Digital payments have become the backbone of daily transactions in India, thanks to the rise of UPI (Unified Payments Interface). Whether it’s buying groceries, paying rent, or transferring funds to family, UPI has simplified money movement with just a tap on a mobile screen. But what happens when a small mistake—like selecting the wrong contact or entering an incorrect UPI ID—results in money being transferred to the wrong account?
It’s a nightmare no one wants to face, but it happens more often than one might think. The good news? There are ways to file a complaint and possibly recover your hard-earned money.
In this guide, we’ll explore what immediate steps you should take, where you can lodge your complaint, and what your rights are under the current RBI framework.
Understanding How UPI Transfers Work
Before diving into solutions, it’s important to understand how UPI transactions function. When you make a UPI payment, it is typically instantaneous and irreversible. Unlike NEFT or RTGS where banks have a little more control, UPI sends funds directly from one bank account to another via a UPI ID or mobile number linked to a bank.
Once the transaction is complete, reversing it becomes challenging unless the receiver agrees or you escalate the issue through official channels.
Common Scenarios Leading to Wrong UPI Transfers
- Entering an Incorrect UPI ID: You typed in the wrong UPI address.
- Wrong Mobile Number: You selected a contact whose mobile number is linked to a different person’s bank account.
- UPI App Glitches: Some users have reported app bugs that swapped or mismatched contact details.
- Scams or Fraudulent Links: You thought you were paying a legitimate party, but it was a scammer.
What to Do Immediately After Realizing the Error
Timing is everything. The sooner you act, the better your chances are of getting your money back. Here’s what you should do as soon as you discover the mistake:
1. Note Down Transaction Details
Write down or take a screenshot of:
- Transaction ID (UTR number)
- Date and time of transaction
- Amount transferred
- UPI ID or mobile number to which the money was sent
This information is crucial when raising a dispute.
2. Inform Your UPI App Provider
Most people use UPI through apps like Google Pay, PhonePe, Paytm, BHIM, etc. These apps have built-in complaint systems.
- Google Pay: Go to Help & Support → Select the transaction → Tap “Dispute this transaction”
- PhonePe: Visit Help Section → Select the specific payment → Click “Report a Problem”
- Paytm: Go to ‘24×7 Help’ → Tap on UPI transaction → Select issue
- BHIM App: Tap on the transaction → Select “Raise Concern”
Raising a complaint within the app is the fastest first step and often leads to resolution if the money was wrongly sent due to a technical glitch or app failure.
Reporting to Your Bank Directly
If the UPI app fails to help or if the receiver does not respond, your next line of action should be your bank. Since UPI transactions are ultimately processed by banks, they are obligated to help under RBI’s guidelines.
Steps to Follow:
- Call the bank’s customer care and lodge a complaint.
- Visit the nearest branch with a printed screenshot of the transaction.
- Submit a written application describing the issue and attach:
- Your bank statement showing the transaction
- The receiver’s UPI ID or mobile number
- UPI reference number (UTR)
- Time and date of the transfer
Banks often have a grievance redressal officer who can escalate your complaint further. Make sure to ask for the complaint reference number.
Contacting the Receiver (If Possible)
Sometimes the receiver’s name appears during the transaction. If it’s a known person, you can reach out and request them to send the money back. If it’s a stranger, and they refuse, escalate the issue further.
Keep all communications polite and documented. Sending aggressive messages can be used against you later.
Escalating Through the NPCI (National Payments Corporation of India)
If your bank doesn’t resolve the issue within 30 days, you can escalate the matter to NPCI.
How to File a Complaint with NPCI:
- Visit https://www.npci.org.in/what-we-do/upi/dispute-redressal-mechanism
- Fill in the complaint form with:
- Bank name
- Transaction date
- UPI ID or mobile number
- Transaction reference/UTR number
- Upload supporting documents (like screenshots, complaint reference from bank)
NPCI acts as a third-party arbitrator and investigates complaints as per their UPI procedural guidelines.
Filing a Complaint With the RBI’s Ombudsman
If neither your bank nor NPCI resolves your issue, you have the right to escalate the matter to the Banking Ombudsman, a department run by the Reserve Bank of India (RBI).
How to Complain to RBI:
- Go to https://cms.rbi.org.in
- Select “File a Complaint”
- Choose “Digital Transactions” as the complaint type
- Enter all transaction details and upload proof
- Wait for acknowledgement and updates
RBI’s ombudsman system is powerful—it ensures banks are held accountable and can issue directives to refund money if the issue is found valid.
Police Complaint in Case of Fraud or Scam
If you’ve been tricked into sending money—say, someone posed as a courier agent, electricity board, or relative—you should immediately file a cybercrime report.
How to Report:
- Visit https://cybercrime.gov.in
- Lodge an FIR online under “Financial Fraud”
- You can also visit the local Cyber Cell in your city with all evidence
Cybercrime units have direct liaisons with banks and can freeze suspicious accounts quickly.
Rights You Should Know About
The RBI’s circular on electronic transactions ensures that users are not liable for unauthorized transfers if the fault lies with the bank or payment service provider. However, if you made a mistake—like entering the wrong UPI ID—the bank is not obligated to reverse the payment unless the receiver agrees.
Still, RBI guidelines state that banks must assist in dispute resolution and help customers recover funds through proper grievance redressal mechanisms.
Tips to Avoid Future Mistakes
- Double-Check Before Sending: Confirm the UPI ID and name before hitting “Send.”
- Send Re 1 First: When paying a new person, try sending Rs.1 first to verify.
- Use QR Codes: They reduce the chances of human error.
- Avoid Copy-Paste UPI IDs: Typing directly is safer if you’re attentive.
- Enable Transaction Notifications: So you know the moment a payment is made.
- Keep Your App Updated: Bug fixes often improve transaction safety.
- Avoid Using Public Wi-Fi: When making financial transactions.
Legal Recourse and Final Hopes
In rare cases where all other channels fail, you can:
- File a consumer court complaint
- Hire a legal advisor to issue a legal notice to the recipient
Most importantly, keep a trail of all complaints filed, emails sent, calls made, and references received. Persistence often plays a key role in getting a favorable outcome.
