The Reserve Bank of India (RBI) Friday announced a customer complaint redressal timeframe and compensation system for all authorised payment systems. Several times, during payments or fund transfers, the amount is debited from the user but is not credited to the receiver account. Now, as per the latest guidelines, if the money is not credited within the assigned time frame, a penalty of Rs 100 per day will be paid by the bank.
The move is expected to benefit users of various payment systems including UPI, e-wallets and others.
“After consultation with various stakeholders, the framework for TAT for failed transactions and compensation therefor has been finalised which will result in customer confidence and bring in uniformity in the processing of the failed transactions,” the RBI notification read.
The central bank has said the newly announced framework will build customer confidence and bring uniformity in the processing failed transactions, where the customer is not at fault.
The move is not only applicable to e-wallets or digital transactions but also ATM transactions, IMPS transfers and others.
Failed ATM transactions
During an ATM transaction, if the customer’s account is debited but cash has not been dispensed, the bank has five days to credit the amount back. Failing to do so, a penalty of Rs 100 per day will have to be paid by the bank to the account holder.
Failed IMPS and UPI transfers
If during an IMPS transaction, the amount is debited from the sender but is not received by the beneficiary, the beneficiary bank has an additional 1 day to auto-reverse the money or else will have to pay a penalty of Rs 100 per day.
The same is applicable for Unified Payments Interface (UPI) transfers. Though while paying to a merchant, the transaction confirmation is not received, the bank gets five days to resolve the issue.
You can check the different timeframe and the penalties set by RBI for different transactions here.