UPI Refund Rules: When a UPI payment fails, the money is automatically returned to the same account. Most refunds arrive within a few minutes. If your refund is delayed, learn the process.

UPI Refund Rules: Nowadays, almost everyone makes online payments for everyday purposes. In the last few years, UPI has completely transformed the payment system. People can easily send money without cash, from small to large transactions. 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 the refund will be received and what the rules are. Let us explain the rules.

How long does it take for a refund to arrive if a payment fails?

If a UPI payment fails but the money has been debited from the account, the bank automatically refunds the money, as per regulations. In most cases, the money is returned to the account within 24 hours. Often, the refund is 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 hasn't been returned after 24 hours, you can register a complaint by entering the transaction ID in the Help section of the UPI app. The bank issues the refund within 3 to 5 working days after filing the complaint.

Such transactions are subject to significant delays.

Sometimes, the payment appears to fail, but the status remains pending at the bank's end. Refunds in such cases may take longer to arrive, as 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 may take time. Additionally, transactions made at night or during bank maintenance periods are often delayed. If the app repeatedly displays a failed payment, avoid repeated attempts as this increases system errors and could further delay the refund.

What if the money still isn't refunded?

If the money isn't refunded within 24 hours or within the bank's stipulated timeframe, 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 the refund as soon as possible. Therefore, there's no need to panic.