New Delhi: Victims of Unified Payments Interface (UPI) fraud may be able to recover money lost through unauthorised transactions, but timely reporting and proper documentation can play a crucial role in securing a refund.
The Reserve Bank of India (RBI) has established customer protection guidelines that determine liability in electronic banking fraud cases. Under these rules, customers may have zero liability if a transaction results from a bank’s negligence or an eligible third-party security breach, provided the incident is reported within three working days of receiving the bank’s notification.
However, customers who knowingly share their UPI PIN, OTP or approve fraudulent payment requests may be held responsible for the initial loss. Any subsequent loss after reporting the fraud to the bank is generally the bank’s responsibility.
Experts advise victims to act immediately by contacting their bank through official channels, requesting the suspension of UPI services and reporting the incident to the national cybercrime helpline 1930. Complaints can also be registered at cybercrime.gov.in and through the concerned UPI application.
Victims should preserve transaction IDs, bank statements, SMS alerts, screenshots and communication records to support their claims. The RBI framework also requires banks to provide provisional credit in eligible cases within 10 working days and resolve complaints within 90 days.
If a bank rejects a refund request, customers can seek a written explanation and escalate the complaint through the bank’s grievance redressal mechanism. If the issue remains unresolved for 30 days or the response is unsatisfactory, they can approach the RBI Integrated Ombudsman through cms.rbi.org.in, subject to the scheme’s eligibility and timelines.
Experts emphasise that customers should never enter their UPI PIN to receive money or claim a refund. Reporting fraud without delay remains the most important step towards limiting financial losses.
