From mint · Aachal Maniyar · · 1m 20s
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.
In brief
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 person-to-person transfers and T+5 days for merchant payments, and pay ₹100 daily compensation if delayed. Originally reported by mint.
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.
What it means
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.
