If money leaves your account on UPI but never reaches the person you paid, the receiving bank must reverse it by the next day, and pay you ₹100 for every day it is late after that, under a Reserve Bank of India rule. A payment you sent to the wrong person by mistake is a different problem, with a slower and less certain fix. Knowing which of the two you are dealing with decides what you do in the first hour.
This guide sets out the current limits, the rules on failed and fraudulent transactions, and the complaint ladder from your UPI app up to the RBI Ombudsman. Scam reporting through 1930 is covered in our separate festive scams guide, so here the focus is on errors, failures and your rights.
How much you can send
For ordinary transfers between people, the UPI limit is ₹1 lakh a day. NPCI left that unchanged when it raised limits for certain merchant payments from 15 September 2025, All India Radio reported.
| Payment type | Per transaction | Per day |
|---|---|---|
| Person to person | ₹1 lakh | ₹1 lakh |
| Insurance premiums, capital markets | ₹5 lakh | ₹10 lakh |
| Government e-Marketplace, tax payments | ₹5 lakh | ₹10 lakh |
| Travel and collections | ₹5 lakh | ₹10 lakh |
| Credit card bill payments | ₹5 lakh | ₹6 lakh |
Your bank can set a lower limit than NPCI’s, and many do for the first day after you register a new device or reset your PIN. Paying ₹2 lakh for a used car in Pallavaram over UPI may not go through even if the table says it should. Check with your bank.
Failed transactions: the T+1 rule
RBI’s turnaround time rules, in force since October 2019, set outer limits for failed payments, as its circular lays out:
- Person-to-person transfer debited but not credited: auto-reversal by the day after the transaction (T+1). After that, ₹100 a day compensation.
- Merchant payment debited but the shop did not get confirmation: auto-reversal within five days (T+5). After that, ₹100 a day.
So if a QR payment at a T. Nagar store shows as debited but the shopkeeper’s speaker never announced it, do not pay again in cash and walk off. Take a screenshot with the transaction reference, and raise the issue in your UPI app’s help section the same day.
Sent to the wrong person
A wrong transfer, where you typed a wrong number or picked the wrong contact, is a successful transaction in the system’s eyes. No auto-reversal applies. Steps that give you the best chance:
- Raise a dispute in the UPI app you used, choosing the wrong-transfer option, and note the complaint number.
- Call your bank and file a written complaint with the transaction reference, amount, time and the recipient’s UPI ID.
- Your bank contacts the recipient’s bank, which asks the account holder for consent to return the money. It cannot simply debit them.
- If the recipient refuses or cannot be traced, you may need a police complaint or civil remedy.
Before any large payment, send ₹1 first and confirm the name shown on screen matches the person you mean to pay.
Fraud and your liability
Under RBI’s 2017 customer protection circular, if a fraudulent electronic transaction happens because of a breach elsewhere in the system, and you report it within three working days of the bank’s alert, your liability is zero, according to the RBI circular. Report within four to seven working days and your liability is capped, at ₹10,000 for most savings accounts. The bank must credit the disputed amount provisionally within 10 working days.
New rules are coming. RBI has issued revised directions for commercial banks that apply to transactions from 1 January 2027, extending the zero-liability window to five calendar days and adding a one-time compensation for small frauds, a law firm summary of the directions says. Until then, the 2017 rules apply. Either way, speed is what protects you.
Taking it to the RBI Ombudsman
The RBI Integrated Ombudsman Scheme, 2026 took effect on 1 July 2026, replacing the 2021 scheme. Complain to your bank first. If it rejects your complaint, you are unhappy with the reply, or it does not reply within 30 days, you can file at cms.rbi.org.in, free of charge, according to Canara Bank’s summary of the scheme. You must file within 90 days of the bank’s final reply. The toll-free helpline is 14448, and compensation limits are now up to ₹30 lakh for financial loss and ₹3 lakh for harassment and expenses, Business Today reported.
Quick answers
What is the UPI limit for sending money to a friend?
₹1 lakh a day under NPCI rules, though your bank may set a lower limit.
My payment failed but money was debited. What now?
For transfers it should return by the next day; after that the bank owes ₹100 a day.
Can the bank reverse a wrong UPI transfer?
Not on its own. The recipient’s bank needs the account holder’s consent.
Where do I complain if my bank does not help?
The RBI Ombudsman at cms.rbi.org.in, after 30 days or an unsatisfactory reply.
This is general information, not legal advice; for large losses, consult a lawyer.
Information checked against official sources on 18 October 2026. Fees, dates and rules can change; confirm on the linked official pages before acting.
Sources
- NPCI raises UPI person-to-merchant transaction limit to ₹5 lakh (All India Radio News)
- Harmonisation of turn around time and customer compensation for failed transactions (Reserve Bank of India)
- Customer protection: limiting liability of customers in unauthorised electronic banking transactions (Reserve Bank of India)
- Salient features of the RBI Integrated Ombudsman Scheme 2026 (Canara Bank)
- RBI revamps customer grievance redressal (Business Today)
- RBI tightens customer protection framework for fraudulent electronic banking transactions (ELP)
