RBI Harmonised Turn Around Time (TAT) and customer compensation for failed transactions


The Reserve Bank of India vide notification dated 20th September, 2019 has finalised the framework on Harmonisation of Turn Around Time (TAT) for resolution of customer complaints related to failed transactions across all authorised payment system and compensation for such transactions.

This direction comes in pursuance of the observance of a large number of customer complaints that have surfaced on account of unsuccessful or ‘failed’ transactions. The reason for failure could be on account of various factors not directly attributable to the customer such as disruption of communication links, non-availability of cash in ATMs, time-out of sessions, non-credit to beneficiary’s account due to various causes, etc.

It has been observed that the rectification / compensation paid to the customer for these ‘failed’ transactions is not uniform. Hence, it has been decided to rectify and compensate the customers due to the inconvenience caused.

The TAT framework was put in place for prompt and efficient customer service in all the electronic payment systems, for resolution of customer complaints and compensation framework across all authorised payment systems.

It is to be noted that:

  • The prescribed TAT is the outer limit for resolution of failed transactions
  • The banks and other operators / system participants shall endeavour towards quicker resolution of such failed transactions.
  • In case of any financial compensation, the same shall be effected to the customer’s account suo moto, without waiting for a complaint or claim from the customer.

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 etc. The timeline for auto-reversal for failed transaction shall be the day of transaction+ 5 more days.

In case if the failed amount is not reverted back to the account, then the bank is required to credit Rs.100 per day as compensation for the delay. Customers, who do not get the benefit of redress of the failure as defined in the TAT, can register a complaint to the Banking Ombudsman of Reserve Bank of India.

Click here to read the Notification.

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