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Corporate Laws Central Ministry of Finance Payment and Settlement Systems Act, 2007

NPCI issues Implementation of system controls in NRCS for chargebacks raised under reason codes 3004 & 3005

08-Apr-2026 | NPCI/2026-27/NETC/003

NPCI has issued a circular on the implementation of system controls in NRCS for chargebacks raised under reason codes 3004 & 3005. The circular provides that, to prevent invalid chargebacks, NPCI is implementing controls in the NRCS back office to automatically validate and reject chargebacks raised under reason codes 3004 (vehicle in blacklist) and 3005 (vehicle in low balance). Chargebacks falling under scenarios listed in Annexure–1 will be declined with reason code 5226 – “Active Tag, Issuer chargeback claim is not valid”, and all rejected chargebacks will be reflected in the acknowledgement file. All member banks are required to update their respective reconciliation modules and ensure compliance with these guidelines. The functionality will be effective from May 15, 2026, and members are advised to disseminate this information to all officials concerned.

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