The National Payments Corporations India (NPCI) on April 19, 2023, issued a notification regarding the Implementation of advanced refund API as part of UPI Help (UDIR)
This feature (UPI Help) aims towards helping in resolving customer complaints/ queries swiftly and in a seamless manner.
The following has been stated namely: -
• This has a reference to the RBI Circular RBI/2020-21/21 DPSS.CC.PD No. 116/02.12.004/2020-21 relating to Online Dispute Resolution System for Digital Payments, dated 06 August 2020, NPCI Operating Circular No. 98 regarding UDIR — Enhancing Complaint handling & Resolution process for UPI Transactions dated November 24, 2020, and Operating Circular No. 145/A Final implementation timeline for ODR - Enhancing Complaint handling & Resolution process for all UPI users dated August 19, 2022.
• It states that all the merchant acquiring entities (Entities who acquire the merchants i.e., Bank, aggregators, payment service providers, etc.) shall implement the below functionalities by June 15, 2023 namely: -
1. Pre-approved online refund functionality via 'refund API' (with partial or full refund functionality- partial refund introduced in TSD version UDIR_TSD_UDIR_UPI_TSD V2.1 dated September 01, 2021)
2. Transaction status to the merchant.
a. Provide real-time check transaction status option to merchant by 'check status API' (Payee PSP to merchant).
b. Enabling ‘req-complaint API' to the merchant platform for real-time status of complaints, which can be further provided to their merchants and customers.
• It states that the merchant acquiring entity (PSP acquiring banks and/ or payment aggregator) shall use the existing NPCI back-office (URCS) dispute management system to manage ‘refunds’ if the merchant acquiring entity uses any other channel for acquiring refunds then in the case of any issue, liability for such issue shall be borne by the merchant acquiring entity.
• The Merchant acquiring entity shall provide the following to merchants on a regular /periodic/ real-time basis:
a. Information/ summary of the transaction is performed along with the refund status.
b. Access to the complaint and chargeback management information system.
• The contents of this circular are to be noted for implementation and requisite information is to be disseminated to all concerned officers.
[Circular No. NPCI/UPI/OC165/2023]
