In case of peer to merchant (P2M) transaction where merchant bank and acquiring PSP is same, UPI will consider transaction status ‘deemed acceptance’ as success in online and pass the response to the payment service providers. There will be no change in the back-office system for 3 party deemed approved transactions.
The revisions in rules are supposed to improve the customer experience and reduce customer complaints, reads the circular. NPCI has urged the banks and payment service providers to ensure that they make the necessary changes.
The existing RC-RB rules will continue for all process such as settlement, raw files, adjustment reports, GST reports, NPCI compliance penalty, RBI penalty, chargeback rules, among others, reads the circular.
Changes will be done only in the online switch as mentioned above and the current process of updating the transaction status as TCC/RET will continue.
If the merchant bank is not able to credit, the following rules will apply
A. The beneficiary bank will start a credit adjustment/refund/RET against the transaction back to customer only after conducting the necessary checks. As success response is given to PSP and in turn to the merchant, the merchant would have provided goods and services to the customer. Unreconciled/ improper marking of RET/ credit adjustment/ refund without confirming with the merchant will lead to out of fund scenario.
B. In case if the credit adjustment/RET is not initiated, merchant bank will retain the funds with them and credit to the merchant as per the existing regulatory and legal framework.
The TAT for dispute management and adjustments will be as per the extant process.
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