RBI rule failed transaction: You went to the ATM, tried to withdraw money, but the transaction failed. Money was deducted from the account. You were sending money to someone, the transaction failed again and the money was deducted. This happens often. This is the reason why RBI has made strict rules for this. If any money transaction of someone fails, then the bank refunds within a limited time period. But, if this does not happen then the bank will have to pay a penalty. Yes, the bank has to refund the money deducted from the account on a failed transaction. If the bank does not do this, then a penalty of Rs 100 will have to be paid daily. Let us know what is the strict rule of banking regulator Reserve Bank of India (RBI) on this.
RBI’s TAT Harmonisation Rule
RBI had issued a circular on 20 September 2019, in which instructions were given to equalize TAT i.e. turn around time and compensate the customers. According to RBI, if the bank does not reverse the debited money within a time limit in case of a transaction failure, then the bank will have to pay a penalty on it. The penalty will increase on a daily basis for the number of days the bank delays.
When is the penalty amount received?
The bank pays the penalty depending on the nature of the transaction i.e. the type of transaction that has failed. The bank will pay the penalty only if there was a reason behind the failure of the transaction over which you had no control. If you know the time of reversal of your transaction, then you can contact the bank and ask for the penalty.
In what situations is a penalty imposed?
If you make a transaction at an ATM and money is deducted from your account, but the cash is not withdrawn, the bank will have to reverse it within 5 days from the day of the transaction, failing which you will be charged a penalty of Rs 100 per day.
If card-to-card transfer fails
If you have done a card-to-card transfer and the money is deducted from your account but does not reach the beneficiary’s account, then the bank will have to reverse the debit within two days (T+1), i.e. the day of the transaction and the next day, otherwise you will have to pay a penalty of Rs 100 to the bank.
If PoS, IMPS transaction fails
If money is deducted from your account in PoS, Card Transaction, IMPS, UPI but is not credited to another account, then RBI has given T+1 day time to the bank for this. If the money is not transferred during this period, a penalty of Rs 100 will be imposed on the bank from the next day.
What is the rule if the money transaction fails?
You can read in detail about the penalty rules in case of money transaction failure. Click here for this – Harmonisation of Turn Around Time (TAT) and customer compensation for failed transactions using authorised Payment Systems
DISCLAIMER
We have taken all measures to ensure that the information provided in this article and on our social media platform is credible, verified and sourced from other Big media Houses. For any feedback or complaint, reach out to us at informalnewz@gmail.com
