Attention Google Pay and PhonePe Users: Failed UPI Transactions? Claim Compensation from Your Bank

If a UPI transaction fails and your money has been debited but not credited to the recipient, there’s no need to panic. According to the Reserve Bank of India (RBI) guidelines, if banks or payment apps do not refund the money within the prescribed timeframe, they are liable to pay penalty compensation for the delay.

How the Compensation Works
When a UPI transaction fails, the debited amount should typically be refunded on the same day or by the next business day (T+1). If the money is not returned within this period, you can raise a complaint through your UPI app—such as Google Pay, PhonePe, or Paytm.

If the app does not resolve the issue, you can escalate your complaint to the RBI’s Complaint Management System (CMS) portal at cms.rbi.org.in. It is important to mention the delay in refund in your complaint, as banks are required to pay ₹100 per day as compensation until the money is refunded.

Steps to File a Complaint

1. Open your UPI app (Google Pay, PhonePe, or Paytm).
2. Locate the failed transaction and select the ‘Dispute’ or complaint option.
3. Provide all necessary details, including the transaction ID and the delay period.
4. If the app does not resolve your issue, register your complaint on the RBI CMS portal.

This measure ensures that banks and payment apps process refunds promptly and provides users with compensation for delays, reinforcing consumer protection in the digital payment ecosystem.