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Saturday, December 5, 2020

Don't panic if ATM or UPI transaction fails, the bank will pay the penalty.

Do you know the number of days within which your bank has to reverse debits for failed transactions from your account and the amount of compensation you can get for delay beyond these timelines?

The Reserve Bank of India (RBI) has issued a circular dated September 20, 2019, on the harmonisation of Turn Around Time (TAT) and customer compensation in case of failed transactions. This means that if the bank does not reverse the money debited from your bank account due to a failed transaction within a specified time period, then they would have to pay a penalty to the customer. The penalty has to be paid on a per day basis for delaying the credit of money into the customer's account.

As per rules, your bank has to pay a penalty to you if it delays reversing debits of failed financial transfers from your account. Therefore, knowing the time allowed for reversal beyond which you can get compensation for different types of transactions such as failed cash withdrawals from ATMs, failed e-commerce payments etc is important. 

This would be beneficial for customers as whenever a cash withdrawal from an ATM fails, i.e., you try to withdraw money from the ATM but the machine does not disburse the money, you still get a message from your bank that money has been debited from your account. Even in case of payments made on an e-commerce website, it may so happen that money is debited from your account but is not credited to the seller's account. Consequently, you may be left worried about how long it will take to get the money back in your bank account. These RBI guidelines tell you the maximum time a bank can take to credit your money back in your bank account before the penalties kick in.

આ સંપૂર્ણ સમાચાર ગુજરાતીમાં વાંચો

According to the RBI circular, the penalty will be paid to you if the bank does not reverse the payment within the specified time period and failure of transaction happens due to reasons beyond your control. Examples of such transactions are - failure in communication link, non-availability of cash, time out sessions etc. 

Given below is the turn around time set for banks to auto-reverse the payment debited from your account and the penalty that will be paid to you if the bank takes more than the specified time.

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