Have you ever experienced a failed ATM or online transaction where money was deducted from your account but not credited to the recipient? To address such issues, the Reserve Bank of India (RBI) has implemented strict rules to protect customers. If the bank fails to refund the debited amount within a stipulated timeframe, they will be fined ₹100 daily until the issue is resolved. Here are the details:

RBI’s TAT Harmonisation Rule

In its circular dated September 20, 2019, RBI introduced guidelines to harmonize Turn Around Time (TAT) and compensate customers for failed transactions. Banks must reverse the debited amount within a specified period. If they fail to do so, a daily penalty of ₹100 applies until the reversal is completed.

When Is the Penalty Paid?

The penalty applies to failed transactions due to reasons beyond the customer's control. Customers can request compensation if the bank delays beyond the permissible timeframe.

Situations Where Penalty Applies

1. ATM Transaction Failure

If cash is not dispensed but money is deducted from your account:

• Reversal Time: 5 days
• Penalty: ₹100 per day after the 5th day

2. Card-to-Card Transfer Failure

If a card-to-card transfer fails and funds don’t reach the beneficiary:

• Reversal Time: 2 days (T+1)
• Penalty: ₹100 per day after the second day

3. PoS, IMPS, and UPI Transactions

For failed transactions at Point of Sale (PoS), via IMPS, or UPI:

• Reversal Time: 1 day (T+1)
• Penalty: ₹100 per day from the second day

What Happens if the Bank Delays?

Customers can approach the bank and demand the penalty if the refund isn't processed on time. Ensure you track the timeframe and contact your bank if delays occur.

Conclusion

RBI’s strict regulations ensure better accountability from banks and safeguard customer interests. If you encounter a failed transaction, know your rights and seek compensation promptly.