UPI Payment Failed? Check RBI Rules on Refund Deadlines and INR 100 Daily Compensation
Failed UPI payment but money deducted? Check RBI refund deadlines for P2P and merchant transactions, INR 100 daily compensation rules for delayed reversals and how to complain to your bank or the RBI Ombudsman.
New Delhi, October 25: If your Unified Payments Interface (UPI) payment fails but money is deducted from your bank account, you may be entitled to a refund within a prescribed deadline. Under Reserve Bank of India (RBI) rules, banks may also have to pay INR 100 per day as compensation if they fail to reverse eligible failed transactions within the stipulated timeline.
UPI has become one of India's most widely used digital payment methods. However, technical issues can sometimes result in money being debited without reaching the intended recipient or merchant. The RBI has established separate turnaround times for resolving such failed transactions.
UPI Failed Transaction Refund Rules: Check Deadlines
The refund timeline depends on the type of transaction and the nature of the failure.
For person-to-person (P2P) transfers, where money is debited but the beneficiary's account is not credited, the amount must be reversed by T+1 day.
For person-to-merchant (P2M) transactions, where the customer's account is debited but the merchant does not receive confirmation of payment, the prescribed reversal timeline is T+5 days. How To Spot and Stop Forgotten UPI AutoPay Mandates: A Step-by-Step Guide.
Here, 'T' refers to the transaction date. Customers should check their transaction status and allow the applicable turnaround time before escalating the issue.
INR 100 Daily Compensation for Delayed UPI Refunds
Under the RBI's failed transaction framework, customers are entitled to INR 100 per day in compensation if the reversal is delayed beyond the prescribed deadline in applicable cases.
The compensation is intended to protect customers from delays in recovering money deducted during unsuccessful transactions. It is generally required to be credited automatically, without the customer having to file a separate claim for the compensation.
What Should You Do If a UPI Payment Fails?
Customers who experience a failed UPI transaction should first check the payment status in their UPI application, such as Google Pay, PhonePe or Paytm.
They should save the transaction ID, payment date, time and screenshots as evidence. If the amount is not reversed within the applicable deadline, they can raise a complaint through the application's help section or contact their bank.
Customers should retain the complaint reference number for future follow-ups.
How to File an RBI Ombudsman Complaint
If the bank does not resolve the complaint within 30 days, or the customer is dissatisfied with its response, they may approach the RBI Ombudsman, subject to the applicable eligibility requirements.
Complaints can be submitted through the RBI's Complaint Management System at cms.rbi.org.in.
Customers should keep all transaction details and complaint records handy to support their case.
(The above story first appeared on LatestLY on Oct 25, 2026 01:39 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).
