On several occasions, ATMs do not dispense cash and the account is also debited. In other cases, the debit card account is debited but the beneficiary card account is not credited. Keeping all such failed transactions in mind and considering the benefits to be given to the customers, the Reserve Bank of India has put new rules that outline the turnaround time (TAT) for resolution of such complaints when there is a delay in reversing the failed transaction amount.
Normally, a failed transaction is the outcome of failure in communication links, non-availability of cash or session timed out.
The customer’s bank account debited but cash not dispensed at ATMs. Debit card account debited but the beneficiary card accounts not credited. For the benefit of bank account holders, the Reserve Bank of India or RBI has put in place new rules for such failed transactions, outlining the Turn Around Time (TAT) for resolution of such customer complaints and compensation guidelines in case there is a delay in reversing the failed transaction.
- When the ATM has failed to dispense the cash and the amount is debited from the account of the customer then as per the new guidelines, the bank has to reverse the failed transaction within a maximum of transaction date (T) + 5 days. If the bank fails to do so in the given time, then it will have to pay Rs 100 per day as compensation post the T+5 days to the credit of the account holder.
- The above-mentioned rule to reverse the transaction is also applicable at the micro-ATMs that support basic banking transactions via a biometric authentication system.
- In cases where the debit card to debit card transactions are failed i.e. customer’s card account has been debited but the receiving card account is not credited, the bank will have to reverse the amount within T+1 day. If the financial institution failed to do so, it will compensate its customers by paying Rs 100 per day basis beyond the given time frame.
The same rule is also applicable during the failed IMPS transactions, where again the amount has been debited but the beneficiary has not received the amount.
- At the point of sales (PoS) debit card transactions, including cash at PoS, if the customer’s account is debited but the merchant has not received the payment or the charge slip is not generated, the transaction has to be reversed within T+5 days. If the reverse of the payment goes beyond the T+5, the bank will have to compensate the customer by paying Rs 100 per day beyond T+5 days.
- The same applies to the failed transactions at card not present (CNP) as well as on the other e-commerce payments.
(With input from agencies)