A failed Unified Payments Interface (UPI) transaction can cause concern when money is deducted from a bank account but the recipient or merchant does not receive the payment.
Although such transactions are generally reversed automatically, the Reserve Bank of India (RBI) has prescribed specific timelines for refunds. If the amount is not reversed within the applicable deadline for reasons not attributable to the customer, the customer may be entitled to compensation of Rs 100 per day for the delay.
The refund timeline depends on the type of transaction. For a person-to-person (P2P) transfer, where the sender’s account is debited but the beneficiary’s account is not credited, the amount must be reversed within T+1 day. For a person-to-merchant (P2M) transaction, where the customer’s account is debited but the merchant does not receive confirmation of the payment, the deadline is T+5 days.
Here, ‘T’ refers to the date of the transaction. Compensation may apply if the prescribed deadline is missed, subject to the RBI’s applicable rules.
How to Get a Refund for a Failed UPI Transaction
Customers can follow these steps if their UPI payment fails but the money is deducted from their bank account.
Step 1: Check the transaction status
Open the UPI app used to make the payment, such as Google Pay, PhonePe, Paytm or BHIM. Visit the transaction history and check whether the payment is marked as successful, pending or failed.
If the status is unclear, avoid making another payment immediately, as this could lead to a duplicate transaction.
Step 2: Keep the transaction details ready
Save the UPI transaction ID or reference number, along with the date, time and amount. Take screenshots of the transaction status and the corresponding debit entry in your bank account.
These details can help when filing a complaint with the payment app or bank.
Step 3: Raise a complaint through the UPI app
Open the failed transaction and look for the help, support or dispute option. Select the relevant issue, such as money debited but the beneficiary not credited, and submit your complaint.
Keep the complaint reference number for future follow-ups.
Step 4: Contact your bank
If the issue remains unresolved, contact the bank from which the money was deducted. Provide the transaction ID and complaint reference number, and request an update on the refund.
Check your bank statement regularly to confirm whether the amount has been credited back.
Step 5: Seek compensation for a delayed refund
If the bank fails to reverse the amount within the applicable RBI deadline, customers may be eligible for compensation of Rs 100 for each day of delay, subject to the prescribed conditions.
Under the applicable RBI framework, compensation is payable automatically in eligible cases. If the compensation is not credited, customers can raise the issue with the bank’s grievance redressal team.
Step 6: Escalate the complaint to the RBI
If the bank does not resolve the issue satisfactorily, customers can approach the RBI’s Complaint Management System at https://cms.rbi.org.in, subject to the applicable eligibility criteria and escalation requirements.
Keep the transaction details, bank statements and copies of previous complaints ready while submitting the complaint.
What Should Customers Remember?
Customers should check the transaction status before making another payment, preserve all transaction records and raise a complaint promptly if the refund is delayed. Knowing the applicable RBI deadlines can help customers follow up with their bank and seek compensation when eligible.