Unified Payments Interface (UPI) has emerged as a transformative force in revolutionizing how we transfer funds and conduct transactions. As with any technology, however, glitches and issues can arise. To address these concerns and ensure consumer protection, the UPI ecosystem has put in place a comprehensive mechanism for raising complaints about UPI transactions. This process empowers end-user customers to voice their grievances, seek resolutions, and maintain trust in the digital payment landscape.
Every end-user customer engaging in UPI transactions holds the right to voice their concerns when confronted with issues related to their transactions. Whether it’s a failed fund transfer or a disputed merchant transaction, the process for raising complaints is designed to ensure that consumer interests are upheld. To streamline this process, the Payment Service Provider (PSP) app or Third Party Application Provider (TPAP) app acts as the initial point of contact for complaint registration.
The procedure for filing a complaint is user-friendly, ensuring that consumers of varying technological aptitudes can easily navigate it. Upon encountering an issue, the end-user customer can identify the relevant UPI transaction and initiate a complaint. The pertinent transaction details are captured, aiding in the accurate assessment and resolution of the issue at hand.
In cases where the initial complaint remains unresolved, the escalation hierarchy comes into play. This system is structured to ensure that grievances receive the attention they merit. The first point of escalation is the TPAP if the transaction was conducted through a TPAP app. From there, the complaint progresses to the PSP Bank, followed by the bank where the customer maintains their account. The final escalation points are the National Payments Corporation of India (NPCI), the entity governing UPI, and the Banking Ombudsman or Ombudsman for Digital Complaints.
In situations where traditional channels fail to provide resolution, consumers have the option to approach the Banking Ombudsman or the Ombudsman for Digital Complaints. These entities serve as a final recourse, offering consumers a platform for their grievances to be reviewed by impartial third parties. link