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Your Rights in Case of Transaction Failures

If your bank transaction fails but money gets deducted from your account, you’re entitled to a refund within a specific time frame. Thanks to strict RBI regulations, banks must now compensate customers if they delay reversing the deducted amount.

Key RBI Rule: Penalty on Delays

As per the RBI’s TAT (Turn Around Time) Harmonisation Rule, banks must process refunds promptly. If they fail, they’ll pay you a penalty of ₹100 per day for the delay. This applies to situations where the transaction failure was beyond your control.

Refund Timeframes Based on Transaction Type

1. ATM Withdrawals: If money is debited but cash isn’t dispensed, the bank must reverse it within 5 days.
2. Card-to-Card Transfers: Refunds must happen within 2 days (T+1).
3. PoS, IMPS, UPI Transactions: The timeframe is 1 day (T+1).

How to Claim the Penalty

If the bank doesn’t refund the money within the stipulated time, approach them to demand the penalty. Keep transaction details handy and follow up as needed.

Why This Rule Matters

This initiative ensures banks prioritize customer satisfaction and accountability. Now, you’re not only assured of getting your money back but also compensated for unnecessary delays.