While using the Unified Payment Interface (UPI) to send money is simple, errors might occur and lead to money being sent to the incorrect person. Many consumers mistakenly send money from their UPI-linked mobile phones to the incorrect bank account. This occurs due to the connection between their phone number and UPI ID, which is related to their bank account.
For example, you often pay money to your landlord’s UPI ID-linked mobile device. Suddenly, though, the number is given to someone else, and you’re not informed of it. You mistakenly transfer funds to the previous number, which is now associated with an entirely separate person and UPI ID. Recovering the money that was transferred to the incorrect person is now your top priority.
Legal experts suggest proving the transfer was an accidental reclaim of funds that were sent to the incorrect receiver. The bank is in charge of reversing the transaction once it has been proven.
“In the event transfer of funds being made to a wrong recipient, sufficient proof is required to be furnished by the affected user before the bank that a transaction was done incorrectly/inadvertently,” said Abhay Chattopadhyay, Partner at Economic Laws Practice.
Chattopadhyay also mentioned that those affected have the right to file a complaint with the Ombudsman by Regulation 8 of the Reserve Bank of India’s Ombudsman Scheme for Digital Transactions, 2019 if a bank fails to fulfil its responsibility to guarantee the reversal of funds transferred to the incorrect recipient.
The importance of reporting a money transfer to the incorrect account should not be overlooked, according to Fincare Small Finance Bank’s COO-Operations, Customer Service, and Facilities, Shreejith Menon.
Menon additionally highlighted the significance of acting quickly if funds are accidentally sent to the incorrect account. To obtain a refund of funds, he urged consumers to get in touch with their bank as soon as possible, provide transaction data, and make an effort to get in touch with the unintended receiver.
Banks can help resolve disputes, but cooperation and policies are necessary for success. The probability of a successful settlement can be increased by prompt reporting and close cooperation.
Try These Methods To Get In Touch With NPCI For Assistance In Retrieving Funds That Were Inadvertently Moved To A Different UPI Account
- Go to https://www.npci.org.in/what-we-do/upi/dispute-redressal-mechanism for further information.
- Find the area labeled “complaint.”
- From the drop-down menu, choose the transaction type.
- Select the problem. For example, choose ‘Person to Person’ for the transaction type and ‘Incorrectly sent to another account’ for the issue if you accidentally transferred money to someone else.
The processes for raising a complaint to get a timely resolution are described on the NPCI website. The person should first file a complaint with the UPI app that was used to complete the transaction.
The next step is to use the grievance portal to make a complaint with NPCI and the bank that processed the transaction (PSP) if the issue is still not resolved. A person should contact the banking ombudsman if they have tried every other route and are still unhappy with the outcome.
