How does the UPI dispute redressal mechanism work?

The UPI dispute redressal mechanism is a structured process set up by the National Payments Corporation of India (NPCI) for resolving issues like failed or incorrect transactions. This multi-layered mechanism involves the user's payment application, their bank, and NPCI as the final authority. Disputes are usually initiated through the payment app, which triggers an investigation and resolution process by the bank or payment provider. Users receive regular communication throughout the process.