Have you sent money to wrong UPI ID via PhonePe, Paytm, GPay? A step-by-step guide to recovering funds

As digital payments continue to flourish in India, mistakes such as sending money to the wrong UPI ID are becoming more common. But don’t worry. There are ways to correct these errors and potentially get your money back. Here is a step-by-step guide to help you recover funds from unintentional UPI transactions.

If you have transferred the money to a wrong UPI ID, the first thing to do is to contact the recipient immediately. If you can’t reach the recipient or the person doesn’t return, here are other ways:

Steps to follow after a bad UPI transfer

1. Report the problem to the payment service provider

Start by contacting the payment service provider (such as Google Pay, Paytm, PhonePe, etc.) through which the transaction was made. You can raise a dispute and explain the situation, providing transaction details such as UPI transaction ID, virtual payment address and date of transfer.

2. File a complaint on the NPCI portal

The National Payments Corporation of India (NPCI) has a “dispute resolution mechanism” to address grievances related to UPI. To file a complaint:

Visit the NPCI website and navigate to the “Dispute Resolution Mechanism” section.

Fill the online form with details like UPI transaction ID, amount transferred, transaction date, your virtual payment address, email ID and mobile number.

Upload a copy of your bank statement showing the transaction deduction.

Select “Improperly transferred to another account” as the reason for the complaint.

3. Escalation Process for Dispute Resolution

According to the NPCI guidelines, the complaint process has several levels of escalation:

Step 1: File a complaint with the third-party application provider (TPAP), such as the payment application used.

Step 2: If the issue is not resolved, contact the payment service provider (PSP) bank associated with the UPI app.

Step 3: If the problem persists, contact the bank where your account is managed.

Step 4: The final step is to contact NPCI if the above options do not resolve the issue.

4. Contact the RBI Ombudsman for Digital Transactions

If your complaint remains unresolved after a month or you are not satisfied with the response, you can escalate the issue to the Reserve.

Bank of India (RBI) Ombudsman for Digital Transactions.

The complaint must be filed in the jurisdiction where the branch or office of the payment system participant is located, or where your registered address is located.

5. Stay up to date

Throughout the process, keep an eye on the status of your claim via the bank’s payment app or customer service. Timely updates can help you act quickly if further escalation is necessary.

How to avoid such mistakes in the future?

Check the recipient details: Make sure the UPI ID or mobile number is correct before confirming a payment.

Use payment limits and confirmations: Set payment limits to avoid accidental large transfers and enable confirmation prompts for each transaction.

Following these steps can significantly improve your chances of recovering funds lost due to unintentional UPI transfers.