Introduction

Unified Payment Interface or UPI has become an inevitable part of daily transactions. Since UPI’s inception in 2016 by the National Payments Corporation of India (NPCI), the payment structure has undergone a drastic transformation, making it a preferred mode of payment.

This real-time payment system transfers funds from one bank to another via a single application. The user can easily link multiple bank accounts on the app and make payments seamlessly. 

Accessible via any smartphone, UPI facilitates instant payments making it easy for the user to transact anytime, anywhere. However, UPI transactions done on a smartphone are prone to typo errors, wrong entry of UPI ID, and other such issues. If anything of that sort happens, a wrong UPI transaction complaint must be initiated by the sender to the recipient.

Common issues faced by UPI users

The most common issues faced by a UPI user are:

Wrong Transactions

Entering an incorrect UPI ID or account number while transacting via UPI can transfer money to the wrong account. Transactions when duplicated also lead to wrong UPI transactions.

Scams & Frauds 

People with wrong intentions can share fake UPI payment requests, QR codes, and links to transfer money to their accounts. 

Technical Issues

UPI transactions may fail due to technical glitches. There are times when transactions take more than usual time to process and show status as “Pending” due to a technical failure.

Account Linking

Sometimes the user’s bank account is not linked to the UPI ID which hinders transactions. If a user has more than one UPI ID, it can also lead to confusion leading to wrong transactions.

Data Security

If the UPI app in use doesn’t have adequate security features like two-factor authentication, the account can easily be hacked breaching data security and privacy. 

Importance of knowing how to handle UPI transaction issues

UPI is the most advanced digital mode of payment which has established trust within its users. It involves real-time fund transfers. However, it is the responsibility of the user to stay aware of the possible frauds and scams that can happen when doing transactions via UPI. 

The users need to keep themselves updated about their consumer rights, file a wrong UPI transaction complaint immediately, and safeguard their bank accounts. 

What is a wrong UPI transaction?

A wrong UPI transaction occurs whenever a sender enters incorrect details while undertaking a transaction via UPI. The sender must check and verify details like the Virtual Payment Address (VPA), mobile number, and QR code of the recipient before making any UPI transaction. 

Since entering the above-mentioned details is a manual thing, it is prone to human error.

Anyone can enter wrong details while transacting but the good news is that a wrong UPI transaction can be reversed. This can be done by complaint for a wrong UPI transaction.

What to do when a UPI transaction goes wrong?

The immediate steps a user can take whenever a UPI transaction goes wrong:

• First things first, “Do not panic” because UPI transactions when done wrong can be reversed provided they are legitimate.
• The quickest way to reverse a wrong UPI transaction is to take action immediately in a calm state of mind. The user can immediately raise a complaint in this case.
• Identify the reasons behind UPI transaction failure and take action based on the same. Try to take action for a wrong UPI transaction within 24 hours.

What are the reasons behind wrong UPI transactions?

These are the possible reasons behind wrong UPI transactions

Wrong Details

The most common reason behind wrong UPI transactions is the incorrect entry of the receiver’s details. The transaction is bound to go wrong or fail if there is a typing error or the intended recipient’s details are entered incorrectly.

Wrong PIN 

Another classic reason behind UPI transaction failure is incorrect PIN. It is necessary to enter the correct UPI PIN for a successful transaction. Multiple entries of the wrong UPI PIN can also lead to transaction failure.

Technical Issues

UPI is an online payment mode and technical mishaps are reason enough to fail any UPI transaction. Technical issues could be anything from network connectivity to failure of the respective UPI platform in use, user’s device issue, and the malfunctioning of the bank’s server.

Transaction Time Limitation

There is a time restriction for certain UPI transactions. If the user exceeds the specified time limit, the transaction is bound to fail.

Bank Balance

The user must maintain a sufficient bank balance before undertaking any UPI transaction. If there’s not enough amount in the bank account required for the transaction, it will fail.

Daily UPI Limit

UPI transactions have a daily limit. If in case, it is exceeded, the transaction will fail.

How to reverse a wrong UPI transaction?

There are multiple reasons behind a UPI transaction gone wrong. But the fact that you can reverse a wrong UPI transaction by taking the following measures makes it the best payment mode.

• You can reach out to your Payment Service Provider (PSP) or Third Party Application Provider (TPAP) to inform them about the wrong transaction.
• You can contact your bank and share all the necessary transaction details like Unique Transaction Reference (UTR), the amount involved in the transaction, and the recipient’s details, etc.
• You can also try and contact the recipient who has received the money incorrectly and convince them to return the amount to you.
• In case, the recipient denies it, you can raise a wrong UPI transaction complaint with NPCI. 
• If you have raised a UPI payment complaint with NPCI and there’s no outcome after 30 days, you can escalate the complaint to the Banking Ombudsman, an authority that handles complaints from customers of banks.
• It is important to note that an incorrect UPI transaction is entitled to a refund. 

Conditions under which a UPI transaction can be reversed

A wrong UPI transaction can be reversed under the following circumstances:

If the transaction is duplicated

In case the sender has made the same payment twice, the recipient can reverse one of the transactions. This can be done automatically if the UPI system detects duplication.

If the transaction is wrong or fraud

If the transaction done via UPI is fraud or made to the incorrect recipient, in that case, the recipient can return the amount and reverse the transaction.

If there’s a technical failure

In case the transaction fails and the amount is debited from the sender’s account, it is reversed automatically within a few hours. In case, it doesn’t, the sender can raise a UPI payment complaint with the bank.

If the authorization is due

In case a transaction is under process for a long period due to technical glitches, it may get reversed automatically if not completed.

If the bank intervenes

If a bank detects a fraudulent transaction, it can intervene to reverse the UPI transaction.

Step-by-step guide on reversing a transaction using different UPI apps

Here’s a step-by-step guide on how to reverse a transaction using popular UPI apps 

Guide on reversing a transaction using Google Pay UPI

• Open the Google Pay on your phone 
• Visit the transaction history page
• Look out for the transaction willing to reverse
• Report the issue with that particular transaction
• Select the issue related to that transaction 
• Submit the request 
• Google Pay will update you about the request raised via app or email

Guide on reversing a transaction using PhonePe UPI

• Open the PhonePe app on your device
• Go to the Transactions option
• View all the details of the transactions
• Report the issue for the respective transaction
• Enter details if required and raise the request 
• You will be able to track the request raised through the app or email

Guide on reversing a transaction using Paytm UPI

• Go to the Paytm app on your phone
• Open the Balance & History tab
• Navigate to the particular UPI transaction that needs to be reversed
• Click on ‘Help’ as visible 
• Raise your issue after providing the necessary information
• Paytm will accept your request and update you over email

How to file a wrong UPI transaction complaint?

Here’s your step-by-step guide to file a wrong UPI transaction complaint with NPCI.

Step 1: Visit the link – https://www.npci.org.in/what-we-do/upi/dispute-redressal-mechanism

Step 2: Scroll down to the ‘complaint’ box. Select the nature of the transaction from the drop-down menu. Also, select the related issue from the options available.

Step 3: Enter other necessary details like transaction ID, UPI ID, email ID, date of transaction, registered mobile number, and amount, and select the bank from the list. Add necessary comments to explain the issue.

Step 4: Upload your updated bank account statement. 

Step 5: Submit the request.

How to complain about your bank’s customer service?

Here’s how you can complain to your bank for a wrong UPI transaction:

• Keep your UPI transaction details handy like the date and time of the transaction, the amount involved, transaction ID, recipient’s UPI ID, your bank account details, and registered contact number.
• Reach out to the customer service of the bank and inform them of the issue in detail. Follow their instructions.
• Send an email to the bank’s email address explaining the issue and mentioning all the details of the transaction. Attach your updated bank account statement as well.
• You can visit the bank’s nearest branch to resolve the issue in person by speaking to the manager. Carry all the necessary documents along with you.
• Track the UPI payment complaint using the bank’s app, customer service, or website.
• If the issue remains unresolved, raise it further to NPCI or the Banking Ombudsman.

Reversing UPI transactions challenges

Here are some common challenges faced during the reversal process:

Delayed Action

You need to report the wrong UPI transaction immediately. Any delay in this process lowers your chances of reversing the transaction. UPI transactions are instant and if an action is not taken immediately, the wrong recipient can withdraw the amount and use it.

Slow or Inefficient Customer Service 

It is important to have reliable customer service on the UPI app you are using. The service should be quick to help you resolve the issue at the earliest. 

Recipient’s Agreement

If the wrong recipient agrees to reverse the UPI transaction, there is nothing like that. However, if the recipient does not intend to return the amount sent to his bank account mistakenly then there’s an issue as reverse UPI transactions need the recipient’s consent for reversal.

Multiple Parties Involved

UPI reverse transaction involves multiple stakeholders inclusive of the sender’s bank, the receiver’s bank, the UPI server provider, and of course, NPCI. To get a UPI transaction reversed, all these parties must be contacted which can be time-consuming.

Lack of Awareness

Users may be unaware of how to report a wrong UPI transaction. This causes a delay in the reversal process. Some of the users may not fully understand the reversal process leading to more complications.

Legal Complications

If the recipient is a fraud or a scammer, legal actions become necessary which are a challenge as they are complex, costly, and time-consuming.

Limited Regulatory Support

There is limited regulatory support to enforce reversals. Banks may take their time to comply with regulatory guidelines to handle disputed transactions causing more delay.

Refund Timeline

When a reversal is successful, the refund or reversal may take time considering the involvement of multiple stakeholders in the process. 

Tips to deal with UPI frauds 

Download Trusted Apps

Use apps downloaded from official sources and not third-party app stores. Review all the permissions and allow only if they appear appropriate.

DO NOT SHARE YOUR PIN/OTP

The importance of not sharing sensitive information like UPI PIN and OTP has been highlighted time and again by the government. Do not share such sensitive information with anyone in person, over the phone, or chats.

Check Transaction Details

Double-check the recipient’s details before undertaking any transaction. Ensure that the UPI ID, QR code, and phone number entered are correct and only then proceed to complete the transaction.

Stay Updated 

It is vital to stay updated on the scams done via unauthorized links, SMS, email, and apps. Verify the source before clicking on any link.

Track Your Bank Account 

Review your bank account and UPI transaction history regularly to identify any unauthorized transactions.

Enable Strong Passwords

Use a strong and unique UPI PIN to avoid hacking. Keep updating the PIN to minimize the risk of unauthorized usage.

Report Fraud

Take quick action whenever you feel suspicious about any transaction. Contact your bank or UPI app to report fraudulent transactions. 

Phone Security

Your smartphone’s operating system and UPI app should be updated to avoid data breaches. This helps enhance security. 

Overview of common UPI frauds and scams

UPI transaction scams like tricking into sharing OTP, UPI PINs, and other sensitive information have become prevalent. There are multiple ways to scam an individual using wrong links, SMS, fake calls, and QR codes. It becomes important for a UPI user to be digitally advanced and aware of the possible scams. 

Conclusion

UPI is the most convenient way to transfer funds on the go, however, staying vigilant against potential scams and frauds is the ideal solution. 

Frequently Asked Questions

What is a wrong UPI transaction?

Whenever a sender transfers funds to the wrong recipient, that’s when a wrong UPI transaction occurs. This could be because of incorrect UPI details, the wrong amount entered, or duplicate payments.

What to do if a UPI transaction goes wrong?

• Try and reach out to the recipient 
• Report it immediately on the UPI app in use
• Identify the reason behind the wrong transaction
• Escalate the issue to your respective bank
• If not resolved, escalate it to NPCI and further to the Banking Ombudsman

What is the Banking Ombudsman?

The Banking Ombudsman is an authority appointed by the Reserve Bank of India (RBI) to resolve customer issues raised against banks and financial institutions.

What are the preventive measures for UPI users?

• Cross-check the recipient’s details
• Do not share UPI PIN
• Use verified apps with multiple-factor authentication
• Lock your app
• Stay updated about the UPI scams 

Can a UPI transaction be reversed?

Yes, a UPI transaction can be reversed if it occurs due to any technical issues or fraudulent activity. In this situation, the sender must immediately raise the concern to the UPI app in use or the respective bank to return the amount debited from their account.

Is it possible to get money back after a wrong UPI transaction?

Yes, it is possible to get a refund for a wrong UPI transaction. This can be done by filing a complaint via a Payment Service Provider (PSP) or Third Party Application Provider (TPAP). The sender can also reach out to their respective bank to get their money back.

Can a wrong UPI Gpay transaction be reversed?

A successful UPI transaction via Gpay can be reversed if the amount is sent to the wrong recipient. The sender can immediately raise the issue on the Gpay application and inform their support to help them resolve the issue.

Where to file a wrong UPI transaction complaint?

A wrong UPI transaction complaint can be raised on the UPI app in use on which the transaction is done. The same complaint can be raised to the concerned bank. And, the sender can also raise the issue with NPCI by visiting their official website. 

Are there any UPI reversal charges?

UPI reversal charges mean when a transaction is reversed and the amount deducted from the sender’s account is refunded to them. 

How much time does it take to get a refund for a wrong UPI transaction?

The concerned bank will refund the amount within 3 to 5 working days starting from the date payment is made. However, there are cases when the bank refunds the deducted amount immediately.