If a UPI transfer debits your account but does not credit the recipient, RBI requires reversal by T+1 when the beneficiary cannot be credited. If your account is debited but a merchant does not receive payment confirmation, the reversal limit is T+5. T is the transaction's calendar date. The applicable compensation is Rs 100 for each day of delay beyond the relevant deadline.
| Failure covered by RBI | Reversal deadline | Compensation after that deadline |
|---|---|---|
| Transfer debited, beneficiary not credited | Latest by T+1 if the beneficiary cannot be credited | Rs 100 per day of delay |
| Merchant payment debited, confirmation not received at merchant | Within T+5 | Rs 100 per day of delay |
How long does a failed UPI refund take?
The distinction comes from RBI's 20 September 2019 circular on failed transactions. It covers domestic payments and defines a failure as non-completion for reasons not attributable to the customer. The timelines are outer limits, and compensation is to be credited automatically rather than withheld until a customer submits a separate claim.
Calendar days matter. T+1 means the day after the transaction date; T+5 means five calendar days after it. Counting only bank working days would extend the period incorrectly. A bank's later investigation or complaint reference is also different from the original payment date used in this calculation.
Consider a hypothetical eligible transfer whose reversal is completed three days after its T+1 deadline. The delay calculation is Rs 100 x 3 = Rs 300. This illustrates the compensation formula, not an actual claim. The failed amount itself remains separate from the compensation.
What details should a UPI complaint include?
The payment reference connects the debit in your statement to the transaction being investigated. Axis Bank's published dispute instructions ask for the transaction date, amount, reference number and beneficiary UPI details. For a person to person dispute, its instructions also request the beneficiary's account statement; the payer may attach their own statement as supporting material.
That is a concrete example of the records a bank may need. Keep the original debit entry, any reversal entry and the bank's acknowledgement together. A refund complaint is harder to assess if the account entry and payment reference are missing, or if several separate payments have been combined into a single description.
State the failure precisely: whether the recipient was not credited, whether merchant confirmation was missing, and whether the money has since returned. If compensation is disputed, identify the applicable deadline and the recorded reversal date. The bank can then address the principal amount and any delayed compensation as separate parts of the complaint.
When can the complaint go to the RBI Ombudsman?
RBI's current Ombudsman FAQ says the 2026 scheme took effect on 1 July 2026 and replaced the 2021 scheme, subject to transitional provisions for older matters. First complain to the regulated entity concerned. An unsatisfactory reply can then support escalation.
If there is no reply, the FAQ specifies 30 days or the time allowed under applicable RBI, NPCI or card network guidelines, whichever is higher. It also sets a filing limit: the Ombudsman complaint must reach it within 90 days of the expiry of that period or the entity's last communication, whichever is later. The FAQ lists other eligibility conditions, so these dates should not be read as automatic acceptance of every dispute.
Supporting documents include the original complaint and acknowledgement, transaction details, any response and the relief requested. RBI says the scheme is free. Its Complaint Management System provides a complaint number for tracking. The escalation period does not replace the shorter T+1 or T+5 reversal requirement.
Does the same rule cover a wrong recipient or cancelled order?
A successful payment to the wrong recipient and a merchant's refund after a cancelled order should not automatically be described as the technical failures in the table. The first task is to establish what happened to the original transaction. Likewise, a transaction you did not authorise raises a different complaint from a payment you initiated that failed to complete.
For related household finance explanations, see our guides to home loan EMI calculations, FD interest compounding and mutual fund NAV.
