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RBI Mandates ₹100 Daily Penalty for Failed UPI Transactions
RBI mandates ₹100 daily penalties for banks that fail to reverse UPI transactions within T+1 or T+5 day deadlines.
The Reserve Bank of India established rules requiring banks to reverse failed UPI transfers within specific deadlines. Person-to-person transfers must be reversed by T+1 day, while merchant payments have a T+5 day limit. Banks must automatically credit users ₹100 for every day a refund is delayed. The RBI's 2026 scheme for these complaints came into effect on 1 July 2026.
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RBI Mandates ₹100 Daily Penalty for Failed UPI Transactions
The Reserve Bank of India (RBI) has established a strict framework for turnaround times and customer compensation regarding failed UPI transactions. For person-to-person transfers, banks are required to reverse the debited amount within T+1 day. If the bank fails to meet these deadlines, it must pay the customer a penalty of ₹100 per day of delay. These rules aim to protect millions of daily UPI users from indefinite waiting periods during technical failures.