According to Mint reports, recovering accidental UPI overpayments requires immediate action from both parties. Shams Tabrej, co-founder and CEO of Ezeepay, recommends that users contact the recipient first and request a refund of the excess amount. The recovery process can take several days to weeks depending on recipient cooperation, as reported by Mint. While UPI transactions cannot be reversed once processed, banks can facilitate dispute resolution to help users recover excess amounts.
As reported by Mint, legally, recipients have no rightful claim to retain money received solely due to payment errors. Tabrej noted that if excess amounts were transferred by mistake, recipients are generally expected to return the money once the error is brought to their notice. However, once UPI transactions are successful, they cannot be revoked or cancelled unilaterally by the recipient. In cases where recipients refuse to cooperate, users must approach their bank for redress and report disputes through the UPI platform, according to Mint reports.
According to Mint reports, retaining comprehensive transaction records is crucial for dispute resolution. Tabrej advises keeping records such as transaction IDs, screenshots, and payment receipts to support any formal grievance redressal process. The expert emphasizes that maintaining all information related to transactions is essential for solving any dispute, as reported by Mint.
As reported by Mint, UPI has become the preferred mode of digital payments for millions of Indians, with accidental payment errors becoming increasingly common. UPI transactions touched an all-time high in May, with total transaction value surging to ₹29.90 lakh crore and volumes reaching 23.2 billion, according to data released by the National Payments Corporation of India (NPCI), as reported by Mint. This scale of usage demonstrates the rising growth trend in UPI adoption across the country.
