It happens to most people at some point: the app shows "failed" or "pending", but the money has left your account. Usually it comes back on its own. RBI has set outer time limits for these reversals, and compensation if banks miss them. This guide explains those limits in plain English and what to do if your money does not come back. It covers failed transactions, not payments you made to a scammer; for those, see our UPI scams guide.
The RBI rule in one paragraph
RBI's circular on harmonisation of turnaround time and customer compensation for failed transactions (20 September 2019, in force since 15 October 2019) sets a deadline for reversing each type of failed transaction. "T" is the day of the transaction. If the bank misses the deadline, it must pay ₹100 for each day of delay. RBI says this compensation should be credited on the bank's own initiative, without waiting for you to complain or claim it.
Why payments fail even when money is debited
A digital payment passes through several systems: your app, your bank, the payment network and the receiving bank or merchant. If one link breaks partway, your bank may debit you before the other side confirms. RBI's circular lists causes not attributable to the customer, such as disrupted communication links, session timeouts, cash not available in an ATM and non-credit to the beneficiary's account.
"Pending" is not the same as "failed"
A pending status means the systems have not yet agreed on what happened. Many pending payments complete or reverse by themselves within a short time. Our advice: check the transaction history in your UPI app and your bank statement after some time, and ask the person or shop whether they received the money, before you do anything else. Paying again while a payment is pending can leave you paying twice if the first one goes through.
Deadlines by payment type
- UPI transfer to a person (your account debited, theirs not credited): reversal by T+1 day; ₹100 a day after that.
- UPI payment to a merchant (debited, but the merchant did not get confirmation): auto-reversal within T+5 days; ₹100 a day after that.
- IMPS (debited, beneficiary not credited): reversal by T+1 day; ₹100 a day after that.
- ATM or micro-ATM (debited, but no cash came out): reversal within T+5 days; ₹100 a day after that.
- Card payment at a shop (PoS) (debited, but no charge slip or confirmation): reversal within T+5 days; ₹100 a day after that.
- Card-to-card transfer (debited, beneficiary card not credited): reversal by T+1 day; ₹100 a day after that.
- Wallets and prepaid instruments: if the payment ran over UPI, cards or IMPS, that system's deadline applies; for payments within the same wallet system, reversal by T+1 day with ₹100 a day after that.
These are the outer limits. RBI expects banks to resolve failures faster where they can. The circular also covers other cases, such as NACH mandates; check the full table if your case is different.
Example
Example only: you pay a shop ₹2,000 by UPI on the 1st. The app shows failed, but ₹2,000 is debited and the shop did not receive it. As a UPI merchant payment, the reversal deadline is T+5, the 6th. If the money only comes back on the 9th, that is three days late, so the rule says ₹300 compensation should be credited to you.
What to do, step by step
- Do not pay again straight away to the same person or shop unless they confirm they did not receive it. Ask them to check their account or terminal.
- Save the evidence: a screenshot showing the failed or pending status, the transaction or UPI reference number (UTR), date, time and amount, and the debit in your bank statement.
- Wait for the deadline. Most failed transactions reverse automatically, often within minutes or hours.
- Raise a complaint if the deadline passes: use the help or dispute option in your UPI app, and contact your bank's customer care with the reference number. Note the complaint number.
- Check for compensation: if the reversal came late, look for the ₹100 a day credit. If it is missing, ask your bank for it, quoting the RBI circular.
If your bank does not resolve it
The circular says customers who do not get redress within the deadline can complain under the Reserve Bank Integrated Ombudsman Scheme. You can file online on RBI's Complaint Management System. Complain to your bank first and keep its reply or complaint number, as the Ombudsman route expects that.
If the problem is with a shop or service rather than the payment itself, for example a merchant who received the money but did not deliver, that is a consumer complaint. Our National Consumer Helpline guide explains that route.
Common questions
Does the deadline count weekends and holidays? The circular counts in days from the transaction date (T). For your exact case, ask your bank how it counts the days, and keep your dates written down.
What about failed online card payments on shopping sites? The RBI table has a separate row for card-not-present (e-commerce) transactions. Check that row in the circular for your case, and raise the issue with both the merchant and your card issuer, keeping the order and transaction references.
The money came back, but late. Do I have to ask for compensation? RBI says compensation should be credited without waiting for a complaint. If you do not see it, ask your bank and quote the circular.
Who reverses the money, my bank or theirs? For UPI and IMPS transfers that did not reach the beneficiary, the table places the reversal on the beneficiary bank. You still complain to your own bank or app, which handles the dispute for you.
Failed payment or scam?
A real failed transaction never needs you to share your UPI PIN, an OTP or install a screen-sharing app. Anyone who calls offering to "reverse" a failed payment and asks for these is a scammer. Use only your bank's official app, website or the number printed on your card. If you have been tricked into paying, call 1930 or report at cybercrime.gov.in as soon as possible.
Quick checklist
- Screenshot and reference number saved.
- I know my deadline: T+1 for UPI or IMPS transfers, T+5 for UPI merchant, card-at-shop and ATM failures.
- Complaint raised with the app and bank once the deadline passed.
- Checked for ₹100-a-day compensation if the refund was late.
- Escalated to the RBI Ombudsman if the bank did not resolve it.
Sources
Official material checked on 17 October 2026. Deadlines are summarised from the RBI table; read the circular for the exact wording and cases not listed here.
