New Delhi: The Reserve Bank of India (RBI) on Friday released a framework to make sure that customers are compensated in case of a transaction failure. In order to maintain uniformity while processing failed bank transactions, the central bank has brought about harmonisation of the turnaround time (TAT) for banks to settle the amount.
Besides, the central bank has set up auto reversal timelines for failed transactions. A report quoted the RBI as saying, “To have prompt and efficient customer service in all electronic payment systems, it is necessary to harmonise the TAT of resolution of customer complaints and charge-backs, and to have a compensation framework in place for the benefit of customers.”
Here’s How RBI Aims to Tighten Norms For Banks to Deal With Failed Transactions:
1) This April, the Reserve Bank of India announced its decision to harmonise TAT so as to resolve customer complaints and pay the compensation on time. This move came into play after the central bank found variations in the time taken to resolve customer complaints across different payment systems.
2) The RBI also notified about compensations payable for failed transactions using authorised Payment Systems. The financial compensation should be done suo motu by the bank, without waiting for a complaint or a claim by a customer, added the central bank.
3) New guidelines have been set up by the RBI for the eight categories of transactions through ATMs, cards, immediate payment system, unified payment interface, prepaid cards and so on.
4) RBI has set the timeline for auto-reversal to the day when the transaction took place to five more days.
5) If the compensation is not settled within the specified days, then the bank is required to credit Rs 100 per day of delay to the account holder, added the central bank.
Note that customers are welcome to register a complaint to the banking ombudsman in case they do not receive the benefit of redress of the failure as defined in the TAT. The central bank has tightened the norms to gain the confidence of customers besides ensuring uniformity while processing the failed transactions.