The problem
Money deducted from your account but not credited to the recipient? Transaction shows "failed" but the amount hasn't been reversed? This is one of the most common digital payment complaints in India.
Your legal rights
- RBI TAT Circular (2019): Banks must auto-reverse failed UPI/IMPS/NEFT transactions within T+5 business days.
- ₹100/day penalty: If the bank misses the T+5 deadline, they owe you ₹100 compensation per day of delay.
- Payment & Settlement Systems Act §18: The RBI has authority to direct any system participant to compensate you.
- Zero Liability: Under RBI's Circular on Limiting Liability, you have zero liability for unauthorized electronic transactions reported within 3 days.
How to escalate
- Complain to your bank's grievance cell (keep the reference number).
- If unresolved in 30 days, file on cms.rbi.org.in — the RBI Integrated Ombudsman portal.
- Send a legal notice under CPA 2019 to the bank demanding reversal + ₹100/day compensation.
- If still unresolved, file on e-daakhil.nic.in (Consumer Commission).
Generate your legal notice
Lawly's AI cites the exact RBI circular, Payment Systems Act §18, and calculates your ₹100/day compensation automatically.
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