A recent ransomware attack on C-Edge Technologies, a major tech service provider for small banks in India, has brought attention to the critical need for double-checking UPI IDs before making transactions. The attack, which occurred a week ago, temporarily disrupted payment systems across nearly 300 local banks. Many people may find themselves in a situation where they accidentally transfer money to the wrong Unified Payment Interface (UPI) ID. This mistake often happens when a phone number linked to a UPI ID is reassigned to a new individual, causing the funds to be received by an unintended recipient.

Steps to Recover Money Sent to the Wrong UPI ID

1. Contact the Payment System Provider: Immediately lodge a complaint with the payment system you used, such as Google Pay, PhonePe, or Paytm.
2. Submit a Dispute Redressal Form on NPCI Website: Visit the National Payments Corporation of India (NPCI) website and fill out the online form under the ‘Dispute Redressal Mechanism’ section. Be sure to provide details like the transaction ID, virtual payment address, amount transferred, date of transaction, email ID, and mobile number. Additionally, upload your bank statement showing the deduction.
3. Specify the Issue: Choose ‘Incorrectly transferred to another account’ as the reason for your complaint.
4. Escalate the Issue If Unresolved: If your complaint remains unresolved, escalate the issue in the following order:
   • First, to the Third-Party Application Provider (TPAP);
   • Next, to the Payment Service Provider Bank (PSP Bank);
   • Then, to the bank where you maintain your account;
   • Finally, to the NPCI.
5. Approach the Ombudsman for Unresolved Issues: If the issue is still unresolved after one month or if you are dissatisfied with the response, you can approach the RBI’s independent official (Ombudsman) for Digital Transactions.
6. File a Complaint in the Appropriate Jurisdiction: File complaints in the jurisdiction where the system participant’s branch or office is located, or where the customer’s address is registered for centralized operations.

Proving Unintentional Transactions

Recovering funds accidentally sent to the wrong recipient necessitates providing evidence that the transaction was unintentional. Once this is established, the bank holds the responsibility to reverse the transfer.

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As highlighted by Abhay Chattopadhyay, Partner at Economic Laws Practice, “When funds are transferred to an incorrect recipient, the affected user must furnish adequate proof to the bank demonstrating that the transaction occurred mistakenly or inadvertently.”

If the bank does not facilitate the reversal, you have the right to file a complaint with the Ombudsman under Regulation 8 of the Reserve Bank of India’s Ombudsman Scheme for Digital Transactions, 2019.

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