UPI has revolutionised digital transactions in recent years.
Digital transactions have revolutionised the way we conduct financial activities today. These transactions involve the electronic exchange of money or assets between parties, often facilitated through online banking, mobile apps, or digital wallets. This is made possible by Unified Payments Interface (UPI), an instant payment system developed in India by the National Payments Corporation of India (NPCI). It offers unparalleled convenience and speed, allowing individuals and businesses to make payments, transfer funds, and engage in commerce with ease. However, there may be instances when a user needs to reverse a UPI transaction due to reasons such as incorrect recipients, or unauthorised payments.
What NPCI says about reversing a UPI transaction?
The UPI creator has implemented a 'UPI Auto-Reversal' system to tackle this problem. It, however, specifies that the online reversal will be triggered for approved cases when the beneficiary bank marks RET (return) in response to auto update.
The circular also has also mentioned a procedure to be followed by the bank to return the money sent through UPI.
Steps to reverse UPI transactions
The first step to do it contact your bank or UPI service provider's customer support. For raising the request, details like Unique Transaction Reference (UTR) number, date and amount are important.
It is important to report UPI transaction issues promptly as some banks and UPI service providers impose a time limit on such requests.
If the person you have incorrectly sent money to has an account with your bank, officials can directly contact the person and request to reverse the money to you.
If the wrong recipient holds an account with another bank, your bank can only act as a facilitator. It can, however, provide you the details of the branch. Only the manager of that bank branch can help you.
If the recipient fails to respond to your request or the bank is unable to retrieve the amount, a complaint can be filed on the NPCI portal. If the complaint remains unresolved for more than 30 days, you can approach the Banking Ombudsman and escalate the issue.