UPI transaction failed? Here's how to seek compensation as per RBI's rule
Last Updated: 2026-07-21 21:15:12
RBI rules allow compensation of Rs 100 per day when banks miss prescribed refund deadlines for eligible failed UPI transfers and merchant payments.
A failed UPI payment can leave users worried when money is debited but does not reach the recipient or merchant. Such transactions are generally reversed automatically, but Reserve Bank of India rules also provide compensation when the refund exceeds the prescribed timeline.
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The compensation applies to eligible domestic transactions and should be credited automatically. However, users may need to file a complaint if neither the refund nor compensation arrives.
Check Which Refund Deadline Applies
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For a person-to-person UPI transfer where the sender’s account is debited but the beneficiary is not credited, the transaction should be reversed by the end of the following day, referred to as T+1. Here, “T” is the transaction date.
If the reversal takes longer, compensation of Rs 100 for every additional day of delay becomes payable.
For a payment made to a merchant where the account is debited but the merchant does not receive confirmation, the bank gets up to T+5 days to reverse the amount. A delay beyond this period attracts compensation of Rs 100 per day.
These rules cover technical failures. They do not ordinarily apply when money reaches the wrong person because the user entered an incorrect UPI ID or approved the wrong recipient.
Raise a Complaint Through Your UPI App
Open Google Pay, PhonePe, Paytm, BHIM or the app used for the transaction. Go to the transaction history, select the failed payment and choose the option to report a problem or raise a complaint.
Keep the UPI transaction ID, amount, date, recipient details and screenshots available. Save the complaint or ticket number for further escalation.
If the issue remains unresolved, contact the bank linked to the debited account. Clearly request both the transaction reversal and applicable delay compensation under the RBI’s failed-transaction framework.
Escalate the Complaint if Required
Users can also register or track a complaint through NPCI’s complaint facility. NPCI forwards eligible complaints to the relevant member bank or institution for resolution.
If the bank rejects the complaint, provides an unsatisfactory response or fails to reply within 30 days, the matter can be taken to the RBI Integrated Ombudsman through the Complaint Management System portal.
Do not share your UPI PIN, OTP or card details while seeking support. Banks, UPI apps and NPCI representatives do not require a UPI PIN to process a refund or complaint.
Compensation Should Be Automatic
RBI rules require compensation to be credited without waiting for a separate claim when the prescribed timeline is breached. Users should nevertheless monitor their statements because the refund and compensation may appear as separate entries.