Mumbai: There is good news for millions of people who use UPI to make payments. The National Payments Corporation of India (NPCI) has introduced new rules that will help users if their UPI payment fails or goes to the wrong UPI ID.
Instant refund for failed transactions
Under the new rule, if your account gets debited but the payment fails, you will get the refund instantly. This rule will come into effect from July 15, 2025.
This means you no longer need to wait for your money to come back in case of a failed transaction.
Money sent to wrong UPI ID? You can now get it back
If you accidentally send money to a wrong UPI ID, you can now ask your bank to get the money back. As per the new guideline, banks can now approve rejected chargeback cases without waiting for NPCI’s approval.
These include cases of fraud, failed transactions, and merchant complaints.
What was the problem earlier?
Earlier, if a chargeback request was rejected many times, NPCI’s system would automatically block further attempts, showing reason codes like CD1/CD2.
To fix this, banks had to manually request NPCI to allow the case again, which used to take time and delay the solution.
What changes now?
NPCI has now launched a new system called RGNB (Remitting Bank Raising Good Faith Negative Chargeback). This will allow banks to remove such blocks if their internal checks confirm that the customer is right.
NPCI warns against misuse
NPCI has also clearly said that banks should not misuse this new option just to avoid penalties or compensation. RGNB should be used only in valid cases of rejected chargebacks for specific reasons.
Why this rule is important
In May 2025, UPI processed over 11.4 billion transactions, and this number is growing fast. So, this new rule will help many users who face unauthorized or wrong transactions.
