Failed Card or UPI Payment? RBI Rule Makes Banks Pay ₹100 a Day If the Refund Is Late

Updated 19 October 2026 · By Amit Kumar Bansal

Did a card swipe, ATM withdrawal or UPI payment fail after the money left your account? Then an RBI rule says the reversal has a deadline, and the bank owes you ₹100 for every day it is late.

Livemint covered it on 18 October 2026; the rule itself has applied since 15 October 2019, under RBI circular DPSS.CO.PD No.629/02.01.014/2019-20.

The Rule at a Glance

What went wrong	Money back by	Then you get
Card swiped at a shop, money debited, no charge slip	T + 5 days	₹100 a day
Card-to-card transfer debited, not credited	T + 1 day	₹100 a day
ATM debited, no cash	T + 5 days	₹100 a day
UPI to a person, not credited	T + 1 day	₹100 a day
UPI to a merchant, no confirmation	T + 5 days	₹100 a day

What This Means for You

“T” is the day of the transaction. If a failed payment is still sitting on your card statement or bank account after the deadline, take three steps.

First, raise a complaint with your bank and note the date. Second, ask for the ₹100-a-day compensation. Third, if the bank does not fix it within 30 days, file a free complaint with the RBI Ombudsman at cms.rbi.org.in. Keep the transaction ID and SMS.

Timelines as set out in the RBI circular dated 20 September 2019. Confirm on the RBI website.