NPCI directs banks, payment services to set up online dispute resolution system for UPI ecosystem; warns of action on non-compliance
To resolve complaints regarding digital transactions done using the Unified Payments Interface (UPI) and to provide convenience to customers, the National Payment Corporation of India (NPCI) has directed banks, payment service providers, third-party applications to set up an Online Dispute Resolution (ODR) system.
NPCI New Rules: To resolve complaints regarding digital transactions done using the Unified Payments Interface (UPI) and to provide convenience to customers, the National Payment Corporation of India (NPCI) has directed banks, payment service providers, third-party applications to set up an Online Dispute Resolution (ODR) system.
All participants in the UPI ecosystem are required to implement an ODR system for disputes and grievances related to failed transactions by September 30, 2022, the National Payments Corporation of India (NPCI) said in a circular issued on April 11.
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If the participants fail to comply, they will not be allowed to add new users.
In view of the increasing penetration of UPI, there are instructions to prepare the International Merchant Payment Network in the UPI interface by September 30, 2022.
What is NPCI?
In 2008, the National Payments Corporation of India (NPCI) was incorporated as an umbrella corporation for operating retail payments and settlement systems in India. NPCI has built a robust payment and settlement infrastructure in the country. NPCI brought various payment reforms, including RuPay cards, Immediate Payment Service (IMPS), Unified Payments Interface (UPI), Bharat Interface for Money (BHIM), BHIM Aadhaar, and National Electronic Toll Collection (NETC Fastag).
UPI123Pay
The Reserve Bank of India (RBI) launched a unique feature for payments with a facility where those with feature phones could also use the UPI platform, pointing to further adoption of digital transactions in the country's regions, where the majority of the citizens still don't own smartphones.
This feature is called UPI123Pay, which will offer payments through feature phone without internet.
Apart from debit cards, the deadline for boarding on UPI using Aadhaar OTP was set by NPCI till December 15, 2021, but it has now been extended till March 15 due to banks' unpreparedness.
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