How to Recover Funds if You’ve Sent Money to the Wrong UPI ID

Recover Funds if You’ve Sent Money to the Wrong UPI ID: In recent weeks, a ransomware attack on C-Edge Technologies, a significant tech service provider for small banks in India, has underscored the importance of double-checking Unified Payment Interface (UPI) IDs before confirming transactions. This attack disrupted payment systems across nearly 300 local banks, highlighting a critical issue many face: mistakenly transferring money to the wrong UPI ID. This can occur when a phone number linked to a UPI ID is reassigned, leading funds to reach an unintended recipient.

Here’s a step-by-step guide on how to recover your money if you’ve sent it to the wrong UPI ID:

1. Contact Your Payment System Provider Immediately

First, get in touch with the payment system you used, such as Google Pay, PhonePe, or Paytm. Lodge a complaint about the incorrect transaction and provide all necessary details.

2. Submit a Dispute Redressal Form on the NPCI Website

Head over to the National Payments Corporation of India (NPCI) website. Navigate to the ‘Dispute Redressal Mechanism’ section and fill out the online form. Include details such as:

• Transaction ID
• Virtual Payment Address
• Amount Transferred
• Date of Transaction
• Email ID and Mobile Number

Don’t forget to upload your bank statement showing the deduction.

3. Specify the Nature of the Issue

In the dispute form, select ‘Incorrectly transferred to another account’ as the reason for your complaint. This will help in processing your request appropriately.

4. Escalate If the Issue Remains Unresolved

If you do not receive a satisfactory response, escalate the issue in the following order:

• Third-Party Application Provider (TPAP)
• Payment Service Provider Bank (PSP Bank)
• Your Bank
• NPCI

5. Approach the Ombudsman for Further Assistance

If the problem persists for more than a month or you are dissatisfied with the resolution, approach the RBI’s Ombudsman for Digital Transactions. This independent official can help mediate and resolve your issue.

6. File a Complaint in the Appropriate Jurisdiction

If needed, file your complaint in the jurisdiction where the system participant’s branch or office is located or where the customer’s address is registered.

Proving Unintentional Transactions

To facilitate the recovery of funds, you must provide proof that the transaction was unintentional. Once verified, the bank is responsible for reversing the transfer.

As Abhay Chattopadhyay, Partner at Economic Laws Practice, emphasizes, “When funds are transferred to an incorrect recipient, the affected user must furnish adequate proof to the bank demonstrating that the transaction occurred mistakenly or inadvertently.”

If the bank fails to reverse the transaction, you have the right to escalate your complaint to the Ombudsman under Regulation 8 of the Reserve Bank of India’s Ombudsman Scheme for Digital Transactions, 2019.

Taking these steps will help you navigate the recovery process and increase your chances of getting your funds back.