Don't worry if a UPI payment fails! If the money deducted from your account is not returned, the bank will pay compensation..

Making payments via UPI has become common these days; however, there are instances where money is deducted from one's account but fails to reach the intended recipient. In such situations, customers often worry about when they will get their money back. If this has happened to you, there is some good news: according to Reserve Bank of India (RBI) regulations, if the money is not returned within a specified timeframe, the bank may be required to pay a compensation of ₹100 for every day of delay.

Within what timeframe should the money be returned?
The RBI has established specific timeframes for failed transactions, depending on whether the payment was made to an individual or a merchant. If money is deducted from your account but does not reach the recipient, it should be returned by 'T+1' day. If the money is deducted but the merchant does not receive confirmation of the payment, it should be returned within 'T+5' days.

Here, 'T' refers to the day the transaction took place. If the funds are not returned even after the stipulated timeframe, you may be entitled to compensation of ₹100 per day under the applicable rules.

What should you do if the money is not returned?
If a UPI payment fails and money is deducted from your account, avoid making an immediate repeat payment. First, check the status of the transaction within the app, then follow these steps:

1. Check the transaction history in the app you used (e.g., Google Pay, PhonePe, Paytm, etc.).
2. Keep a record of the transaction ID, date, time, and a screenshot showing the deduction of funds.
3. File a complaint using the 'Help' or 'Grievance' option within the app.
4. If the issue remains unresolved, contact your bank and keep the complaint reference number safe.
5. If you do not receive your money or the compensation even after the specified timeframe, reach out to the bank's grievance redressal department. If the issue remains unresolved even after lodging a complaint with the bank, you may file a complaint through the RBI’s grievance portal, cms.rbi.org.in, subject to eligibility and the applicable procedure.

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