The National Payments Corporation of India (NPCI), on February 10, 2025, issued a notification regarding the Auto acceptance & rejection of chargeback basis the TCC & Returns.
To enhance dispute resolution efficiency in UPI-deemed approved transactions, changes are being implemented in the URCS system. Currently, remitting banks initiate chargebacks from T+0 onwards, often before beneficiary banks can reconcile and process returns (RET)/TCC. This has led to cases where chargebacks proceed on a deemed acceptance basis, resulting in RBI penalties for beneficiary banks.
To address this, auto acceptance/rejection of chargebacks will now be based on the TCC/RET raised by the beneficiary bank in the next settlement cycle after the chargeback initiation. This revised process applies only to bulk uploads & UDIR and not to the front-end option.
The updated functionality will be implemented in URCS from February 15, 2025. Member banks are advised to take note and disseminate this information accordingly.
[Notification No. NPCI/ UPI/OC No. 213/2024 – 2025]
