UPI ID- Big update for UPI users. Every day there are about 600 million UPI transactions in India. From buying vegetables to sending money, everything is done instantly with UPI these days. The National Payments Corporation of India (NPCI) keeps making necessary updates from time to time to keep this digital payment system fast at all times. In this regard, NPCI has made some important changes in the UPI chargeback rules. These new rules have come into effect from July 15, 2025. Let us tell you what are the new changes in the UPI payment system.

What has changed for UPI users?

The hassle of ‘whitelisting’ is over: Earlier, your charge back request used to get rejected many times. This happened because there was a limit. When this happened, banks had to get special approval from NPCI, which was called ‘whitelisting’, which took a lot of time. Now banks can directly approve those correct charge backs which were rejected earlier. This will reduce delays and work will be done quickly.

Faster refunds: With the removal of the ‘whitelisting’ requirement and strict time-limits (TATs) for banks, refunds for legitimate chargebacks will now be faster. Experts like Kishan Sundar, CTO of Maverick Systems, and Kunal Verma, CEO of Freo, believe that these changes could reduce the time taken to get a refund from days to hours.

Trust will increase: Rohan Lakhiyar of Grant Thornton India said that these changes in charge back eliminate technical glitches such as double debit (the same payment being deducted twice) and fraud, which were increasing with the increase in UPI transactions. The strict timelines set for banks will ensure that disputes are resolved efficiently, making the process less confusing and more reliable for users.

Rohit Reji, co-founder and CEO of Neokred, said that NPCI’s decision that banks can now directly handle UPI chargebacks is a small but huge change. He said that this change will reduce the working capital burden for small merchants, as they will have to wait less for refunds.

While on one hand it gives banks more freedom, they will have to strengthen the early detection system of fraud. Rohith Reji says that tools like ‘ProfileX’ in the BFSI (banking, financial services and insurance) sector are already working in this direction. However, the advantage of this is that the payment system will work more efficiently.