Unified Payments Interface (UPI) has transformed the Indian digital payment system. It has been termed a revolutionary product in the payment ecosystem. Launched in 2016, it has emerged as one of the most popular tools in the country for carrying out digital transactions. UPI is an instant payment system developed by the National Payments Corporation of India (NPCI). It powers multiple bank accounts into a single mobile application, merging several banking features, seamless fund routing, and merchant payments into one hood.
UPI has gone a long way in making digital payments a habit, and in firmly placing India on the track toward a cashless economy. In the month of August 2022, 346 banks were live on the UPI interface, with 6.58 billion financial transactions being carried out for a total value of nearly Rs. 10.73 lakh crores. People can transfer money directly to bank accounts at any time using their smartphones. While the UPI system is safe and secure, the digital gateway often prompts errors like transactions getting stuck after the money is debited or making people vulnerable to UPI fraud.
National Payments Corporation of India (NPCI) allows money transfers between bank accounts using mobile numbers or QR codes. Users can process UPI payments through the BHIM app or other UPI service providers like GPay, PhonePe, and more. However, despite all the security features and instructions, users often ignore double-checking for the receiver's phone number or QR code and mistakenly send money to someone else's bank account.
Here are several methods through which you can raise your dispute for the unintentional transaction through UPI:
Contact customer care support -
As per Reserve Bank of India (RBI) guidelines, a user should first report the issue of an unintentional transaction with the payment service provider. One can raise the issue with the customer service department of the GPay, PhonePe, Paytm, or UPI app through which you transferred the money. You can seek help from the customer service of applications such as Paytm, Google Pay, and PhonePe, and request a refund. You can report your problem and request a refund.
File a complaint in the National Payments Corporation of India (NPCI) portal
Go to NPCI's official website npci.org.in
Click on the 'What we do' option and then tap on the UPI option underneath
Open select Dispute Redressal Mechanism
Under the complaint section, fill in all your ‘transaction details’ which include UPI transaction ID, virtual payment address, the amount transferred, date of transaction, email ID, and mobile number.
Select 'Incorrectly transferred to another account as the reason for the complaint.
Submit your complaint.
Contact the payment service provider
If the complaint is still unresolved you can escalate your complaint with the payment service provider (PSP) bank followed by the bank where the end-user customer maintains its account.
If even after following all the above processes the complaint remains unresolved, then after 30 days you (the end-user customer) can approach the Banking Ombudsman and/or the Ombudsman for Digital Complaints. According to the RBI, one can file a complaint with the Ombudsman by writing on plain paper and sending it to the concerned office of the Ombudsman by post/fax/hand delivery. A complaint form along with the scheme is also available on RBI’s website, though it is not mandatory to use that format.
As per RBI guidelines, the ombudsman for digital transactions is a senior official appointed by it to redress customer complaints against System Participants as defined in the Scheme for deficiency in certain services covered under the grounds of complaint specified under Clause 8 of the Scheme.
Under this, complainants can file their queries after the payment system or PSP banks fail to resolve the issue related to payment transactions through UPI, Bharat QR code, and others. They can site grounds such as failure to credit funds to the beneficiaries account or failure to return the amount within a reasonable time.
The Payment Vision 2025 of RBI observes providing every user with safe, secure, fast, convenient, accessible, and affordable e-payment options under its core theme of 4Es- E-payments for Everyone, Everywhere, Every time. India's Digital Payment Revolution is a case study for the world as it strides forward toward economic development and financial stability. With specific initiatives and goals laid down, the RBI has built a dynamic ecosystem, based on technology and innovation, and its emphasis on customer-centricity.