NPCI issues reminder to UPI participants on implementation timeline of Unified Dispute and Issue Resolution (UDIR) approach as Online Dispute Resolution for all UPI users by 30th September, 2022

The National Payments Corporation of India (“NPCI”) has issued a reminder on “Final implementation timelines for ODR- Enhancing Complaint handling & Resolution process for all UPI users”. All UPI participants including member banks / payment system partners (PSPs) / third-party application providers (TPAPs) are required to implement the online dispute resolution system (including financial legs of the transaction) for all their customers / users latest by 30th September, 2022. Failure to comply/ implement the same will lead to a ban on onboarding new customers with effect from 1st October, 2022.

Background:

The present Notification has reference to RBI Circular No. RB1/2020-21/21 DPSS.CO.PD No.116/02.12.004/2020- 21 dated 6th August, 2020 on Online Dispute Resolution (ODR) System for Digital Payments and NPCI Circular No. NPCl/UPI/OC – 145/2022-23 dated 11th April, 2022 on implementing Unified UDIR by all Banks, PSPs and TPAPs for all the UPI users latest by 30th September, 2022.

Thereafter, it has been observed that many members have gone live on issuer / PSP / Apps, while few members are yet to provide UDIR functionalities including financial legs of the transaction (i.e. credit processing and reversal, wherever applicable) to their customers and on their UPI App. Also, members live / ready need to enable end to end transaction including credit processing.

In light of this NPCI had directed all member banks/ PSPs/ TPAPs participating in UPI to provide this facility (including financial legs of the transaction) to all their customers/users latest by 30th September, 2022.

Please note, for non-compliant member banks/ PSPs / Apps, new customer onboarding will be stopped effective from 1st October, 2022. This is also applicable for multi-bank TPAPs and they will only be permitted to onboard new customers only on enabled PSPs post this date.

NPCI has advised all UPI participants to make this functionality available well before 30th September, 2022. Members are also advised to bring to the notice of their partners at an appropriate level.

Source: National Payments Corporation of India