What workflows should reconciliation software add so credit card bill payments UPI payments auto-split when they exceed the per-transaction cap?

If your POS system accepts UPI payments for term deposit openings, you’ll need to tweak both your settlement and ledger rules to handle the new high-value UPI limits properly. Since September 15, 2025, the NPCI lets verified categories like term deposits go up to ₹10 lakh per day — but that also means your system has to treat these transactions differently from normal retail payments.
First, update your settlement rules. Tag every UPI transaction meant for term deposits with the correct NPCI purpose code INVS_TD. This ensures they aren’t mixed with normal sales payments. Route them through a separate investment or deposit settlement batch rather than the standard POS batch, because banks may process these through different merchant codes and timings. Large-value UPI payments (above ₹2 lakh) often settle on a T+1 basis, so your settlement logic must support delayed posting. Also, only allow routing through verified PSP handles that actually support high-value UPI; not every PSP does. Finally, your reconciliation flow should match each incoming UPI receipt against a term deposit creation request so that the finance team never sees unlinked receipts in their end-of-day reports.
Next, update your ledger mapping. In normal retail flows, a UPI receipt credits sales revenue but for term deposits, that’s incorrect. Instead, when a customer opens a term deposit via UPI, the entry should debit the bank (UPI receipts) and credit a Term Deposit Liability account. Once the term deposit is actually created or confirmed in the core banking system, that liability should move to the Term Deposit Principal account. If a refund happens before creation, you’d reverse it by debiting the liability and crediting Bank UPI Refunds Payable.
You’ll also want to add some extra controls in your posting logic. Always store the NPCI purpose code (INVS_TD) in your transaction records so audits can identify investment-linked UPI flows. Maintain a link between the UPI Reference ID and the Term Deposit ID to make reconciliation painless. Set up a daily aggregate view to make sure the total UPI receipts tagged as INVS_TD don’t exceed ₹10 lakh per merchant per day. And log PSP handle details and payer VPAs to meet compliance requirements.
Before settlement posting, the POS should also verify a few things: that the PSP handle supports high-value UPI, the transaction status is successful, the settlement window hasn’t expired, and the total daily inflows for that category are still within limit. If any of these checks fail, the transaction should be flagged for manual review instead of getting auto-posted.

Make your invoicing tool smart enough to notice when someone’s trying to pay more than the UPI limit, quietly break it into smaller transactions, and handle them one by one in the background. Then stitch it all together so your books still show a single payment. It’s mostly about saving the customer from Payment Failed – Limit Exceeded errors and your finance team from reconciliation nightmares.

Start by connecting your payment layer (whatever orchestrates UPI requests, Pine Labs, Razorpay, Cashfree, etc.) to an NPCI or PSP metadata API. These APIs can tell you whether a payer–merchant combo is eligible for the updated cap (like ₹5L or ₹10L for specific categories such as credit card bills). The moment a customer enters their UPI ID or selects a bank handle, run a quick check:

If category = Credit Card Bill Payment and payer_verified = true → mark as eligible for higher UPI limits.

Once that check passes, show a short informational banner or tooltip right in the payment screen — something like:

Good news! Your UPI handle supports the new higher limit for credit card bill payments (up to ₹10L/day).

You can make it dynamic, too, if a user’s UPI handle doesn’t qualify, show:

This UPI ID supports payments up to ₹1L. For higher payments, please try NetBanking or another UPI ID linked to your verified account.

If you’re processing split transactions (because a user tried to pay more than the per-transaction cap), display a short confirmation like:

Your payment will be auto-split into two UPI requests to stay within NPCI’s per-transaction limit.

On the backend, store the eligibility status and any NPCI or PSP response codes in your transaction logs. That helps support teams explain payment outcomes later and it’s gold for debugging edge cases during rollout.

First, start by mapping your merchant categories (MCCs) or business use cases to the NPCI’s standardized UPI purpose codes. For credit card bill payments, the typical purpose code is something like CCP (Credit Card Payment) or whatever your PSP/bank mandates under NPCI’s Credit Card Repayments category. Your PSP should provide an updated list after the September 2025 changes.

Then, when your marketplace platform generates a UPI collect or intent request (like through Razorpay, Paytm, or Pine Labs APIs), inject the purposeCode field directly into the payload — for example:

{

txnId: TXN12345,

amount: 50000,

payerVPA: user@upi,

payeeVPA: creditcard@bank,

purposeCode: CCP,

note: Credit Card Bill Payment

}

This makes the transaction self-identifying during audits, so both your system and the PSP know it’s a credit card bill payment and not a generic transfer.

On the backend, make sure the ledger and reconciliation modules also carry this code. When you export daily reports or settlement files, include the purpose code in a dedicated column (e.g., UPI Purpose Code) so finance and compliance can filter these transactions instantly.

You can even go one step further: set up a rule in your payments orchestration layer — if the payee VPA belongs to a recognized credit card issuer (like @hdfcbank, @icicibank, etc.), automatically tag it with the CCP purpose code. That reduces manual tagging errors and ensures every bill payment gets the right classification, even when customers use third-party apps to initiate UPI payments

Add latency-based backoff logic at the payment orchestration layer

You need a mechanism that monitors response latency from PSPs and dynamically adjusts retry intervals.

• Track each PSP’s average response time (avg_response_ms) over the last N requests (say, the past 60 seconds).
• Define a latency threshold per PSP — e.g.,
• normal: < 1500 ms
• warning: 1500–3000 ms
• critical: > 3000 ms
• Once the warning or critical range is hit, pause or slow down retries automatically.

Use exponential backoff with jitter for retries

Instead of retrying at fixed intervals, apply exponential backoff with jitter, a common approach used by resilient payment and API clients:

retry_delay = base * (2 ^ attempt) + random_jitter

Example:

• 1st retry after 5s
• 2nd after 10s
• 3rd after 20s (+/- random 3–5s jitter)

This ensures your app doesn’t trigger retry storms that could get your merchant handle throttled by the PSP or NPCI gateway.

Classify retry eligibility by UPI status

Only retry when you get transient or timeout errors.

This prevents retries for permanent failures that can never succeed.

Show real-time UX feedback

When throttling triggers, inform the user with a contextual, transparent message:

• We’re waiting a few seconds before retrying — the UPI network is temporarily slow.
• If the latency stays high beyond a few retries, escalate to a fallback prompt:
• UPI is taking longer than usual. You can complete your credit card bill using NetBanking or Debit Card.
• This reduces user drop-offs and maintains trust.

Log all throttling events

For audit and support teams, log these fields for every throttled retry:

• PSP name (e.g., Paytm, PhonePe)
• Average latency at time of retry
• Retry attempt number and delay applied
• Final outcome (SUCCESS, FAILED, USER_FALLBACK)

This is helpful if your system needs to justify retry behavior to partner banks or regulators.