If your money is deducted after a failed UPI transaction and you don't receive a refund on time, there's no need to worry. According to RBI rules, if there is a delay beyond the stipulated time of T+1 (i.e., the transaction day + the next working day), the bank has to pay a compensation of ₹100 per day. Let's tell you the complete process for claiming compensation.

Digital payments have made our lives much easier. Whether it's sending money to someone or making a payment, you simply open the UPI app, enter your PIN, and the job is done. But sometimes, UPI transactions fail, and a message appears on the screen indicating that the money has been deducted but hasn't reached the recipient. You should know that if the bank or app delays the refund, you are legally entitled to compensation.

Let's say your UPI payment failed, and the money was deducted but not returned. Sometimes banks or apps hold onto the money. This process is the solution to this problem. If you don't receive a refund within the stipulated time, you can claim compensation for each day of delay. According to RBI rules, if the money from a failed UPI transaction is not returned within T+1 days (i.e., the next working day after the transaction day), the bank has to pay ₹100 for each day of delay until the refund is processed.

How to Claim Compensation?

Step 1: If your UPI transaction fails and money is deducted, first wait for T+1 days (i.e., the transaction day + the next working day).Step 2: If the money is still not returned after this period, raise a dispute/complaint through your UPI app (Google Pay, PhonePe, Paytm).Step 3: If the issue is still not resolved, file a complaint directly on the RBI's CMS portal (cms.rbi.org.in).Step 4: Clearly state in the complaint that the bank is delaying the process beyond the stipulated time (TAT). According to RBI rules, the bank is liable to pay ₹100 per day for each day of delay.

Important points to note:

This rule applies only in cases where your transaction failed, the money was debited from your account, but the recipient did not receive it. This rule does not apply if you accidentally sent money to the wrong person.