How to Reverse Wrong UPI Transactions?

Unified Payments Interface (UPI) has revolutionised transactions in our daily life. It has become possible to carry out transactions hassle-free and faster. But since it’s all on our fingertips, possibilities of going a transaction wrong or a failed transaction are also there. In this scenario, the sender requests the recipient to reverse the UPI transactions. This thereby makes it challenging to retrieve the amount because of limited information. 

So, continue reading this blog to learn how to reverse wrong UPI transactions, how to prevent such mistakes, and so on. 

What Is a Wrong UPI Transaction?

A wrong UPI transaction takes place once the wrong details are entered during transaction processing. It is always recommended to check the account number you have entered before initiating a fund transfer. Post digitisation, there are multiple payment options for transferring and receiving money. These channels might be safe and secure across the globe, but human errors can happen anytime.

As per the guidelines of RBI, it is the sole responsibility of the beneficiary to enter the correct details to avoid a wrong UPI transaction. If you have sent money to any wrong UPI ID, you can complain to the payment system provider. 

UPI Auto Reversal

UPI is an online payment platform where users can link multiple bank accounts and engage in fund transfers. The National Payment Corporation of India (NPCI) has developed the UPI app to allow users to make transactions without providing an IFSC code or account number every time. Thus, it becomes possible for users to make payments using a virtual payment address, QR code, or mobile number. 

However, users sometimes end up providing incorrect information or contact numbers. This thereby leads to transferring money to the wrong UPI ID. Looking into this, NPCI has introduced a 'UPI Auto-Reversal' system to eradicate this problem. 

This scenario is however approved only in cases when the beneficiary bank returns the money with auto-update. Alongside this, a circular is also provided mentioning the procedure that every bank must follow for returning the money sent through UPI. 

How to Reverse Wrong UPI Transaction?

If you have sent your money to the wrong account, the first and foremost question that comes to your mind is, how to get the money back? In this scenario, call the respective bank's customer care number and provide them with all the necessary information about the transaction. 

Moreover, you can also leave a mail to the customer care team with incorrect transfer account details. Apart from this, you can also visit your home branch, speak with the manager, and submit written proof of the incorrect transfer taking place. 

Scenarios for Wrong UPI Transactions

The use of UPI transactions has increased rapidly among users and thus more wrong/ fail transaction scenarios take place. There are several reasons behind wrong UPI transactions ranging from technical glitches to providing improper beneficiary details. 

Here is a complete guide that might cause failure of UPI transactions:

• Exceeded Daily UPI Limit

There is a daily payment limit set by the banks for carrying out UPI transactions. However, if your transaction limit appears more than this set limit, the transaction will fail 

• Incorrect PIN

The majority of UPI transactions fail because of providing an incorrect UPI PIN. For authentication of transactions and authorization, the UPI PIN is mandatory. Hence, entering a UPI PIN incorrectly several times will cause the failure of your transaction

• Receiver’s Incorrect Details 

For UPI transactions to take place, it is important to provide accurate data of the UPI ID of the receiver along with their mobile number. If any of these details are inaccurate, the transaction will fail or can go wrong.

• Transaction Timeout

Certain UPI transactions follow a time constraint. If this time limit is exceeded, your transaction will fail

• Insufficient Bank Balance

There should be sufficient balance in the sender's account for carrying out the transfer process smoothly. If there are insufficient funds, your transaction will fail

• Technical Glitches

Any issues in network connectivity or technical errors might also fail UPI transactions. This can take place in the respective UPI platform, the device of the user, or even in the bank's server

Challenges in Reversing UPI Transactions

In recent years, UPI payments have revolutionised the process of handling financial transactions for Indians. People have started preferring UPI transactions starting from grocery shopping to payment of bills online. However, amidst this convenience, UPI users face challenges in reversing wrong UPI transactions. 

The National Corporation of India has also started noting this issue. Once you send money to any incorrect number, getting it back on time seems to be a daunting task. If the receiver is not cooperative, make sure to contact the bank as soon as possible. Thus, UPI users become extra cautious while initiating UPI transactions. 

Entering a single wrong digit in the contact number of the recipient will result in transferring the amount to the wrong person. Hence, it is advised to double-check all necessary details before transferring any amount. 

If a wrong transaction takes place, it is the sole responsibility of the sender to contact the recipient and request for reversal. This scenario at times turns out quite challenging as there can be chances of fraud or scams. 

Hence, to avoid this, stay proactive and vigilant. By keeping oneself informed and being extra cautious, it is possible to mitigate the risks associated with UPI transactions. This will enable users to avail a smooth digital banking experience. 

Steps to Reverse a Wrong UPI Transaction

In this digital era, the introduction of the Unified Payments Interface (UPI) system has made the transaction process more convenient. However, the risks of making wrong UPI transactions have also increased. If you ever caught yourself in this situation, follow the below steps to reverse the payment made to the wrong recipient. 

1. Act Quickly

This is the first and foremost step to follow once you realise your money is sent to the wrong UPI ID. The faster you will respond, the more will be the chances of getting back your payments. For better results, solve the issue within the first 24 hours

2. Contact the Recipient

Contacting the recipient is another important step. If you have the contact details of the recipient, reach out immediately to them to explain the situation further. You may ask them politely to return the money. At the same time, provide them with all necessary transaction details including the total amount sent and the UPI transaction ID

3. Contact the Bank

If you fail to contact the recipient, take the next step of contacting your bank. Inform the bank about the transaction mistake you made and provide them with all the necessary details including the date of UPI, time, UPI transaction ID, mobile number, and others. You will get proper guidance from the bank and your transaction amount will reverse

4. Use the UPI App

Among several UPI apps, some of them have features for reporting incorrect transactions. Login into the UPI app and search for reporting the problem. Provide all necessary information and you will get guidance from the app regarding raising a dispute

5. File a Complaint with the NPCI

If you find it difficult to resolve the issue with your bank or the recipient, file a complaint with the NPCI. NPCI looks after the operations of the UPI system and has also established several mechanisms for resolving disputes. If needed, you can also visit their official website and follow the steps for lodging a complaint

6. Legal Recourse

This is the final step to follow if all your attempts fail. Carry out a consultation with any legal experts for a proper understanding of the steps you should undertake to recover your funds from wrong UPI transaction

Tips to Prevent Incorrect Money Transfers 

You can avoid incorrect money transfers by following some essential precautions. These will not only help you to stay away from fraud but will also keep your bank information safe and secured in this digital world.

Here are some tips to follow to prevent incorrect money transfers:

• Beware of Getting Engaged with Fraudsters

To prevent involvement in incorrect money transfers, avoid getting engaged with UPI fraud. The bank will never approach you to discuss any sensitive information. Never share your PAN and any other sensitive information. Also, you can check for the authenticity of unknown numbers through various apps such as Truecaller

• Note the SPAM Warnings on your UPI App

Receiving a request from any unknown account provides a spam warning from UPI apps such as PhonePe and Google Pay. Thus, make sure to note such warnings. If you point out any suspicious account, make sure to report it

• Be Cautious During Accepting/Requesting Requests

Every UPI app such as Google Pay, and PhonePe has a 'request money' feature. Buyers wishing to purchase any product through advertisement on online platforms engage with the seller on call. They end up transferring money through the "request money" option in the UPI app. Thus, a simple click can lead to the transfer of money carelessly

• Follow Security Practices to Avoid UPI Fraud

Do not reveal your PIN to any strangers under any circumstances. Thus, make sure to protect your app through installed recognition software. This also prevents hackers from misusing your account. Alongside, you must install anti-virus software to check malicious software regularly

• Check Authenticity

Email is one of the easiest ways that enable you to download malware and retrieve all your necessary information. Thus, make sure to always scan your emails to avoid UPI fraud further.

• Beware of Malicious Apps

Downloading and installing any fake apps allows mobile phone users to reveal sensitive data and provide necessary permission. Thus, fraudsters can easily withdraw money from the user’s bank account. 

There are many fake apps such as BHIM Payment-UPI Guide, BHIM Banking Guide, and many others that have been reported to have stolen customer's data in the name of popular banking services. 

Final Words

In this digital world, sending and receiving money through UPI platforms is quite common. At times, however, the payment transfers to the wrong UPI address. This thereby causes panic among UPI users. Thus, following the RBI guidelines, you must know how to reverse the wrong UPI transaction in the next 24 to 48 hours of your transaction. Follow the above-mentioned tips to enjoy a smooth refunding process from the wrong UPI address. Just be patient and follow up on the complaint and also make sure to maintain records of your communication with the bank for further reference. 

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