Can Auto-Debit Payments Be Reversed Easily in India?

General
1

An incorrect auto-debit was charged to my bank account. Can I reverse the transaction, and how quickly can it be resolved?

2

Auto-debit payments are reversible depending on the kind of transaction at hand, the merchant company involved and the speed at which one acts. The banks in India take due instructions of RBI and NPCI in order to operate electronic mandates and dispute resolution. Nevertheless, the process does not always happen immediately.

Things you need to know:

  1. Required Immediate Action :
    Immediately after you check your account and realize that there was an invalid auto-debit or an unauthorized auto-debit, you should call the customer care of your bank, and file a dispute. With the help of the mobile banking or net banking, most banks will enable you to file disputes.

  2. Timeline for Reversal:

  • In the case of unauthorised auto-debits, RBI states that the collections must be refunded within 7 working days of filing the complaint.

  • That is, even when the auto-debit was okay but you decide that you want a refund back on the merchant (e.g., subscription renewal), the money cannot be reversed by the bank but rather by the merchant based on his or her refund policy.

  1. eMandates and UPI AutoPay:
    In case you set up the auto-debit through the UPI AutoPay or the eNACH method, then you can cancel the mandate within the UPI app or in internet banking. Any future debit will be prevented, and the past transactions would not be reversed automatically unless disputed.

  2. Recurring Credit Card Debits:
    These can be opposed as usual transaction does. Your credit company can take out a stopgap credit during the process of investigation.

3

Hey, I recently set up an auto-debit for one of my payments in India, but I’m worried about mistakes. If a wrong amount gets deducted, can the auto-debit payment be reversed easily ?

4

Hii, That’s a very valid concern. Auto-debit makes payments hassle-free, but in India, reversing a wrong or unintended deduction isn’t always as quick as setting it up. It really depends on the type of auto-debit and the bank/payment platform involved.

When Auto-Debit Can Be Reversed Easily:

• UPI AutoPay or Mandates: If you’ve used UPI AutoPay (through apps like Google Pay, PhonePe, Paytm, or your bank’s app), you can cancel the mandate anytime. If a wrong amount is deducted, raising a complaint through your UPI app or bank often gets the money reversed in a few working days.

• Credit Card Auto-Debits: If a subscription or merchant charges you incorrectly, you can dispute the transaction with your credit card provider. Banks usually investigate and may reverse the charge temporarily while they verify.

When It’s More Difficult:

• Bank Account ECS/Standing Instructions: If you’ve set up an ECS or direct standing instruction with your bank, the money is debited automatically on the scheduled date. Once deducted, it usually can’t be reversed instantly. You’ll need to contact the merchant/service provider and request a refund.

• Loan EMIs: Loan auto-debits are harder to reverse. If deducted wrongly, you’ll have to take it up with the bank/NBFC directly.

Practical Tips:

  1. Always keep track of your auto-debit mandates in your net banking or UPI app.

  2. Cancel or modify mandates if you no longer need them.

  3. In case of a wrong debit, immediately raise a complaint with your bank or card issuer.

• In short: Yes, auto-debit payments in India can be reversed, but the ease depends on the platform. UPI AutoPay and credit cards are simpler to fix, while ECS and loan EMIs take more follow-up.