The National Payments Corporation of India (NPCI) on November 28, 2025, issued the notification regarding the Auto acceptance of chargebacks based on credit adjustments in the AePS system.
The following has been stated namely: -
• In ARCS, credit adjustments and chargebacks are settled on a FIFO basis, causing issues when a chargeback is already settled, any later credit adjustment for the same transaction gets declined.
• Chargebacks typically take up to five days to resolve, while credit adjustments could credit the customer’s account on the same day or T+1, creating efficiency gaps in dispute resolution.
• To reduce turnaround time, ARCS will auto-accept chargebacks on behalf of acquiring banks when a chargeback has already been raised and settled, ensuring faster customer resolution.
• Even with auto-acceptance, any subsequent credit adjustment for a transaction that already has a settled chargeback will continue to be declined.
• Auto-acceptance of chargebacks in ARCS will be effective from December 23, 2025, and member banks must inform relevant officials and refer to Annexure 1A & 1B for detailed rules and processes.
[Notification No. NPCI/AEPS/OC No. 94/2025-2026]
