting rules will continue to be the same after the structural modifications. The National Payments Corporation of India (NPCI) has announced that banks will obtain distinct dispute cycle identification numbers DC1 and DC2 for easier tracking of disputed transactions.
Extension for Paytm Autopay Mandates
The National Payments Corporation of India (NPCI) has provided an extension period until October 31, 2025 for users and merchants to transfer their autopay mandates which are linked to old “@paytm” UPI handles. The autopay requests with outdated IDs will stop functioning after this date thus users must update their details prior to the deadline.
Final Thoughts
India’s digital payment system will advance through these upcoming modifications which represent an important development. NPCI aims to improve settlement clarity for banks by simplifying transaction and dispute management processes which leads to better efficiency and user trust. UPI users will experience smoother payments together with faster dispute processing and improved reliability when using PhonePe Google Pay and Paytm applications.
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