RBI Gets Strict On Failed Transaction Complaints; Firms Up Rules For Banks, Increases Penalties  

The Reserve Bank of India on Friday (20 September) tightened its norms and advised the banks to set a turnaround time (TAT) for the settlement of failed customer transactions, reported Livemint.

It also notified the banks of compensations payable for various types of custormer complaints. The banks will now have to make the financial compensations suo motu, without waiting for a complaint or a claim by a customer.

The new guidelines will be applicable in eight different avenues of transaction including ATMs, card transactions, immediate payment system, unified payment interface, and prepaid cards.

According to the new norms, the banks will have a deadline to auto-reverse the amount at between one day after the transaction to five days. The RBI also stated that in most financial compensations Rs 100 per day have to be paid if reversal fails to take place within a specified timeline.

It also made a provision for the customers to register a complain to the banking ombudsman in case they do not get the benefit of redress of the failure as defined in the TAT.

The decision is expected to uplift customer confidence and to have an uniformity in in processing of the failed transactions, the RBI said.