In September 2019, RBI issued a circular on turnaround time (TAT) and customer compensation for failed bank transactions. Under this, if a bank does not return the debited money of a failed transaction within the stipulated time limit, then it will have to pay a fine to the customers. This fine will increase for each day of delay.

RBI's TAT Harmonization Rule-

RBI (Reserve Bank of India) issued a circular on 20 September 2019, which gave instructions on turnaround time (TAT) and customer compensation for failed bank transactions. This means that if the bank does not return the customer's debited money after a failed transaction within the stipulated time limit, then it will have to pay a fine. This fine will increase for each day of delay so that banks can be encouraged to return their money to the customers faster.

When is the penalty amount received?

The bank pays a penalty depending on the nature of the transaction i.e. the type of transaction that has failed. The bank will pay a 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 a penalty.

In what situations is a penalty imposed?

If you made a transaction at an ATM and money was deducted from your account, but cash was not withdrawn, then the bank will have to reverse it within 5 days from the day of the transaction, if you do not do so, you will get a penalty of Rs 100 every day.

If card-to-card transfer fails-

If you have done a card-to-card transfer and money is deducted from your account on the transaction but does not reach the beneficiary's account, then the bank will have to reverse the debit within two days, i.e. the day of the transaction and the next day, otherwise, a penalty of Rs 100 will have to be paid to the bank.

If PoS, IMPS transaction fails-

If money is deducted from your account through POS, card transaction, IMPS, or UPI and is not deposited in the other account, then RBI has given T+1 day to the banks to fix it. If the money is not credited even in this period, then a penalty of Rs 100 per day will be imposed on the bank from the next day.

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