Answer Book question

My UPI or ATM transaction failed but the money left my account. What now?

The bank must reverse it on its own, within a fixed time, and pay you ₹100 for every day of delay after that, without your having to ask. For UPI and IMPS where the receiver's account was not credited, the deadline is the next day (T+1). For ATM cash not dispensed, it is five days (T+5). For card payments at a shop that did not go through, T+5. The compensation is automatic under the RBI's 2019 framework; if it is not paid, the Ombudsman enforces it.

By Kerala Rising · ·

Short answer

The bank must reverse it on its own, within a fixed time, and pay you ₹100 for every day of delay after that, without your having to ask. For UPI and IMPS where the receiver's account was not credited, the deadline is the next day (T+1). For ATM cash not dispensed, it is five days (T+5). For card payments at a shop that did not go through, T+5. The compensation is automatic under the RBI's 2019 framework; if it is not paid, the Ombudsman enforces it.

Real life

A nurse in Ranni pays ₹6,500 by UPI at a pharmacy; the app says failed, the pharmacy does not receive it, her account is debited. Under the rule, her bank must reverse it by the next day. If it takes six days, she is owed the ₹6,500 plus ₹500.

What this means

RBI's circular on 'Harmonisation of Turn Around Time (TAT) and customer compensation for failed transactions using authorised Payment Systems' (September 2019) sets one timetable for every system. ATM: T+5 days. Card at point of sale or online: T+5. Card-to-card transfer: T+1. IMPS: T+1. UPI, beneficiary not credited: T+1; UPI at a merchant where the payment shows pending: T+5. NACH, wrong debit after you cancelled a mandate: T+1. Wallet on-us transfers: T+1.

What this means · continued

Failure to reverse within the TAT attracts ₹100 per day from the day after the TAT ends. The compensation must be paid suo motu, meaning without a complaint. The NPCI's UPI dispute system lets you raise the issue inside the app, which creates the record.

What to check

The transaction ID (UTR/RRN) and the date: T is that date Whether the status shows 'failed', 'pending' or 'success'; a 'success' with no credit at the other end is a different dispute Whether you raised it in the app or at the bank; do this even though reversal should be automatic The date of reversal, to compute the delay Whether the ₹100 a day was paid; it rarely is without a prompt

What people often miss

Chasing the shopkeeper's bank. You are your bank's customer; it is responsible to you. Also: letting a 'pending' UPI transaction sit for weeks. Raise a dispute in the app on day two.

The Kerala / NRI angle

Remittance-linked NEFT/IMPS failures for NRI transfers fall under the same framework once the money is inside India's payment system. For ATM failures at a different bank's ATM, it is still your own bank that must reverse and compensate.

An example

ATM: ₹10,000 debited, cash not dispensed, on 1 August. Reversal due by 6 August. Reversed 14 August: 8 days × ₹100 = ₹800 owed, on top of the ₹10,000.

When this may not be the right answer

If the receiver was credited (a 'success' with the wrong recipient because you typed the wrong number), there is no failed transaction; that is a recovery request to the receiving bank, and your chances depend on speed and goodwill.

What to do next

Raise the dispute in the app and with your bank on day two On reversal, check whether the daily compensation was added; if not, write and ask No resolution in 30 days: RBI Ombudsman

Related questions

Money was stolen from my account through a fraud. Will the bank refund it? The bank ignored my complaint. Who is above the bank?

Related Kerala Rising help

Loans & bank disputes

Sources and what to verify

RBI circular DPSS.CO.PD No.629/02.01.014/2019-20, 19 September 2019, Harmonisation of TAT and customer compensation · NPCI UPI dispute redressal mechanism Last checked: 22 August 2026. Rates, limits and whether you may qualify change. Confirm with the official source before you act. Ask Kerala Rising: Use only general, non-identifying facts. Do not send bank, health, legal, property, identity, account, transaction, or loan documents, screenshots, numbers, OTPs, or passwords over WhatsApp. Kerala Rising can explain public sources and questions to take to the responsible bank, office, or qualified professional. WhatsApp +1 443 595 9000 · keralarising.com

Before you act

This page is general orientation, not personal insurance, investment, medical, legal, lending, tax, employment, or professional advice. Rules, rates, deadlines, and decisions can change. Confirm the current position with the named official source and use a licensed or qualified professional where your situation requires one. Kerala Rising does not decide whether you may qualify, approve claims, or promise an outcome.