Made a payment to the wrong UPI ID? Here’s how to reverse it.
Unified Payments Interface (UPI) is a rapid payment system developed in India by the National Payments Corporation of India (NPCI).
UPI has brought about a digital revolution in recent years.
Digital transactions have transformed the way we handle our financial activities today. These transactions involve the electronic transfer of money or assets between parties, often facilitated conveniently through online banking, mobile apps, or digital wallets. This has been made possible by the Unified Payments Interface (UPI), a fast payment system developed by the National Payments Corporation of India (NPCI).
While it offers exceptional convenience and speed, there may be occasions when UPI transactions need to be reversed due to reasons such as incorrect beneficiaries or unauthorized payments.
What Does NPCI Say About Reversing UPI Transactions?
To address this issue, the creator of UPI has implemented the ‘UPI Auto-Reversal’ system. However, it specifies that online reversals for approved cases will only be triggered when the beneficiary bank marks it as ‘return’ in response to an auto-update.
The circular also mentions the process adopted by banks to return money sent via UPI.
Steps to Reverse UPI Transactions
To do this, the first step is to contact your bank or UPI service provider through customer support. Details such as the Unique Transaction Reference (UTR) number, date, and amount are essential for raising the request.
Reporting UPI transaction issues promptly is crucial because some banks and UPI service providers impose time limits on such requests.
If the incorrect beneficiary has an account with your bank and fails to respond to your request or is incapable of refunding the amount, your bank can directly reach out to that individual and request them to return the money to you.
If the incorrect beneficiary’s account is with another bank, your bank can only act as a facilitator for the service provider. However, it can provide you with the branch details of that bank. Only the manager of that bank branch can assist you.
If the beneficiary is unresponsive or unable to refund the amount, you can file a complaint on the NPCI portal. If the complaint remains unresolved for more than 30 days, you can contact the Banking Ombudsman and escalate the issue.
So, if you ever make a UPI payment to the wrong recipient, don’t panic. Follow these steps and take prompt action to rectify the situation.