How does UPI chargeback work?

A UPI chargeback is a formal dispute initiated by the payer's bank to recover funds for an incorrect or unauthorized transaction. If a payment fails or fraud occurs, the user first raises a complaint with their UPI app or bank. If unresolved, the issue escalates to the receiver's bank. The National Payments Corporation of India (NPCI) has set rules to streamline reprocessing and manage these disputes, with NPCI's official platform intervening if banks cannot resolve the case.