NEFT/RTGS/IMPS Failed But Money Was Debited: What to Do

Last updated: 7 November 2026

This is one of the more alarming things that can happen with online banking: you send a transfer, your account shows the debit, and then the receiving side never gets it. The good news is that this is a well-understood failure mode with an RBI-mandated fix, and the money almost always comes back on its own. Here's the timeline you should expect, how to track the transaction while you wait, and what to do if the automatic reversal doesn't happen.

Why this happens

A transfer actually has two halves: your bank debits you, then passes the payment to the beneficiary's bank to credit the other account. Most of the time both halves complete within seconds. Occasionally the second half fails, maybe the beneficiary's bank is down, the account details don't match, or a technical fault interrupts the chain, after your bank has already taken the money out. When that happens, the system is designed to auto-reverse the debit, not leave it stuck.

What the RBI expects from your bank

The RBI's harmonised turnaround-time rules set out how quickly a failed transfer must be put back, and what the bank owes you if it's late:

IMPS: if your account is debited but the beneficiary's account isn't credited, the beneficiary's bank is expected to auto-reverse the amount, typically within a day of the transaction. If the reversal still hasn't happened by the fifth day, the bank owes you ₹100 per day of further delay.
NEFT: a transaction that can't be completed is meant to be returned to you the same business day, within the settlement batch it was processed in. If your bank delays the refund, it must pay you penal interest for the delay, at a rate the RBI sets, linked to its repo rate.
RTGS: follows the same principle. A failed or returned RTGS payment must be reversed promptly, with penal interest if the bank sits on it.

These figures come from the RBI's 2019 turnaround-time circular. Exact daily amounts and trigger days have been refined since, so treat them as "this should be fast, and there is a financial penalty on the bank if it isn't" rather than numbers to argue over with your bank's call centre.

What to do, in order

Find your UTR number from the SMS or email alert, your bank's app, or your statement. See our guide on what a UTR number is and how to use it. You'll need it for every step below.
Check your statement before panicking. A debit that shows as "pending" or with a hold marker often resolves on its own within a few hours. That isn't the same as a confirmed failed transfer.
Give it the time the rule above allows. Most IMPS reversals happen within a day; NEFT refunds the same business day. Don't escalate on day one unless the amount is large and time-critical.
If the window passes, raise a complaint with your bank through net banking's "Service Request" or "Dispute a Transaction" option, the app's chat support, or by calling customer care. Quote the UTR number, date, amount and beneficiary account every time; this is what lets the bank trace the transaction without you having to re-explain it.
Ask for a complaint reference number and note the date you raised it. This starts the clock for any compensation owed if the bank is late.
If the bank doesn't resolve it within 30 days, or its response is unsatisfactory, you can take it to the RBI Banking Ombudsman free of charge.

A quick way to rule out your own mistake first

Before assuming the system failed, confirm you didn't simply enter the wrong account number or IFSC code. A transfer to a real but incorrect account doesn't "fail"; it succeeds, just to the wrong person, which is a different problem with a different fix. See what to do if you sent money to the wrong IFSC code if that's closer to what happened. You can also verify the IFSC code you used to make sure it was a real, currently active branch.

Common questions

How long should I actually wait before complaining?

For IMPS, give it until the end of the next working day. For NEFT and RTGS, the same business day is the expectation. If nothing has moved by then, don't keep waiting; raise it.

Does the money come back automatically, or do I have to ask for it?

It's meant to be automatic. Most failed transfers reverse themselves without you doing anything. The steps above are for the cases where that doesn't happen on schedule.

Can I claim the ₹100-a-day compensation myself, or does the bank pay it automatically?

In principle it's meant to be credited automatically once the delay threshold is crossed, but in practice it's worth asking for explicitly when you raise your complaint, quoting the date you first reported the issue.

What if my account was debited for a UPI payment that failed, not NEFT/RTGS/IMPS?

The same principle applies. UPI failures are covered by the same RBI compensation framework, with similarly short reversal windows. Raise it the same way, through your bank's app or customer care, quoting the UPI reference number instead of a UTR.

Does it matter whether I made the transfer from a savings account or a current account?

No, the turnaround-time and compensation rules apply the same way regardless of account type. What matters is the payment method used (NEFT, RTGS or IMPS) and how long the delay has run, not whose account it is.

Before your next transfer

A quick check of the receiving branch's IFSC code takes a few seconds and rules out the most common avoidable mistake.

Verify IFSC Code Find IFSC Code

More guides

This guide is general information, not financial or legal advice. Limits, timings and charges are set by the Reserve Bank of India, NPCI and individual banks, and can change, so confirm current details with your bank.