10Digital Payments and UPI System

Digital payments have significantly simplified our daily lives. Whether sending money or making a payment, UPI apps make it a snap. However, sometimes UPI transactions fail, resulting in the funds being deducted but not reaching the recipient. If your money isn’t returned, you have the legal right to compensation.

Procedure for obtaining compensation

• Step 1: Firstly, wait till T+1 day after the UPI transaction fails.


• Step 2: If the money is not refunded, go to your UPI app (like Google Pay, PhonePe, or Paytm) and file a dispute or complaint.


• Step 3: If the issue is still not resolved, lodge a complaint on RBI’s CMS portal (cms.rbi.org.in).


• Step 4: Clearly state in your complaint that the bank is violating the deadline (TAT). According to RBI rules, the bank must pay ₹100 for each day of delay.

Important Points

This rule only applies when the transaction fails and the money is deducted but doesn’t reach the intended recipient. If you accidentally send money to the wrong person, this rule won’t work.