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Corporate Laws Central Ministry of Finance Reserve Bank of India Act, 1934

NPCI issues Guidelines on Handling of Deemed Approval Status in UPI for Person to Merchant transaction

26-May-2025 | NPCI/UPI/OC/39A/2025-26

National Payments Corporation of India (NPCI) has issued a circular regarding the extension of guidelines for handling "deemed approval" (or "deemed acceptance") status in UPI transactions where the acquiring Payment Service Provider (PSP) and the Merchant Bank are the same. This will take effect from June 30, 2025. Key highlights are as follows: 1. In the case of a Person-to-Merchant (P2M) transaction where the Merchant Bank (Beneficiary) and the Acquiring PSP (Payee PSP) are the same, UPI will consider the transaction status of "Deemed Acceptance" as "SUCCESS" in online transactions and will pass this response to the PSPs. 2. There will be no changes to the back-office systems for third-party deemed approved transactions. The existing RC-RB rules will continue to apply to all processes, including settlement, raw files, adjustment reports, GST reports, NPCI compliance penalties, RBI penalties, and chargeback rules. Changes will only be made in the online switch as mentioned above, and the current process of updating transaction statuses to TCC/RET will remain unchanged. For detailed information, please refer to the attached document.

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