If you have encountered failed transactions, you will now be eligible for compensation from the bank.
The Reserve Bank Friday prescribed a turnaround time (TAT) for banks to settle failed transactions for customers.
It has also notified compensation amounts that every customer will receive from banks for various types of customer complaints.
RBI said “The financial compensation should be done suo motu by the bank, without waiting for a complaint or a claim by a customer”
The compensations have been fixed at Rs 100 per day if the reversal does not happen within a specified timeline. The move will help to bring uniformity in the processing of the failed transactions. Also, this will also improve the experience the customers have with their banks.
Earlier in April, the central bank had announced a move to harmonise TAT for resolving customer complaints and compensation after observing that time taken for resolving customer complaint varies across payment systems.
RBI has added “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,”
The RBI has categorized eight different avenues of transaction in which the new guidelines will be applicable, including ATM out of cash, card transactions, immediate payment system, unified payment interface and prepaid cards, unable to dispense cash though you have money in your account.
RBI has fixed the time for redressal or TAT at between 1 day to 5 days depending on the service involved. The penalty will apply only if the bank fails to correct the error within this stipulated time. The bank will have to pay the penalty for the number of days beyond the TAT it takes to resolve the issue.
In case the bank fails to meet these obligations, the customers can register a complaint to the banking ombudsman.
Read Notification: https://www.rbi.org.in/scripts/BS_CircularIndexDisplay.aspx?Id=11693