The digital payment procedure is quite easy, as it can be finished in just a few steps. Moreover, it also reduces resistance and shortens the time required for a transaction to be processed. Furthermore, it supports the “Peer to Peer” transaction feature. It allows payment according to the user’s convenience.
How does UPI work?
The Unified Payments Interface (UPI) functions by integrating various bank accounts into a unified mobile app, and transactions can be made from any bank that is part of the system. The integration, which is the base of UPI transactions, brings various banking functions to one platform. It makes transactions easier, and the transfer of funds and processing of payments for merchants becomes very convenient.
When you use UPI to send money to someone, you don’t need to add him as a beneficiary. You can transfer funds to a person right away by simply using their account number and IFSC code, even if they do not use UPI.
People who use UPI can send money by using an app. Many mobile apps support UPI for sending and receiving money. You should choose the app of your convenience and use the ‘Pay’ or ‘Send’ option, only need to enter the recipient’s details, like a UPI ID or mobile number.
You should also fill in the box provided for the amount with the accurate amount you want to send, then select the bank account or wallet for debiting the money. Finally, they enter the UPI pin to confirm the transfer & the transaction request is sent to their selected PSP.
Also Read: How to Increase the UPI Payment Limit?
How to cancel a UPI payment?
The direct credit of money transfers using UPI into the recipient’s bank account makes it difficult to reverse such transactions. The reversal of UPI payments by banks is prohibited. Reversing the funds, however, requires that the applicant provide their consent for such a transfer via their bank. It is only possible to cancel your UPI transactions if the process of the transaction is pending or has failed. Once a transaction is completed, it is not possible to cancel.
If the recipient is a member of your family or a friend, getting the money back should not be too difficult. However, if you make a mistake and are unable to get your money back, the following steps need to be taken:
- Immediately get in touch with the person you sent money to by mistake. If you accidentally sent money to the wrong person using UPI, the first step is to contact them right away and ask for a refund. If the person cooperates, they can reverse the transaction on their end.
- Contact your bank or UPI app provider: In case the receiver does not cooperate and refuses to refund the money, contact your bank or UPI app service provider and inform them about the issue for which you want their help. They will ask for your Unique Transaction Reference (UTR) number, date of transaction, and the amount of the transaction.
- Request the receiver: If the person who has received the money due to your mistake has his account in the same bank from which you made the transaction, your bank can request the receiver to return the money.
- The bank works as a facilitator. But if, by mistake, you have sent the money to a person who has an account in some other bank or in any other financial institution, your bank can only help you as a facilitator in the process of cancelling the transaction. Your bank can only provide you with information about the bank of the receiver.
- Visit the branch: When you contact the receiver’s branch for assistance and speak with the manager, the bank staff takes action and initiates the process for the cancellation of the transaction.
- Receiver’s consent is important: If you send money to the wrong person and request a bank cancellation of the transaction, in that case, the receiver’s consent is mandatory for the reversal of the money.
- Stay in touch with your bank or UPI app provider. The UPI auto-reversal process may take a few days to finish. During this time, make sure to follow up with your bank or UPI app provider to know the status of your refund.
- Mostly, it takes 7 days. In most cases, within seven days, the money is refunded and deposited into your account. However, if the receiver does not respond to your request or the bank is unable to retrieve the funds, you can submit a complaint through the NPCI portal.
- Financial Ombudsman: Even after following the above processes, if the grievance stays unsettled after 30 days, you can move towards the Financial Ombudsman and heighten the issue.
Reasons for failed UPI transactions.
The UPI payment can be cancelled only when it becomes very necessary; as you know, it is a very difficult task to cancel the UPI payment and get a refund. UPI transactions can be unsuccessful for many reasons. Here are some common reasons:
- Incorrect PIN: If you have mistakenly entered the incorrect UPI Personal Identification Number (PIN), your transaction will fail. It is one of the most common causes of failed UPI transactions. A correct UPI PIN is essential for the authentication purpose and processing of transactions, and if you enter the wrong PIN multiple times, the transaction will fail and you will not be able to complete your transaction.
- Daily UPI limit exceeded: Generally, all the banks set a daily limit for the UPI payment. If you exceed that limit, the transaction will not be successful.
- Incorrect recipient details: When you make any transaction for sending money, you need the receiver’s accurate UPI ID linked with their UPI account or their mobile number. However, the transaction will not be successful if any of these details are incorrect.
- Insufficient bank balance: UPI transactions cannot be completed if the sender doesn’t have sufficient funds in his account to complete the transaction. The transaction can only be successful if the sender has that much balance, which is required to complete the transaction.
- Technical Issues/Network Issues: Sometimes, the transaction fails due to technical errors or network connectivity issues.
- Transaction Timeout: Some UPI transactions have a time limit, and you are expected to complete the transaction within that limited time. If this time limit is exceeded, the transaction may fail due to a timeout.
Final Words.
UPI payments are very simple and convenient to use, but you should always be careful while using them and avoid making mistakes. However, once you achieve success in using the facility, you will find it the most convenient method of transaction. But, even then, if you make any mistake, it is important to act immediately. You should contact your bank or the UPI platform’s customer support. Be patient and persistent in following up on your complaint, and keep a record of all communications for reference. By staying alert and proactive, you can increase your chances of getting your money back and avoid future mistakes.
FAQs.
Yes, UPI transactions are generally safe. They use a two-factor authentication mechanism that requires you to enter your UPI PIN and PIN or OTP from your mobile. However, it would help if you were wary of phishing schemes and malware attacks.
Yes, a UPI transaction can be cancelled if it was made by mistake or fraud. You can request a cancellation from your bank or the UPI payment app you used.
Yes, your bank, the UPI payment app you used, and the government can track UPI transactions because UPI transactions are connected to your bank account and mobile number.
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