How to Recover Money Transferred to a Wrong UPI Address?

In the digital age, transferring funds via UPI (Unified Payments Interface) has become one of the most preferred payment methods amongst people. The ease, comfort, and swiftness of UPI make even complex transactions seamless. However, besides having a user-friendly interface, there are times when users face a decline in their transactions or transfer funds to the wrong UPI address. Situations like these may cause panic and even leave the user bearing hefty financial losses.

Fortunately, UPI prioritises user safety and provides helpful ways to retrieve money lost by entering the wrong UPI ID. Depending on the given circumstance, one may opt for the most feasible way to recover money and put an end to the distressing situation. 

In this article, the guide will discuss all these measures to recover money transferred to the wrong UPI address. But, before delving into the recovery methods, let us understand UPI in detail.

What is UPI?

UPI is a payment facilitation platform that links multiple bank accounts of a user in a single UPI app. It is developed by NPCI (National Payment Corporation of India) and allows fund transfers without needing an IFSC code or account number. Users can easily pay their beneficiaries using a VPA (Virtual Payment Address), mobile number, or QR code.

To make an online payment via UPI apps such as Paytm , you only need a smartphone, mobile number-linked bank account, and stable internet connection. 

Since the use of UPI has increased tremendously, you must have come across transaction failure scenarios. From technical glitches to missing beneficiary details, there can be multiple reasons why you may face a decline or monetary loss in your transaction. UPI provides alternate methods to recover your lost money and report transaction errors, which this guide will uncover in later sections. 

Participants in a UPI Transaction

A successful UPI transaction is the result of the active participation of its participants, namely:

• Payer Application Service Provider (ASP) – A payer ASP is a person who transfers money to the payee. 
• Payee Application Service Provider (ASP) – A payee ASP is a person who receives the money sent by the payer.
• Beneficiary Bank – It is the payee’s bank that receives the payment.
• Remittance Bank – It is the payer’s bank that debits the payment.
• National Payment Corporation of India – NPCI is the operator and regulator of the entire UPI system. 
• Merchants – A person who provides service to the users.
• Bank account holder – A bank account holder is a person that holds the account from both sides. He/she can receive and make payments.

Possible Methods to Recover Money Transferred to a Wrong UPI Address

It is common to transfer money by entering the wrong UPI address. However, you must exercise the rights given to you to get your money back. As per RBI (Reserve Bank of India) guidelines, in case of a wrong transfer of funds via UPI, the affected party should initiate a complaint with the appropriate payment systems, such as Paytm. 

1. Contact the Receiver 

The easiest and most feasible way to recover your money sent to the wrong UPI ID is to contact the person who received the amount. You must try contacting the receiver as soon as possible to enquire about the money received in his/her account. Try contacting him/her using his/her UPI ID or phone number and politely request to refund the amount received by mistake.

2. Customer Care Support of the UPI App

As per RBI guidelines, you must first report the issue of the wrong transaction to the customer care support team of your payment service provider. Submit the relevant proof of the wrong transfer, like a screenshot of payment, and raise the issue to the customer care team of the UPI app that you are using. While reporting the issue, you can request a refund within 24 to 48 hours of the report. If the payer and payee bank is the same, then you will get your refund before the stipulated time. 

3. Report the Issue on NPCI Portal

If you have reported your issue with the UPI app’s customer support team but are still unsatisfied, then you can officially file a complaint on the NPCI portal. Follow the below steps to proceed:

• Visit the official NPCI website (https://www.npci.org.in/)
• Locate the “What we do” tab and then tap “UPI”. From the displayed options, select “Dispute Redressal Mechanism”
• On scrolling, locate “Complaint Section” and fill in all the transaction details like the nature of the transaction, bank name, UPI ID, e-mail ID, and phone number, and state the issue as “Incorrectly transferred to wrong UPI address.” 
• You must also attach valid proof of transaction, like the bank statement showing that the amount is deducted from your account
• Submit your complaint and wait for the authorities to contact you

4. Get Support from Your Bank 

If you can’t contact the receiver in the first step, then you must try contacting your bank for further assistance. You can contact the bank’s customer care helpline or visit the nearest branch with all the proof of transaction. Once your bank gets all the details of the wrong transaction, it will initiate the chargeback process to get your refund. However, you must also remember that the chargeback process can be extended to 45 days as it depends on the accuracy of the submitted proof and other transaction details.

Conclusion

In digital times, sending and receiving money on UPI is a common affair. But sometimes, the payment may get transferred to the wrong UPI address, which can cause panic and stress. With the given RBI guidelines, you can easily retrieve money within 24 to 48 hours. You can follow all the recovery methods discussed above, like contacting the receiver or respective bank, customer care department, and NPCI. After making use of one or all the recovery methods, you will surely get your money refunded from the wrong UPI address.