The country’s central bank, the Reserve Bank of India (RBI) has come out with a new order for banks and payment system operators regarding the failed transaction of customers. Under this, the time period has been fixed for the disposal of grievances and auto reversal of the amount on the failed transaction for the banks, which has been termed as Turn Around Time (TAT).RBI

Key points:
i. Banks will have to pay compensation to the customers if there is no settlement or reversal of the transaction within this time period. This compensation will be as per Rs 100 per day after completion of the time period. This RBI order will come into effect on October 15, 2019.
ii. Under this decree, all Authorized Payment Systems like ATM (Automated Teller Machines)Transaction, Card to Card Fund Transfer, PoS (Point of Sale) Transactions, Cardless e-Commerce, IMPS (Immediate Payment System) Transaction, UPI (Unified Payments Interface)Transactions, Aadhaar Enabled Transaction, National Automated Clearing House (NACH) and Mobile app transaction will be covered.

Transaction and compensation details

Description of the incidentMatterTimeline of auto reversal of transactionCompensation from bank on delay
ATM TransactionMoney was deducted from customer’s bank account but cash was not withdrawnTransaction Day + 5 Days Maximum (T + 5)Rs 100 / day after completion of T + 5 period
Card to card transferThe amount debited from one card but did not reach another cardMaximum 1 day after transaction (T + 1)Rs 100 / day after completion of T + 1 period
Transactions from PoS machine, including cashMoney was deducted from the account but the merchant did not get confirmation or charge slip was generated.Transaction Day + 5 Days Maximum (T + 5)Rs 100 / day after completion of T + 5 period
E-commerce where card is not presentMoney deducted from account but merchant did not get confirmationTransaction Day + 5 Days Maximum (T + 5)Rs 100 / day after completion of T + 5 period
Transactions from IMPSThe amount was deducted from the account but did not reach the recipient’s accountTransaction Day + 1 Day Maximum (T + 1) for Beneficiary BankRs 100 / day after completion of T + 1 period
Fund transfer from UPIAmount deducted from account but did not reach beneficiary accountTransaction Day + 1 Day Maximum (T + 1) for Beneficiary BankRs 100 / day after completion of T + 1 period
Payment to merchant from UPIMoney was deducted from account but merchant did not get confirmationTransaction Day + 5 Days Maximum (T + 5)Rs 100 / day after completion of T + 5 period
Aadhaar enabled payment system (AePS), including AadhaarMoney deducted from account but merchant did not get confirmation / did not reach beneficiary account in fund transferTransaction day + 5 days maximum (T + 5) for credit adjustmentRs 100 / day after completion of T + 5 period
Aadhaar Payment Bridge System (APBS)Delay in credit of money in beneficiary accountTransaction Day + 1 Day Maximum (T + 1) for Beneficiary BankRs 100 / day after completion of T + 1 period
National Automated Clearing House (NACH)Delay in credit or reversal of money in beneficiary accountTransaction Day + 1 Day Maximum (T + 1) for Beneficiary BankRs 100 / day after completion of T + 1 period
Prepaid Payment Instruments (PPIs) – Card / WalletMoney in PPI of Beneficiary not credited / Money deducted from PPI but merchant did not get confirmationTransaction Day + 1 Day Maximum (T + 1)Rs 100 / day after completion of T + 1 period
Note: T means day of transaction.

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