UPI Limits and RulesRBI rules for failed digital payments
RBI circular DPSS.CO.PD No.629/02.01.014/2019-20 of 20 September 2019 sets one framework for what banks must do when a payment fails and for how much they owe you, effective 15 October 2019. These are its terms, read on 13 November 2026.
The terms
- T is the calendar day of the transaction, and R is the day the reversal is concluded and the money reaches the originating bank, which must credit you the same day.
- The time limit is the outer limit: banks and operators should resolve faster where they can.
- Compensation is credited to your account on its own, without waiting for a complaint or claim.
- If you do not get redress within the time limit you can complain under the RBI Integrated Ombudsman Scheme, 2021.
- Prepaid wallets and cards follow the system the payment rides on (UPI, card network, IMPS) when it goes to another issuer.
Time limits and compensation
| Incident | Reversal due | Compensation |
|---|---|---|
| UPI: money debited, beneficiary not credited (a transfer) | T + 1 | ₹100 a day |
| UPI: money debited, no confirmation at the merchant (a payment to a merchant) | T + 5 | ₹100 a day |
| IMPS: money debited, beneficiary not credited | T + 1 | ₹100 a day |
| ATM: account debited but cash not dispensed | T + 5 | ₹100 a day |
| Card to card transfer: debited, beneficiary not credited | T + 1 | ₹100 a day |
| Card at a shop (PoS): debited but no confirmation at the merchant | T + 5 | ₹100 a day |
| Card online: debited but no confirmation at the merchant’s system | T + 5 | ₹100 a day |
| Aadhaar Enabled Payment System: debited, no confirmation or not credited | T + 5 | ₹100 a day |
| Aadhaar Payment Bridge: delay in crediting the beneficiary | T + 1 | ₹100 a day |
| NACH: delay in crediting the beneficiary or reversal | T + 1 | ₹100 a day |
| Prepaid wallet or card, same issuer: not credited or no confirmation | T + 1 | ₹100 a day |
An example
A UPI transfer is debited on 1 June but the other person is not credited and the money returns on 6 June. The limit is T + 1, so five days are late: ₹500. If a merchant payment is debited on 1 June, no confirmation reaches the merchant and the money returns on 12 June, the limit is T + 5, so six days are late: ₹600.
NPCI’s dispute rules
NPCI circular OC 240 of 4 November 2026 changes dispute-handling terms between banks: "Wrong Credit Chargeback" becomes "Wrong Payment - Reversal Request", and that request and "Fraud Chargeback" are now allowed for deemed-approved transactions after the transaction closing updates. These are rules between banks and are named so you recognise them if your bank uses them.
Common questions
What counts as a failed transaction?
RBI defines it as a transaction not fully completed for a reason not attributable to the customer, such as a failure in communication links, no cash in an ATM or a session time-out. It also includes credits that could not be made for lack of full or proper information and delay in starting a reversal.
Does this cover payments to people abroad?
No. RBI says the framework covers domestic transactions, where both the sender and the beneficiary are within India.
Sources
- NPCI circular NPCI/UPI/2025-26/OC/185B, 28 August 2025, "Addendum to OC 185 A – Implementation of higher per transaction limit for specific categories in UPI" (Annexure I), read on 13 November 2026 from the PDF on npci.org.in.
- NPCI circular NPCI/UPI/OC-226A/2026-27, 3 July 2026, "Enhancement of Transaction Limit for On-Device Biometric Authentication in UPI".
- NPCI circular NPCI/UPI/OC No. 240/2026-27, 4 November 2026, "Standardization of Dispute Management Rules in URCS".
- Reserve Bank of India, DPSS.CO.PD No.629/02.01.014/2019-20, 20 September 2019, "Harmonisation of Turn Around Time (TAT) and customer compensation for failed transactions using authorised Payment Systems" (rbi.org.in), read on 13 November 2026.
Figures read on 13 November 2026 from the NPCI and RBI circulars named above. Limits and rules change by circular: check your bank or app for the limit that applies to you. This site is independent, not connected with NPCI, RBI or any bank, and gives information, not advice.