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RBI: Get Rs 100 Daily for Delayed Failed Payments
19 Oct
Summary
- Banks must refund failed transactions within set RBI timelines.
- Customers receive Rs 100 daily if banks exceed reversal deadlines.
- Compensation is automatic, not requiring customer claims.
The Reserve Bank of India (RBI) has established clear rules for refunds and compensation regarding failed financial transactions. If a UPI, ATM, or card payment fails after debiting your account, banks must reverse the transaction within specific deadlines. For most UPI fund transfers, this reversal must occur by T+1 day. ATM cash dispensing failures and merchant UPI or card payment failures generally have a T+5 day limit.
Should banks or payment systems exceed these mandated timelines, customers are entitled to compensation. The RBI prescribes a penalty of Rs 100 for every day of delay beyond the set reversal period. This compensation is designed to be automatic, meaning customers should receive it without needing to make a formal claim.
The RBI's framework applies to all authorized payment systems, including non-banks. The clock for the reversal timeline begins on the calendar date of the failed transaction. If the compensation is not automatically credited, customers should first lodge a complaint with their bank or payment service provider.
For unresolved issues, customers can escalate to the RBI Ombudsman if the bank fails to respond within 30 days or the applicable payment system timeline. The focus remains on ensuring prompt resolution and customer compensation for failed transactions.
