Failed Transactions: RBI Asks Banks to Pay Rs100 per Day Compensation for Delay in Crediting the Money

Those customers who have been making rounds of their bank to get back their hard-earned money after a failed transactions (usually in ATMs or online), here is a good news. The Reserve Bank of India (RBI) has asked all banks to pay a penalty of Rs100 per day for the delay in crediting money in customer's account after a failed transaction.

"It has been observed that a large number of customer complaints emanate on account of unsuccessful or ‘failed’ transactions. Wherever financial compensation is involved, the same should be effected to the customer’s account suo moto, without waiting for a complaint or claim from the customer. Customers who do not get the benefit of redress of the failure as defined in the turn around time (TAT), can register a complaint to the Banking Ombudsman of RBI," the central bank said in a notification

However, these directions are applicable only for domestic transactions or where both the originator and beneficiary are within India.

A ‘failed transaction’ is one that has not been completed due to any reason not attributable to the customer, such as failure in communication links, non-availability of cash in an automated teller machine (ATM) and time-out of sessions. Failed transactions also include credits, which could not be effected to the beneficiary account due to lack of full information or lack of proper information and delay in initiating a reversal transaction.

For failed transactions like cash not dispensed from ATMs, RBI has asked banks to auto-reverse the transactions within transaction date (T)+5 days. For any delay after this period, the banks is mandated to pay a compensation of Rs100 per day to the customer, automatically.

At the same time, for several online transactions, like card to card transfer, immediate payment system (IMPS), unified payments interface (UPI), Aadhaar payment bridge system (APBS), National Automated Clearing House (NACH) and prepaid payment instruments (PPIs) including cards and wallets, the banks are mandated to reverse the transaction within T+1 days.

Here is the list of transactions, its TAT and compensation to be paid to customer...