UPI payment refunds which app handles best

UPI refunds are typically handled automatically by the National Payments Corporation of India (NPCI) and the involved banks when a transaction fails or a merchant initiates a return. The amount is reversed back to the original account. Banks are mandated to auto-reverse funds within T+1 day for fund transfers or T+5 days for merchant payments, according to guidelines (Paytm Blog, September 16, 2025).