diff --git a/signup-service/src/main/java/io/mosip/signup/services/RegistrationService.java b/signup-service/src/main/java/io/mosip/signup/services/RegistrationService.java
index 8498f817..57842e97 100644
--- a/signup-service/src/main/java/io/mosip/signup/services/RegistrationService.java
+++ b/signup-service/src/main/java/io/mosip/signup/services/RegistrationService.java
@@ -216,6 +216,7 @@ public VerifyChallengeResponse verifyChallenge(VerifyChallengeRequest verifyChal
                 otpChallengeInfo.get().getChallenge());
         if(!challengeHash.equals(transaction.getChallengeHash())) {
             transaction.incrementVerificationAttempt();
+            cacheUtilService.createUpdateChallengeGeneratedTransaction(transactionId, transaction);
             log.error("Transaction {} : challenge not match", transactionId);
             throw new ChallengeFailedException();
         }