NPCI Revamps UPI Settlement System, Increases P2M Payment Limit to ₹10 Lakh
The National Payments Corporation of India (NPCI) has announced a major change in the Unified Payments Interface (UPI) settlement process, effective from November 3. Under the new framework, settlement cycles will now separate authorized transactions from dispute-related transactions, aiming to streamline processing and reduce reconciliation errors.
Until now, all 10 daily settlement cycles handled both authorized and disputed transactions together. With the revised system, cycles 1 to 10 will exclusively process authorized transactions, while two new cycles—11 and 12—will be dedicated solely to dispute transactions. These dispute cycles will be identified in the NTSL file with labels DC1 and DC2. However, there will be no changes to settlement timing, reconciliation, or GST reporting.
In another key update, NPCI has raised the person-to-merchant (P2M) payment limit to ₹10 lakh per day for select categories, effective from September 15. This move is intended to encourage high-value digital transactions and simplify large payments. The limit for person-to-person (P2P) payments remains unchanged at ₹1 lakh per day.
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