UPI Transaction Failed But Money Debited? Steps To Get Your Refund
Share this article:
Unified Payments Interface (UPI) has transformed digital payments in India by enabling instant money transfers between bank accounts. However, at times, a UPI transaction may fail while the amount still gets debited from your account. In most cases, this is a temporary issue and the money is automatically refunded within a few business days.
If the refund does not appear within the expected timeframe, there are several redressal mechanisms you can follow to raise a complaint and retrieve your money.
Contact Your Bank First
If you do not receive the refund within one hour of the failed transaction, the first step is to contact your bank’s customer support. Most banks are equipped to check the transaction status and initiate the reversal process quickly.
Raise a Complaint with the UPI App
UPI transactions are often carried out through third-party app providers (TPAPs) such as Google Pay, PhonePe or Paytm. If your issue persists, raise a complaint directly in the app. These apps display the transaction history and allow you to track the status of your complaint.
TPAPs act as service providers to Payment Service Provider (PSP) banks and connect users with the UPI infrastructure managed by the National Payments Corporation of India (NPCI).
Escalation Levels for Unresolved Complaints
If your grievance remains unresolved, you can escalate it step by step in the following order:
Using NPCI’s UPI Dispute Redressal Mechanism
The NPCI provides a dedicated dispute redressal platform:
Last Resort: Approach the Ombudsman
If all other attempts fail, customers can escalate the issue to the RBI Banking Ombudsman or the Ombudsman for Digital Complaints. These regulatory bodies provide the highest level of grievance redressal for unresolved payment disputes.
A failed UPI transaction with money debited can be stressful, but the system is designed to ensure your funds are safe. In most cases, the refund is processed automatically. If delays occur, follow the proper complaint redressal channels—from your UPI app to NPCI, and if required, to the RBI Ombudsman—to get your money back.
If the refund does not appear within the expected timeframe, there are several redressal mechanisms you can follow to raise a complaint and retrieve your money.
Contact Your Bank First
If you do not receive the refund within one hour of the failed transaction, the first step is to contact your bank’s customer support. Most banks are equipped to check the transaction status and initiate the reversal process quickly.
Raise a Complaint with the UPI App
UPI transactions are often carried out through third-party app providers (TPAPs) such as Google Pay, PhonePe or Paytm. If your issue persists, raise a complaint directly in the app. These apps display the transaction history and allow you to track the status of your complaint.
TPAPs act as service providers to Payment Service Provider (PSP) banks and connect users with the UPI infrastructure managed by the National Payments Corporation of India (NPCI).
Escalation Levels for Unresolved Complaints
If your grievance remains unresolved, you can escalate it step by step in the following order:
- TPAP (UPI app provider)
- PSP Bank (the partner bank behind the app)
- Your account-holding bank
- NPCI (National Payments Corporation of India)
Using NPCI’s UPI Dispute Redressal Mechanism
The NPCI provides a dedicated dispute redressal platform:
- Visit the official website: npci.org.in
- Navigate to What We Do → UPI
- On the UPI page, locate Dispute Redressal Mechanism
- Select between two complaint categories: transaction or non-transaction
- Enter the required details and submit your complaint online
Last Resort: Approach the Ombudsman
If all other attempts fail, customers can escalate the issue to the RBI Banking Ombudsman or the Ombudsman for Digital Complaints. These regulatory bodies provide the highest level of grievance redressal for unresolved payment disputes.
A failed UPI transaction with money debited can be stressful, but the system is designed to ensure your funds are safe. In most cases, the refund is processed automatically. If delays occur, follow the proper complaint redressal channels—from your UPI app to NPCI, and if required, to the RBI Ombudsman—to get your money back.
Next Story