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RBI rule failed transaction: You went to the ATM, tried to withdraw money, but the transaction failed. Money was deducted from the account. You were sending money to someone, the transaction again failed and the money was deducted. This happens often. This is the reason why RBI has made strict rules for this. If someone’s money transaction fails, the bank refunds it within a limited time period. But, if this does not happen then the bank will have to pay penalty. Yes, the bank will have to refund the money deducted from the account on failed transaction. If the bank does not do this then a penalty of Rs 100 will have to be paid daily. Let us know what strict rules the banking regulator Reserve Bank of India (RBI) has on this.
TAT Harmonization Rules of RBI
RBI had issued a circular on 20 September 2019, in which instructions were given to equalize the TAT i.e. turn around time and compensate the customers. According to RBI, if the bank does not reverse the debited money within the time limit in case of transaction failure, then the bank will have to pay penalty on it. The number of days the bank delays, the penalty will increase on a daily basis.
When is the fine amount received?
The bank pays the penalty depending on the nature of the transaction i.e. the type of transaction that failed. The bank will pay the penalty only if the transaction failure was due to a reason beyond your control. If you know the time when your transaction was reversed, you can contact the bank and ask for the penalty.
Under what circumstances is a fine imposed?
If you do a transaction from ATM and money is deducted from your account but the cash is not withdrawn, the bank will have to return it within 5 days from the day of the transaction, failing which you will be charged a penalty of Rs 100 per day .
If card-to-card transfer fails
If you have done a card-to-card transfer and the money has been deducted from your account but has not reached the beneficiary’s account, the bank must reverse the debit within two days (T+1), i.e. on the day of the transaction and the next day. You will have to do this, otherwise you will have to pay a fine of Rs 100 to the bank.
If PoS, IMPS transaction fails
If money is deducted from your account through PoS, card transaction, IMPS, UPI but is not deposited in another account, then RBI has given T+1 day time to the bank for this. If the money is not transferred within this period, a fine of Rs 100 will be imposed on the bank from the next day.
What is the rule if a money transaction fails?
You can read in detail about the rules on penalties in case of failure to transact money. Click here for this – Reconciliation of Turn Around Time (TAT) and customer compensation for failed transactions using authorized payment systems.