Sent Money to Wrong UPI ID? Don’t Panic! Here is the Step-by-Step Refund Guide (2025)

We have all been there. You are at a busy general store, or maybe you are quickly paying a friend. You type in the mobile number, enter the amount—say ₹5,000—and hit “Send.”

The familiar ping sound confirms the transaction. But then, your heart skips a beat.

You look at the name on the screen again. It’s not your friend. It is some stranger named “Ramesh Kumar” or “Unknown User.”

Panic sets in. Did I just lose my hard-earned money? Is it gone forever?

In India, where UPI (Unified Payments Interface) clocks over 10 billion transactions a month, this mistake is more common than you think. But here is the good news: Your money is not lost. According to RBI (Reserve Bank of India) guidelines, you have the right to get a refund for a wrong transaction, provided you act fast.

This comprehensive guide will walk you through exactly what to do—minute by minute—to reverse a wrong UPI payment on Apps like PhonePe, Google Pay, and Paytm.

The “Golden Hour” (What to do Immediately)

In medical terms, the “Golden Hour” is the critical time right after an accident. In banking, it is the same. The first 2-4 hours after the wrong transaction are crucial. Do not wait for tomorrow.

Step 1: Take a Screenshot (Proof is Everything)

Before you do anything else, take a screenshot of the “Transaction Successful” screen. You need to save the UPI Reference ID (or UTR Number). This 12-digit number is the key to tracking your money.

Step 2: Try the “Human” Approach First

This sounds simple, but it works 30% of the time.

• Identify the number you sent money to.
• Call them immediately.
• Be polite, not aggressive. Say, “Hello, I mistakenly sent ₹5,000 to your number via UPI. Could you please check and return it?”
• Many people are honest. If they agree, ask them to send it back to the same number.

Warning: Be careful. If the receiver asks you to “Scan a QR code” or “Enter PIN” to get money back, DO NOT DO IT. That is a scam. You only need to share your number to receive money, never scan anything.

Reporting via the App (GPay, PhonePe, Paytm)

If the receiver refuses to return the money or the number is switched off, you need to escalate this within the app immediately.

1. Google Pay (GPay)

• Open transaction history > Select the wrong transaction.
• Tap on the three dots (Menu) > Select “Get Help”.
• Choose the option: “I sent money to the wrong person.”

2. PhonePe

• Go to ‘History’ tab > Click the transaction.
• Click on “Contact PhonePe Support”.
• Select “I have sent money to the wrong account.”

3. Paytm

• Go to ’24×7 Help & Support’ > ‘UPI & Money Transfer’.
• Select the transaction and click on “Raise a Dispute”.

The Official Route (NPCI & BHIM)

If the apps don’t help (since they are just third-party apps), you must go to the boss of UPI—the NPCI (National Payments Corporation of India).

This is the most effective step.

1. Visit the Website: Go to npci.org.in.
2. Navigate: Click on “What we do” > “UPI” > “Dispute Redressal Mechanism”.
3. Fill the Form: Under the “Complaint” section:
   • Nature of Transaction: Select “Person to Person”.
   • Issue: Select “Incorrectly transferred to another account.”
   • Details: Enter your Email, Mobile, Bank Name, and the UTR Number.
   • Proof: Attach your screenshot.
4. Submit: Once submitted, your bank is legally notified to look into the matter.

Contacting Your Bank (The O.P.R. Rule)

RBI guidelines clearly state that if you report a wrong transaction within 3 days, the bank must help you reverse it.

• Email is better than Call: Don’t just rely on Customer Care. Send an email to your bank’s official support ID (e.g., customercare@sbi.co.in, support@hdfcbank.com).
• Subject Line: “WRONG UPI TRANSACTION – UTR [Insert Number] – URGENT”.
• The Content: Clearly mention that you made a mistake and request them to freeze the beneficiary’s amount.

What happens next? Your bank will contact the receiver’s bank. The receiver’s bank will ask the person for permission to debit the amount. If the person agrees, the money comes back.

The Legal Weapon (When They Refuse to Pay)

What if the receiver says, “I won’t return the money!”? Keeping money sent by mistake is a crime under Indian Law.

• Section 403 of the IPC (Indian Penal Code): Dishonest misappropriation of property. If someone uses money they know doesn’t belong to them, they can face legal action.

Action Plan:

1. Save the chat/recording where they refused.
2. File a complaint at cybercrime.gov.in.
3. Send a legal notice via a lawyer. Usually, the mention of “Cyber Cell” is enough to make people return the money.

READ MORE – Current Balance vs. Available Balance: Why Your App is Lying to You (And How to Avoid Fees)

Conclusion

Making a wrong UPI transaction is stressful, but it is not the end of the world. The digital banking system in India has safeguards for this.

The key is speed.

1. Call the person.
2. Report to NPCI.
3. Email your Bank.

Do not sit and wait. The faster you act, the higher the chances of getting your money back.

Disclaimer: The information provided in this article is for educational purposes only and does not constitute legal or financial advice. ZunoMoney is not responsible for any financial loss. Please consult your bank or a legal expert for specific issues.