UPI OC 222 and OC222A FAQ's
1) What is the purpose of this change?
To separate AUTH and Dispute settlements for better clarity,
efficiency, and timely completion of daily settlement processes.
2) What exactly changes in the settlement cycles?
3) From when is this effective?
Effective from 15th December 2025.
4) Do existing cut-over timings or RTGS posting timelines
change for cycles 1–10?
No. There is no change to existing timings for
AUTH cycles.
5) How will the dispute cycles be identified in files?
Dispute cycles will use NTSL file names containing “DC1”
and “DC2”
“D”
denotes Dispute
“C”
denotes Cycle
6) What goes into DC1 and DC2?
Only Dispute settlements (e.g., WC/FC chargebacks,
adjustments). No AUTH settlements.
7) Will reporting and compliance change?
No. The circular says all other settlement rules
remain unchanged, including:
Settlement
timings (as per Annexure)
Reconciliation
reports
GST
reports
TATs
for both AUTH & dispute
Customer
compensation, NPCI compliance, NDC limits
Issued
guidelines version is applicable
8) Does this impact banks’ internal reconciliation?
Yes—positively. With AUTH and Disputes separated,
reconciliation becomes cleaner and easier to track per cycle/type.
9) Do member banks need to take any action?
Yes. Banks must:
Update
cycle config and file ingestion to accommodate DC1/DC2
Communicate
changes to internal ops teams
The circular explicitly asks members to make necessary changes and ensure
compliance with the revised structure.
10) Will there be any changes to dispute reason codes or
flows?
No changes are mentioned. Only settlement segregation
is being done.
11) Are AUTH settlements allowed in cycles 11–12?
No. Cycles 11–12 are exclusive to Disputes.
12) Are Disputes allowed in cycles 1–10?
No. Cycles 1–10 are AUTH-only.
13) What happens to transactions that were previously
mixed in a cycle?
From the effective date, they’ll be segregated into
appropriate cycles (AUTH → 1–10, Disputes → 11–12).
14) What file changes should we expect?
15) Does this affect customer TAT for
refunds/chargebacks?
No. TATs remain unchanged as per current
guidelines.
17) Any impact on liquidity/RTGS handling during the day?
AUTH cycles continue as-is (1–10). Disputes now
settle in two dedicated windows (11 & 12)—plan availability of
funds accordingly for those cycles.
18) Will the circular share exact cycle-wise timings?
It says timings are provided in Annexure I of the OC-222.
Use those for precise scheduler changes.
20) What are WC and FC in disputes (for ops clarity)?
21) How do we validate correct routing after go‑live?