Money debited but UPI payment failed: what RBI's rules say

By Haqdaar · Published 2026-10-17 · Updated 2026-10-17

Under RBI's circular of 20 September 2019, banks must reverse a failed digital payment within set deadlines: T+1 for a failed UPI or IMPS transfer and T+5 for a failed merchant payment or ATM withdrawal, where T is the transaction date and RBI counts calendar days. If they miss it, the bank owes ₹100 per day of delay, without you having to claim it.

What should I do?

1. Note the date, amount and UTR/transaction ID.
2. Complain to your own bank in writing (app, email or branch), quoting the RBI TAT circular and asking for reversal plus compensation.
3. No reply in 30 days, or unhappy with the reply? Complain free to the RBI Ombudsman at cms.rbi.org.in within 90 days of that (Reserve Bank - Integrated Ombudsman Scheme, 2026).

Q&A

Is compensation automatic?

The circular says compensation is credited "suo moto, without waiting for a complaint or claim". In practice, ask in writing.

Working days or calendar days?

Calendar days. The annex says "T is the day of transaction and refers to the calendar date."

Which bank do I complain to?

Your own (the remitter's) bank.

Does it cover wallets and cards?

Yes, the annex covers cards, IMPS, UPI, AePS, NACH and PPIs, each with its own deadline.

Sources

• RBI, "Harmonisation of Turn Around Time (TAT) and customer compensation for failed transactions using authorised Payment Systems", RBI/2019-20/67, DPSS.CO.PD No.629/02.01.014/2019-20, 20 Sep 2019: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=11693
• RBI Complaint Management System: https://cms.rbi.org.in

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This is general information, not legal advice. Haqdaar is not a law firm. Filing yourself is free.