Money Debited but Not Credited? Here's What to Do Next


Money Debited but Not Credited? Here's What to Do Next


It's a frustrating and alarming situation: you've made a payment – whether for shopping, sending money to a friend, or paying a bill – and you see the amount debited from your bank account, but the recipient confirms they haven't received it. This common digital payment snag can happen with UPI, IMPS, NEFT, or even card transactions. Don't panic! This guide will walk you through the precise steps to take to resolve the issue and get your money back.

First and foremost: Do NOT panic. In most cases, especially with UPI transactions, funds that are debited but not credited are automatically reversed. Patience is key before escalating.

Understanding the "Debited but Not Credited" Scenario

When your money is debited but doesn't reach the intended recipient, it usually means the transaction got stuck somewhere in the payment ecosystem. Here are common reasons:

  • Technical Glitch: A temporary server issue at your bank, the recipient's bank, or the payment gateway/UPI platform (Paytm, PhonePe, GPay, BHIM).
  • Network Issues: Poor internet connectivity during the transaction.
  • Recipient's Account Issues: Recipient's account might be frozen, inactive, or has reached its transaction limit.
  • Incorrect Details: Though less common if debited, sometimes a slight mismatch in details can cause the credit to fail after debit.
  • Transaction Timeout: The transaction process exceeded the allowed time, leading to a debit on one side and a failure to credit on the other.

Step-by-Step Resolution Guide

Step 1: Verify and Wait for Auto-Reversal

This is the most crucial initial step:

  1. Check Your Bank Statement: Immediately check your bank's mini-statement or full statement online/via app. Confirm the debit entry. Look for a Unique Transaction Reference (UTR) or Transaction ID.
  2. Check Recipient's Statement: Ask the recipient to thoroughly check their bank statement (not just their SMS alerts, which can sometimes be delayed).
  3. Wait for Auto-Reversal:
    • UPI Transactions: For most failed UPI transactions where money is debited, an auto-reversal is expected within 24 hours to 3 business days (72 hours). As per RBI guidelines, if a UPI payment is debited but not credited, the beneficiary bank must process an auto-reversal by T+1 day (Transaction day + 1 day). If delayed beyond T+1, a penalty may apply to the bank.
    • IMPS Transactions: Typically, auto-reversed within 24 hours.
    • NEFT/RTGS Transactions: These usually process in batches. If debited but not credited, wait for the next settlement cycle. If still not credited, the amount is usually reversed by end of the next working day.
    • Card Transactions (Online/POS): Refunds usually take 5-7 business days, sometimes up to 15 days, depending on the bank and merchant.
  4. Document Everything: Take screenshots of the transaction status in your payment app and any debit alerts from your bank. Note down the Transaction ID/UTR, date, time, and amount.

Step 2: Contact the Payment App's Customer Support (For UPI/Digital Wallets)

If the auto-reversal doesn't happen within the expected timeframe, or if you need immediate clarification, contact the support team of the app you used (Paytm, PhonePe, GPay, BHIM, etc.):

  • In-App Support: Most apps have a dedicated "Help & Support" or "Raise a Dispute" section for specific transactions. Use this first.
    • Paytm: Go to 'Passbook/History' > Select the transaction > 'Help & Support' or 'Raise a Dispute'.
    • PhonePe: Go to 'History' > Select the transaction > 'Contact PhonePe Support' or 'Report Issue'.
    • Google Pay (GPay): Go to 'See all payment activity' > Select the transaction > 'Get help' or 'Report a problem'.
  • Provide Details: Clearly explain the issue, provide the Transaction ID (UTR), date, amount, and screenshots.
  • Follow Up: Note down the complaint reference number and follow up as advised.

Step 3: Contact Your Bank's Customer Care

If the payment app's support doesn't resolve the issue within a reasonable time (e.g., 2-3 business days after your complaint), or for direct bank transfers (NEFT/IMPS) or card transactions, contact your own bank:

  1. Call Customer Care: Call your bank's 24x7 customer care helpline.
  2. Lodge a Complaint: Explain the situation clearly. Provide your account number, the transaction ID (UTR), date, time, and amount.
  3. Get a Complaint ID: Insist on getting a complaint reference number. This is vital for tracking.
  4. Email/Branch Visit: If you don't get a satisfactory response via call, send an email to your bank's grievance redressal cell or visit your nearest branch with all your documentation (screenshots, transaction IDs).

Step 4: Escalate to NPCI (for UPI Transactions)

If your UPI transaction issue remains unresolved after contacting both the payment app and your bank for at least 3-5 business days from the complaint, you can escalate to NPCI (National Payments Corporation of India), the governing body for UPI:

  1. Visit NPCI Website: Go to npci.org.in.
  2. Navigate to Dispute Redressal: Look for 'What We Do' > 'UPI' > 'Dispute Redressal Mechanism'.
  3. File a Complaint: Select 'Transaction' under the 'Complaint' section.
  4. Provide Details: Fill in all requested information accurately, including your UTR, bank names, amount, date, and a detailed description of the problem.
  5. Submit: You will receive a complaint reference number to track its status.

Step 5: Approach the Banking Ombudsman (Last Resort)

If your complaint remains unresolved by your bank even after 30 days from the date of filing the complaint, or if you are not satisfied with the resolution provided by NPCI, you can approach the Banking Ombudsman. This is a free and speedy dispute resolution mechanism provided by the Reserve Bank of India (RBI).

  • Eligibility: You must have first approached your bank and given them 30 days to resolve the issue.
  • How to Complain:
    • Online: Visit the RBI's Complaint Management System (CMS) portal: cms.rbi.org.in.
    • Email: Send an email to cpc@rbi.org.in.
    • Offline: You can also submit a written complaint to the Centralised Receipt and Processing Centre, Reserve Bank of India, 4th Floor, Sector 17, Chandigarh - 160017.
  • Provide Details: Include all complaint IDs from previous escalations (bank, payment app, NPCI), transaction details, and supporting documents.

Important Tips to Remember

  • Act Quickly: Report the issue as soon as you notice it. While auto-reversals are common, timely reporting strengthens your case if escalation is needed.
  • Keep Records: Maintain a meticulous record of all transaction details, screenshots, complaint numbers, and communication with support teams.
  • Be Patient: While frustrating, the systems are designed for auto-reversal. Give them the specified timeframes (24 hours, 3-5 business days) before escalating.
  • Avoid Double Payment: If money is debited but not credited, do NOT attempt the same transaction again immediately, especially if it shows "pending." This can lead to double debit.

Frequently Asked Questions (FAQs)

Q1: My money was debited but not credited. How long will it take for a refund?
A1: For most UPI transactions, an auto-reversal usually occurs within 24 hours. If it's still pending, it can take up to 3 business days (72 hours). In rare cases or for other transaction types (like card payments), it might take 5-7 business days, sometimes up to 15 days.
Q2: What is a UTR number, and why is it important in this situation?
A2: UTR stands for Unique Transaction Reference. It's a unique 12-digit number assigned to every UPI/IMPS transaction. This number is crucial as it serves as the primary identifier for your transaction and is required when raising a complaint with your bank, payment app, or NPCI.
Q3: Should I contact the recipient if my money was debited but not credited to them?
A3: Yes, it's always a good idea to inform the recipient and ask them to check their bank statement thoroughly. Sometimes, the credit might arrive a bit later due to interbank processing times, or it might show up with a different transaction description.
Q4: What if I sent money to the wrong person or an incorrect account number?
A4: If you intentionally or accidentally sent money to a wrong but valid account, auto-reversal will not happen. You must immediately contact your bank's customer care and provide all transaction details. Your bank will then attempt to contact the recipient's bank to facilitate a reversal, but success depends on the cooperation of the wrong recipient. This is often a difficult situation to resolve.
Q5: When should I escalate my complaint to NPCI or the Banking Ombudsman?
A5: You should escalate to NPCI if your UPI issue is not resolved by the payment app or your bank within 3-5 business days of your initial complaint. The Banking Ombudsman should be approached as a last resort, typically if your complaint with your bank remains unresolved for 30 days.
Q6: Will I be charged a fee for a failed transaction or for raising a dispute?
A6: No, you will not be charged a fee for a failed transaction where money is debited and then refunded. Raising a dispute with your bank, payment app, NPCI, or the Banking Ombudsman is also a free service.