Through the introduction of digital buying, online payments and express checkouts, Indian consumers are more connected than ever. However, what do you do when that refund you were due to receive does not come by? It may be a non-delivered UPI transaction, a slow reimbursement of an e-store transaction or an undelivered service reservation, refusing to refund your cash- digital refund delays are becoming more prevalent.
Luckily, Indian consumers do not act as powerless people. Indeed, legal actions regarding the consumers, who complained and became active in the court, demonstrated that consumers can obtain justice. The blog examines the actual cases when consumers received the payment as a compensation of the delay of digital refunds and what you may do in case you are waiting till forever to receive your cash.
UNDERSTANDING DIGITAL REFUND DELAYS
A digital refund delay happens when a company, payment gateway, or service provider fails to return money within a reasonable time after:
- A failed transaction,
- A cancelled order or service,
- A defective product return,
- Or any online payment glitch.
According to RBI and Consumer Protection regulations, refunds must be processed within 5 to 7 working days in most cases. Failure to do so could be considered deficiency in service under consumer law.
RECENT CASES WHERE CONSUMERS WON
Case 1: UPI Transaction Failed, Refund Delayed by 45 Days
- A Bengaluru-based consumer made a UPI payment via a popular e-wallet app. The amount was debited, but the transaction failed.
- After multiple complaints, the refund took 45 days.
- The consumer filed a complaint in the District Consumer Disputes Redressal Commission.
- Conclusion: ₹5,000 compensation + ₹1,000 for legal expenses awarded.
Case 2: Amazon Refund Stuck for Returned Item
- A customer returned a defective mobile phone but didn’t receive the refund after 15 days.
- Despite repeated emails, there was no response.
- The consumer approached the commission with all screenshots and invoices.
- Conclusion: Full refund ordered with interest + ₹3,000 compensation for mental harassment.
Case 3: Bus Ticket Cancellation on Travel App
- A user cancelled a bus ticket booked through an online travel app.
- The refund was shown as “processed” but never got deposited in the bank account.
- After complaining via National Consumer Helpline, the company settled the amount, but the consumer still approached the forum.
- Conclusion: ₹2,500 compensation for inconvenience and deficiency in service.
HOW TO USE THE NEW NATIONAL CONSUMER HELPLINE (NCH) APP
Launched by the Ministry of Consumer Affairs, the NCH App is a game-changer for digital grievance redressal.
Key Features:
- File complaints directly from your phone.
- Track complaint status.
- Get support through chat or call.
- Forward unresolved complaints to Consumer Commissions.
Steps to Use It Effectively:
- Download “NCH Consumer App” from Play Store or App Store.
- Register using your mobile number and OTP.
- Tap “Register Complaint”, choose the sector (e.g., e-commerce, travel, finance).
- Attach evidence (screenshots, bills, transaction details).
- Submit and note your docket number for tracking.
- If not resolved in 30 days, escalate the matter to a Consumer Forum.
KNOW YOUR RIGHTS IN DIGITAL TRANSACTIONS
Right to Timely Refund.
- As per RBI guidelines and e-commerce regulations, refunds must be credited within 7 working days of approval.
Right to Compensation.
Under the Consumer Protection Act, 2019, you can file a complaint for:
- Deficiency of service,
- Unfair trade practices,
- Digital fraud, or
- Delayed refunds.
Right to Compensation.
You can claim compensation for:
- Mental harassment,
- Loss of time,
- Legal costs incurred due to unnecessary delay.
LEGAL BACKINGS
1. Consumer Protection Act, 2019
- Sections 2(6) & 2(11): Define deficiency in service and unfair trade practices.
- Section 35: Allows filing complaints in District Forum for claims under ₹50 lakh.
2. Reserve Bank of India (RBI) Guidelines on Failed Transactions (2019)
- Refund must be credited within T+5 days (transaction day + 5) for failed electronic transactions.
- Delay beyond this attracts penalty payable to consumer.
3. Information Technology Act, 2000 – Section 43A
- Companies handling sensitive data (like card/payment info) are liable for damages in case of negligence or failure in securing transactions.
4. E-commerce Rules, 2020 (under Consumer Protection Act)
- Sellers and platforms must ensure refunds are processed within the stated time frame.
- Failure to do so may be treated as unfair trade practice.
5. Supreme Court Ruling – Kishore Ramesh v. Flipkart (2021, SC order reference)
- Upheld that e-commerce platforms cannot delay refunds unreasonably.
- Reinforced that platforms are responsible for seller actions under consumer law.
FAQs
Q1. In How many days I will get my Refund?
A: As per RBI and e-commerce guidelines, refunds for digital transactions should typically be processed within 5 to 7 working days. If not, it can be considered a deficiency in service.
Q2. Can I file a legal complaint just for a delay in refund?
A: Yes. A refund delay, especially when ignored or unresolved, can be challenged as deficiency of service under the Consumer Protection Act, 2019. You can seek both the refund and compensation for inconvenience.
Q3. What if the platform says the refund is “initiated” but I haven’t received it?
A: You can:
- Ask for the UTR number (transaction ID),
- Confirm with your bank,
- File a complaint on the National Consumer Helpline (NCH) App or directly approach the Consumer Forum.
Q4. Do I need a lawyer to file a consumer complaint?
A: No, not necessarily. You can file a consumer complaint yourself by submitting a written application or using platforms like the NCH App. However, for higher compensation or complex matters, legal help is advisable.
Q5. Can I claim compensation for mental harassment or delay?
A: Yes. Several consumer court judgments have awarded compensation for:
- Mental agony,
- Loss of time,
- Repeated follow-ups,
- Legal costs.
CONCLUSION
If you’ve ever been stuck waiting for a refund after shopping or paying online-you’re not alone. But more importantly, you have rights. Whether it’s a failed UPI payment, a returned item, or a cancelled service, companies are legally bound to return your money within a few days.
And if they don’t? You can act. Thanks to strong consumer laws, real people are now winning compensation through simple complaints-some even through apps like the National Consumer Helpline.
So do not stay silent. Keep your receipts, raise your complaint, and follow up. In today’s digital world, being informed is your biggest power-and the law is on your side.
