UPI Refund: Good news for UPI users! Now you will get instant refund if the transaction fails, new rule will be implemented from this date

There is good news for crores of users who make online payments through UPI. Money will be refunded immediately if the payment fails.

UPI Refund: There is good news for crores of users using UPI. If the transaction fails, the user will get an immediate refund. There is no need to wait for this. Actually, the National Payments Corporation (NPCI) is going to implement a new rule from July 15. After this, if money is deducted from the account but the payment is not made, then the user will get an immediate refund. That is, the money will be returned to his account. Not only this, in case of sending money to the wrong UPI number, the user will be able to ask for money back from his bank. Under the new guidelines, banks will now be able to pick up some rejected chargebacks on their own without the need for prior approval from NPCI.

Settling old claims will be easier

The new UPI chargeback system being introduced by NPCI will also provide relief to such customers whose refund claims were rejected earlier. In the new rules, the bank has been given the freedom to re-examine and settle the old rejected cases.

What’s the problem now?

Currently, if a bank’s dispute request (chargeback) for an account or UPI ID pair is repeatedly rejected, NPCI’s system automatically blocks further attempts, citing “negative chargeback rates” (reason codes CD1/CD2). Banks that consider a customer’s case to be valid have to manually petition NPCI to “whitelist” the dispute – a time-consuming process that delays resolution. Chargeback means that if you made a payment through UPI and it failed or you were cheated, the bank takes the process to get your money back.

Payment through UPI has become very easy

NPCI has changed the payment methods of UPI. Earlier this payment used to happen in 30 seconds. Now it will be done within 10-15 seconds. The new rule has come into effect from June 16, 2025. Last month, NPCI had asked banks and payment apps to upgrade their systems so that payments are done in just 15 seconds. On April 26, 2025, NPCI said that it is trying to reduce the response time of UPI transactions to improve performance.

The post UPI Refund: Good news for UPI users! Now you will get instant refund if the transaction fails, new rule will be implemented from this date first appeared on informalnewz.

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