My UPI Transaction Failed, But Money Was Debited!" – Your Indian Grievance Guide

It was 8:55 AM, and Arjun had just ordered breakfast from his favourite dosa place. He paid via UPI, got a “transaction failed” message, but ₹285 was debited instantly. ‘Ye konsa matrix hai?’ The food didn’t come, the money was gone, and so was his mood.

Arjun’s situation isn’t rare. In fact, here's what most people face:

With over 18.68 billion UPI transactions every month in India, glitches are bound to happen. But what matters is how quickly and effectively you act. This blog is your guide for situations like this. Trust us, you will get your money back. 

1. Check for Automatic Reversal by T+1

Minakshi sent ₹4,200 via UPI on June 8. The next day, ₹4,200 was back in her account, so no action was needed.

RBI mandates that failed UPI transfers must be reversed by T+1 (the next working day). If the beneficiary bank delays, it’s a direct violation, and you’re entitled to a refund. ‘Sadda haq!’ 

Read More – How to Delete PhonePe Transaction History

For example, on April 15, Prerna paid her rent of ₹12,000 via Paytm UPI. The app crashed midway. The amount got debited, but didn’t reflect on her landlord’s side. She waited, and by April 16 evening, ₹12,000 was refunded automatically.

2. Raise a Complaint through UPI or Bank App

When Pooja’s ₹7,800 transfer didn’t reverse within 48 hours, she filed a complaint via her UPI app using the UTR. Within 24 hours, her money was refunded.

Filing a dispute in-app or via your bank with the UTR starts the formal resolution process under NPCI’s grievance protocol. Quick logging often gets faster redressal. ‘Pehle phone ko uthao ji, bank ko milao jis, unki gal-ti-yon ke baare mein unhe bhi btao ji!’

For example, on March 30, Kunal tried transferring ₹7,850 to a vendor through PhonePe. The transaction failed, and the refund didn’t come by April 1. He raised a dispute via the PhonePe support tab, using the UTR number. His account was credited by April 3.

This is the data we received from Kunal:

3. Escalate to the RBI Ombudsman After 30 Days

Sandeep’s failed ₹3,900 transfer hadn’t been addressed even after 30 days. He filed an RBI Ombudsman complaint and received ₹3,900.

If your bank or NPCI doesn’t resolve your case within 30 days, escalate to the RBI Ombudsman. This is your right under the Digital Transactions Scheme. This ensures mandated resolution and penalties. ‘Jiska koi ni hota, uska RBI hota hai! ’

Also Read – My Bank Froze My Account!" – What to Do

For example, Tanvi transferred ₹5,200 to her friend on Feb 1 via BHIM UPI. The money was debited but never credited. She raised a ticket with the bank on February 2 but received no solution after 32 days. She escalated to the RBI Ombudsman on Mar 5 and got her refund on Mar 10.

These are the details about her complaint:

Conclusion

UPI failures can be frustrating, but take timely action to ensure refunds. From auto-reversals to RBI escalations, knowing your rights is important. Don’t panic, follow the process, raise a complaint, and let the system work for you.

Frequently Asked Questions

1. What happens if a UPI transaction fails but money was debited?

Your bank must auto-reverse the amount by T+1 working day. 

2. How to complain about a UPI failed transaction?

Report the issue via your UPI app or the NPCI dispute portal. Include transaction ID, bank details, and screenshots. If unresolved, escalate to Banking Ombudsman. 

3. Can UPI payments be reversed?

Yes. If there's a technical error or wrong recipient, the UPI system automatically reverses within 24-48 hours. You can also raise a manual complaint proactively.

4. What if money is debited but the transaction fails in GPay?

Wait for T+1 day. If not reversed, escalate via GPay’s in-app help or toll-free support, then file a dispute on the NPCI UPI portal.

Apply for Loans Fast and Hassle-Free

Apply Now

About the Author

LoansJagat Team

We are a team of writers, editors, and proofreaders with 15+ years of experience in the finance field. We are your personal finance gurus! But, we will explain everything in simplified language. Our aim is to make personal and business finance easier for you. While we help you upgrade your financial knowledge, why don't you read some of our blogs?