UPI Failed Transaction: Refund Time, Rules, and What You Should Do

UPI Refund Rules: Nowadays, almost everyone makes online payments for everyday purposes. In the last few years, UPI has completely transformed the payment system. From small to large transactions, people can easily send money without cash. However, sometimes due to network issues, bank server downtime, or technical problems, UPI payments fail. Sometimes, the money is deducted from the account and never reaches the receiver. In such a situation, the biggest question is when will the refund be received and what are the rules? Let us explain the rules for this.

How long does it take to get a refund if the payment fails?

If a UPI payment fails but the money has been debited from the account, the bank automatically issues a refund, as per regulations. In most cases, the money is returned to the account within 24 hours. Refunds are often received within a few minutes. However, if the bank server is overloaded, it may take a little longer.

You don’t need to file a separate complaint with the bank or the app, as the entire process is handled automatically through NPCI’s reconciliation system. If the money isn’t returned after 24 hours, you can file a complaint by entering the transaction ID in the Help section of the UPI app. The bank will issue a refund within 3 to 5 working days of filing the complaint.

Sometimes, the payment appears to be failed, but the bank’s status is still pending. In such cases, refunds may take longer to arrive because the bank first clears the transaction and then reverses it. If the transaction is being sent to a user with a different bank, syncing between the two banks’ servers can take time. Additionally, transactions made overnight or during the bank’s maintenance window can be delayed. If the app repeatedly displays a failed payment, avoid repeated attempts, as this will increase system errors and further delay the refund.

What to do if the money is still not returned?

If the money isn’t returned within 24 hours or the bank’s deadline, you can contact the UPI app, bank branch, or customer service directly. By providing the transaction number, transaction time, and transaction amount, the bank will track the case. According to NPCI regulations, such cases are not ignored, and the bank must issue a refund as soon as possible. Therefore, there’s no need to panic.