# UPI Payment Failures: Banks Must Refund and Pay ₹100 Daily Compensation

> Banks must refund failed UPI payments and pay ₹100 per day compensation under RBI rules.
- Title: UPI Payment Failures: Banks Must Refund and Pay ₹100 Daily…
- Summary: Banks must refund failed UPI payments and pay ₹100 per day compensation under RBI rules. Banks must reverse failed UPI transactions within T+1 days for…
- Keywords: rbi, upi, bank, refund, compensation, failed transaction, t+1, t+5, news, india, Payment, Failures
- Source: mint — https://livemint.com/money/personal-finance/upi-payment-failed-but-money-debited-banks-must-refund-and-pay-rs-100-per-day-compensation-under-rbi-rules-11792774013883.html
- Author: Aachal Maniyar
- Published: 2026-10-23T17:54:52+00:00
- Read time: 1 min
- Topics: rbi, upi, bank, refund, compensation, failed transaction, t+1, t+5, news, india
## RBI Rules on Failed UPI Transactions
The Reserve Bank’s framework sets clear deadlines for reversing failed UPI transactions and customer compensation.
## When UPI Payments Fail
A glitch in the sender’s bank, beneficiary’s bank, NPCI’s switching network, or the app itself can cause payment failure after debit.
## Refund Timeline for Person-to-Person Transfers
Banks must reverse person-to-person UPI transfers within T+1 day if the credit cannot be completed.
## Refund Timeline for Merchant Payments
Banks must reverse merchant UPI payments within T+5 days if the credit cannot be completed.
## Compensation for Delayed Refunds
Banks must pay ₹100 per day for every day the refund is delayed beyond the deadline.
## What to Do If Refund Is Delayed
Check UPI app status, raise a dispute, contact bank, or escalate to NPCI’s complaint portal if the issue remains unresolved.
## How to Avoid Fraud During Refund Process
Keep transaction details and stay alert to prevent scams while waiting for refunds.
## Key takeaway

Banks must reverse failed UPI transactions within T+1 days for person-to-person transfers and T+5 days for merchant payments, and pay ₹100 daily compensation if delayed.