For a moment travel back in time and remember how we used to transfer money six years ago, reaching early to the banks to avoid long queues, long waiting period and filling so many forms, depositing cash in bank and wondering what to opt for whether it is IMPS/NEFT/RTGS to complete the transfer and this list goes on and on. But now you just need a smart phone to transfer money through UPI and this will take only a few seconds.
What is an UPI?
Unified Payment Interface (UPI) links multiple bank account in a single smartphone app and make fund transfers without seeking for IFSC code or account number. You need only a Virtual Payment Address (VPA) to transact. UPI has been developed by the National Payments Corporation of India (NPCI) and is regulated by the RBI.Right now UPI is the most preferred mode of payment in India.Users can process UPI payments through BHIM app or other UPI service providers like GPay, PhonePe, whatsapp pay etc… You need a smartphone, bank account, active mobile number linked to your bank account and internet connection to transfer money through a mobile number or by scanning QR code.
Participants of UPI are:
- Payer ASP( Application Service Provider) – person who pays money to the payee
- Payee ASP( Application Service Provider) – Beneficiary who receives the money
- Beneficiary Bank – bank which receives the payment i.e., Payee’s bank
- Remittance Bank – bank which makes the payment i.e.., Payer bank
- NPCI(National Payments Corporation of India)
- Merchants – Who provides this service to users
- Bank account Holder – Person who holds the account from Both sides
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As per as NPCI stats around 12.98 lakh crores has been transferred through UPI in Jan 2023 and around 8000 transactions took place every minute. These numbers indicate how deep the UPI penetration is in India. Right from tea stall to toll plazas you will find scan code everywhere which facilitates an easy, fast and smooth payment mechanism. Ad-mist of all this hype have you ever transferred money to the wrong UPI number or scanned a fraudulent QR code and Struggling how to recover your money ! Once the transaction is processed you cannot stop the money transfer. To Protect the interests of the UPI users, RBI has set some guidelines through which we can raise complaints about unintentional transactions.
Ways to recover Money Transferred to a Wrong UPI Address
If you have transferred money to an incorrect bank account, you can ask your for a refund as per RBI guideline issued in October 2010. As per RBI guidelines, in case of wrong money transfer you can get back your money in 24 – 48 hrs. If the payee and payer banks are the same, then it will take less time to refund. But, if the two bank accounts are from the two different banks, then the money refund will take more time.
1) Contact UPI app support
According to RBI (Reserve Bank of India) guidelines, a user should first report the issue of an unintentional transaction with the payment service provider. Take the screenshot of the incorrect transaction and raise the issue in the customer care support of GPay, PhonePe, Paytm or the UPI app through which you transferred the money. You can report your issue and request a refund.
2) File complaint in NPCI portal
If you are unsatisfied with the UPI customer service then you can file a complaint in the official website of the NPCI portal.
- Visit NPCI official website npci.org.in
- Go to “What we do tab” then opt for “UPI” and select “Dispute Redressal Mechanism”
- Under the complaint section, fill out the Transaction details i.e., the nature of transaction and ‘Incorrectly transferred to another account’ as the issue, UPI transaction ID, Bank name, virtual payment address, amount transferred, date of transaction, email ID, and mobile number.
- You should also upload the bank statement showing the amount deducted from the account for the transaction and Submit the complaint.
3) Contact bank
If the complaint still remains unresolved you can escalate to payment service provider (PSP) bank followed by the bank (where the end-user customer maintains its account) on the PSP app/ TPAP app.
4) Approach Banking Ombudsman of RBI
Even after 30 days, if the complaint remains unresolved after following all the above mentioned procedures, you can approach the Banking Ombudsman and / or the Ombudsman for Digital Complaints.
- According to RBI, one can file a complaint with the Ombudsman by writing on a plain paper and sending it to the concerned office of the Ombudsman by post/fax/hand delivery.
- You can lodge your complaint with the Banking Ombudsman of RBI by filling the online complaint form with bank details against whom you wish to file a complaint, phone numbers, bank account details, etc. The officer responsible for handling customer complaints stipulated under Clause 8 of the scheme for insufficiency in certain services will resolve the issue.
This article should not be construed as investment advice, please consult your Investment Adviser before making any investment decision.
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