Failed UPI, ATM or Card Payment: How You Get ₹100 a Day for Late Refunds

Sometimes a UPI, ATM or card payment fails but your money is cut. Your bank must return it within a set time. If it's late, you get ₹100 for each extra day. That's according to Livemint's report on the RBI rules.

You don't normally have to ask for this penalty. Banks should pay it on their own. Still, check your statement and raise a complaint early if your refund is missing.

Key takeaways

• A failed payment that debits your account must be reversed within a fixed number of days.
• If the bank is late, it owes you ₹100 for every extra day.
• The penalty is flat. It's the same for a ₹200 payment or a ₹20,000 one.
• Complain to your bank first. If that fails, you can go to the RBI ombudsman.

How the failed payment refund rule works

RBI has a rule called turnaround time, or TAT. It's the longest time a bank can take to fix a failed payment. The clock starts when the payment fails. If the bank misses the deadline, it owes you money on top of your refund.

The deadlines differ by payment type. A failed UPI payment is usually due back in one working day. ATM and card failures usually get five working days. Your bank's website lists its exact timelines.

This happens when your account is debited but the other side never gets the money. Slow networks, server errors and cash machines running out of notes are common causes. In these cases the bank, not you, must fix the problem.

What ₹100 a day means in rupees

Say you send ₹2,000 by UPI and the payment fails. Your money is cut, but the refund arrives four days after the deadline. The bank owes you ₹2,000 back plus ₹400 as the penalty.

Case	Money stuck	Days late	Penalty owed
UPI payment fails	₹2,000	4 days	₹400
ATM gives no cash	₹5,000	3 days	₹300
Card payment fails	₹10,000	2 days	₹200

The penalty doesn't grow with the amount. It's a flat ₹100 for each day of delay. So it matters most when a delay drags on for many days.

Who is affected by this rule

Almost every bank customer. If you use UPI for tea, groceries or rent, you're covered. So is anyone who pulls cash from an ATM or pays online with a debit or credit card.

Small shop owners gain too. Many of them take dozens of UPI payments a day. A stuck payment can hurt their cash flow badly.

If you're a senior citizen who uses ATMs often, keep your slips and messages. They make a complaint much easier to prove.

What to do if your money is stuck

Stay calm and follow these steps.

1. Don't pay again straight away. Check your account first, since many refunds come back on their own.
2. Save a screenshot, the transaction ID, the date and the time.
3. Check your bank statement after the deadline has passed.
4. Raise a complaint in your bank's app, on its helpline or at a branch. Note the complaint number.
5. If the bank doesn't answer in 30 days, file a complaint with the RBI ombudsman.

For more RBI updates that affect your money, see our news hub.

Frequently asked questions

Do I have to apply for the ₹100 per day penalty?

No, banks are expected to pay it without a request from you. If it doesn't show up, ask your bank in your complaint.

Does this cover a payment that went to the wrong person?

No. The rule is for failed payments where your money was cut but the transaction didn't complete. A successful payment to a wrong account is a different problem.

Where can I complain if my bank ignores me?

Start with your bank's grievance team and keep the complaint number. If you get no reply in 30 days, you can approach the RBI ombudsman online.