Your bank balance has fallen, but the other side says the payment did
not arrive. Before counting refund days, check what the transaction
actually was: a funds transfer, or a payment recorded as a merchant
transaction.
That distinction can change the applicable reversal deadline. A shop
counter, a QR code or the word “pending” alone does not settle the
question. Keep the transaction details and ask your bank to confirm the
category if it is unclear.
Two UPI cases, two deadlines
The RBI’s
failed-transaction framework, dated 20 September 2019, effective
from 15 October 2019, covers domestic transactions with both parties in
India. A qualifying failure is an incomplete transaction for reasons not
attributable to the customer.
For UPI, its annex specifies:
- Funds transfer: your account is debited but the
beneficiary is not credited. If credit cannot be made, the beneficiary
bank must reverse it by T+1 day. - Merchant payment: your account is debited but
transaction confirmation is not received at the merchant location.
Auto-reversal is due within T+5 days.
T is the transaction’s calendar date. Each entry
provides ₹100 per day for delay beyond its respective
deadline. This is an established framework, not a newly
announced October 2026 benefit.
The RBI’s
21 May 2021 circular temporarily allowed working-day counting
prospectively until 30 September 2021. That dated relaxation should not
be used to add working days to a current example.
Put the right date beside
the debit
Consider two separate, hypothetical payments made by Leela on
18 October 2026.
She transfers ₹840 to a friend. Her account is
debited, but her friend is not credited. If this falls under the
funds-transfer entry and cannot be credited, T+1 is 19
October.
Separately, she makes a ₹3,260 merchant payment. Her
account is debited, but the shop receives no transaction confirmation.
If this meets the merchant-payment entry, T+5 is 23
October.
The two amounts do not determine the deadlines. The transaction type
and the failure do. Nor does a later complaint date replace the original
transaction date in these calculations.
These examples illustrate the dates, not a promise that either
transaction will remain unresolved until the last day.
Keep one record for
each failed attempt
Create a short note containing the amount, date and time,
transaction/reference number, recipient or merchant details, the status
shown in the app, and the corresponding bank-statement debit. Keep the
complaint acknowledgement alongside it.
If you paid again after the first attempt appeared to fail, record
both references separately. Reconcile them against the recipient’s
records and your statement; do not assume two similar debits are one
transaction.
A useful written request to the bank is:
“Please confirm the transaction category and final status for this
reference, the applicable reversal deadline, and whether any
compensation is due. Please explain how any compensation has been
calculated and to whom it is payable.”
Check the
reversal and compensation separately
The framework’s
full text requires applicable compensation without waiting for a
claim. It also distinguishes originator-side and beneficiary-side
delays. Avoid assuming that every delay pays ₹100 to the sender
automatically; ask the bank to identify the applicable provision.
A completed purchase followed by a return request is a different
situation from a failed payment. An unauthorised transaction also needs
its own prompt reporting and assessment. Do not apply these two failure
entries to every shopping refund or fraud loss.
When the reversal appears, check the separate compensation issue too.
If either remains unresolved, follow the bank’s grievance process with
your records and request a written response.
Source check: 19 October 2026. This educational article uses the
RBI circular and annex directly. Mint’s
report published on 18 October 2026 at 4:06 pm IST prompted the
topic check. Leela and both examples are original
illustrations.