UPI Payment Failed But Money Deducted, Banks May Have To Pay ₹100 Daily Compensation For Delayed Refunds
· Free Press Journal
New Delhi: Unified Payments Interface (UPI) has become one of India's most popular payment methods. However, failed transactions can create problems when money is deducted from a customer's bank account but does not reach the recipient.
According to Reserve Bank of India (RBI) rules, banks may have to pay compensation of Rs 100 per day if failed UPI transactions are not reversed within the prescribed timeline.
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When Will Your Money Be Refunded?
The RBI has specified different refund timelines depending on the type of UPI transaction.
If money is deducted during a person-to-person transfer but the beneficiary does not receive it, the amount must be reversed by T+1 day.
For payments made to merchants, where money is deducted but confirmation is not received at the merchant's end, the refund deadline is T+5 days.
Here, 'T' refers to the transaction date.
Rs 100 Compensation For Delays
If the bank fails to reverse the transaction within the prescribed timeline, customers are entitled to compensation of Rs 100 per day for delays beyond the deadline.
The compensation applies under RBI's failed transaction rules and should be credited automatically without requiring a separate claim.
What Should Customers Do?
Customers facing failed UPI payments should first check the transaction status before attempting another payment.
They can follow these steps:
Check transaction history on Google Pay, PhonePe, Paytm or the relevant UPI application.
Save the transaction ID, date, time and payment screenshots.
Register a complaint through the application's help section.
Contact the bank if the issue remains unresolved.
Keep the complaint reference number for further follow-up.
How To File An RBI Complaint?
If the bank fails to resolve the issue, customers can approach its grievance redressal department.
If the complaint remains unresolved after 30 days, or the customer is dissatisfied with the bank's response, they can approach the RBI Ombudsman through cms.rbi.org.in, subject to eligibility rules.
Customers should retain all transaction records and complaint details.