Because UPI payments settle directly into merchant bank accounts, customer refund requests for purchased goods or services must be initiated directly by the merchant from their bank app or UPI provider.
If money is debited from a customer's bank account but the merchant did not receive it due to banking network timeout, NPCI automatically reverses the funds within T+1 to T+2 banking business days.
Merchants are required to provide proof of service delivery for disputed transactions within 48 hours of notification.