On Rupeezy, money from a failed or rejected mutual fund purchase goes back to the bank account you paid from. If the payment itself failed, your bank reverses it. If the payment reached the clearing corporation, ICCL (Indian Clearing Corporation Limited, now renamed BSE Clearing Limited) refunds it. Rupeezy doesn't hold your money at any stage.
Why does ICCL handle my refund?
Mutual fund investments on Rupeezy are paid through a payment aggregator straight to ICCL, BSE's SEBI-recognised clearing corporation. Under SEBI rules, your money goes directly from your bank account to the clearing corporation, and anything paid back comes directly to your bank account. Rupeezy never handles it in between.
When will I get my money back if a payment fails?
- The UPI payment failed — if money left your account but the UPI payment didn't go through, your bank reverses it automatically. Under RBI rules for failed UPI payments, this happens by the next day (T+1) if the money never reached the receiver, and within 5 days (T+5) if the payment went through but wasn't confirmed.
- The payment couldn't be matched to your order — if the money reached ICCL but came from a bank account that isn't registered for your mutual fund account, or was less than the order value, the order is rejected. ICCL returns the money to the bank account it came from.
See also My amount got debited but the transaction shows as failed. When will I get the refund?
What if the fund house rejects my order?
If a mutual fund house (AMC) or its registrar rejects your purchase order — for reasons such as incorrect folio details or AMC restrictions — it returns the money to ICCL within 2 working days. ICCL then refunds it to your bank account as soon as it arrives, and no later than 5 working days from your order date (or from the day your payment was confirmed, if that was later).
When do I get my redemption money?
Redemption payouts (when you sell mutual fund units) are made by the AMC through ICCL, directly to your registered bank account. SEBI requires the money to be sent within 3 working days of the redemption date, or 5 working days for schemes that invest at least 80% of their assets overseas. Within that limit, payouts usually arrive:
- Liquid funds — usually T+1 working day
- Equity and debt funds — usually T+2 to T+3 working days
AMFI allows extra time in a few listed situations. For example, the payout can take 2 more working days if it has to be made by cheque or demand draft, or 1 more working day after a bank holiday in your state. If the bank account on your fund folio was changed shortly before you redeemed, the payout is made after a 10-day cooling-off period. If a fund house misses the deadline, it must pay you interest for the delay, currently 15% a year.
For more detail, see When will the amount be credited to my bank account after redeeming a mutual fund?
What if my redemption payout fails?
If the payout can't be credited to your bank account, the order still shows as successful on Rupeezy, because Rupeezy isn't told when a payout fails. Your units are not restored — the money stays with the AMC. The AMC tries the payout twice, on two separate days. If both attempts fail, you need to raise a request with that AMC directly; Rupeezy can't do this on your behalf. Changing the bank account on your Rupeezy account doesn't redirect the payout. See Why was my mutual fund redemption payout rejected?
What if money is debited by mistake?
If money is debited but no units are allotted, it comes back through one of the routes above: your bank reverses a failed payment, and ICCL refunds a rejected order within 5 working days.
Things to keep in mind
- Rupeezy doesn't retain or refund investor money directly. Refunds come from ICCL, or from your own bank when the payment itself failed.
- Refunds are always credited back to the same bank account used for the original transaction.
- Rupeezy notifies you by app, email or SMS when ICCL confirms a refund.
- If a purchase refund is unusually delayed, raise a ticket with Rupeezy Support and we'll coordinate with ICCL on your behalf.