UPI Transaction Complaint: Your Guide to Resolution

You use UPI for everything, from shopping to paying utility bills. But what if the amount is debited, but the transaction is still incomplete? It usually happens due to technical reasons, network issues, or banking errors. But you can easily get a refund with a quick resolution process as per the RBI and NPCI rules.

Let’s find out why the transaction fails, steps to get a refund, and how you can prevent future transaction failures.

Common Reasons: Transaction Failed, but Money Deducted

There are multiple reasons why your money is debited, but the transaction fails. When you know the reasons, you can better proceed with the next steps.

Let’s find out the reasons why your transaction failed, but the money was debited:

Technical Glitches

• Weak internet connection during the transaction
• Maintenance of bank servers or UPI infrastructure
• System overload due to peak hours or sales causes delays in processing
• Communication breakdown between UPI apps and banking infrastructure

Complications in Banking Systems

• Transaction timeouts due to the time taken for verification
• Money is stuck due to restrictions in the recipient’s account
• Reconciliation delays for transactions between different banks

App-related Issues

• Software issues in payment apps
• Outdated versions of the app
• Long time to process leads to expired sessions mid-transaction
• Cache and data issues affect the status updates

Human Errors

• Wrong UPI ID or mobile number
• Transactions during maintenance windows
• Repeatedly trying failed transactions may lead to duplicate debits

External Factors

• Errors with gateway providers or payment aggregators
• Disruptions in infrastructure during processing due to power outages
• Security concerns leading to system lockdowns

Also Read - How to Check Your Bank Account Balance

Steps After a Failed UPI Transaction

When the UPI transactions fail, here’s what you should do immediately:

Check Your Transaction Status

• Open the UPI app and locate the transaction
• Look for tags such as Failed, successful, or pending

Tip: Check notifications or SMS alerts to get updates on transaction status

Wait for a Few Hours

Wait for 24-48 hours for the amount to be credited back to your account. Check your bank statement for entries, such as “UPI-RET” or “UPI-REV.”

Contact Your Payment Service Provider (PSP)

If you don’t receive a refund within the expected timeframe, raise a complaint via the UPI App:

• Open the app
• Locate the transaction
• Choose the option to raise a complaint

File a Complaint with Your Bank

Connect with the customer care support of the bank and provide transaction details, including:

• UPI transaction ID
• Date
• Amount

Register a Complaint With NPCI

• Visit either the NPCI Dispute Redressal Mechanism  or the Complaint Registration Page
• Fill in the required details
• Submit the form to register a complaint
• NPCI will forward your complaint to your bank. You will be updated about the status via email

Contact the RBI Ombudsman

If the bank doesn’t resolve the issue in a month, you can raise the issue under the Integrated Ombudsman Scheme, 2021. It provides a free-of-cost resolution of issues with service deficiency by RBI-regulated entities.

UPI Refund Time: What to Expect

The RBI has set the maximum turnaround time for failed transactions. Here’s the timeline:

• When the amount is debited from your account but not credited to the receiver's account, the bank processes auto-reversal by T+1 day
• When the payment is made to a merchant and the amount is debited from the sender’s account, but the transaction confirmation is not reflected at the merchant’s location, the refund should be processed within T + 5 days

If the refund is not credited within these timelines, you will get compensation as per the RBI guidelines.

Preventing Future UPI Transaction Complaints

To ensure successful UPI transactions, here’s what you should do:

• Use a strong internet connection when making a payment
• Keep your UPI app updated
• Do not share your UPI Pin with anyone
• Verify the recipient’s identity before you pay
• Review your bank statements regularly to spot and resolve unauthorised transactions
• Try to make payments during non-peak hours
• Make payments through official banking apps or verified payment gateways with HTTPS encryption

Herofincorp's Role in Secure Digital Payments

When money is deducted but the transaction fails, you usually get a refund within a few hours. If you don’t, you can connect with the UPI customer support, your bank, or the NPCI to raise a dispute.

But what if you were making an urgent payment, and your funds are stuck due to a transaction failure? In such cases, Hero Fincorp helps you meet the demand with a personal loan. You get quick approval with a paperless process.

Just install the app, apply for a personal loan, and deal with unexpected funding needs easily.

Frequently Asked Questions

Can I cancel a UPI transaction after it's initiated?

No, you cannot cancel a UPI transaction after you have entered the PIN number and initiated it.

What proof do I need to submit for a UPI transaction complaint?

To submit a UPI transaction complaint, you need your UPI ID, transaction reference number, amount involved, time and date of transaction, and the error message you received.

How do I check the status of my UPI complaint?

To check UPI complaint status, open your UPI app or visit NPCI’s website, enter the reference number, and check the details.

Is there a charge for raising a UPI transaction complaint?

No. Generally, there is no charge to raise a UPI transaction complaint.

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