Failed ATM transaction refund time and charges 2019: Banks will now have to pay you Rs 100 or more if they fail to redress a failed ATM transaction within a deadline.
Failed ATM transaction refund time and charges 2019: Banks will now have to pay you Rs 100 or more if they fail to redress a failed ATM transaction within a deadline. A recent RBI circular has made it mandatory for banks to pay to customers a certain amount to compensate for failed transactions not addressed within a fixed turn around time (TAT). The central bank’s circular defines failed transaction as “a transaction which has not been fully completed due to any reason not attributable to the customer such as failure in communication links, non-availability of cash in an ATM, time-out of sessions, etc.”
“Failed transactions shall also include the credits which could not be effected to the beneficiary account on account of lack of full information or lack of proper information and delay in initiating a reversal transaction,” it adds.
The bank will have to return the money to your account within six days, including the day of the failed transaction. The RBI circular has provided turn around time of T+5 days for pro-active reversal when the customer’s account has been debited but the ATM failed to dispense cash. Here T is the day of transaction.
In case of failure to reverse the money, banks will have to pay to customers at the rate of Rs 100 per day beyond the T+5 days.
The RBI circular has fixed different timelines for reversal of money to customers’ accounts in case of failed transactions with Card, PoS, CNP, IMPS, UPI, AEPS, ABPS, NACH, PPI.
The RBI noted that that ” a large number of customer complaints emanate on account of unsuccessful or ‘failed’ transactions.”
Failed ATM transaction: Suo Motu action
The central bank said that the financial compensation should be sent to the customers’ account suo motu, without waiting for a complaint or claim from the customer.
In case the customer fails to get the benefit of redress of failure defined in the notification, he/she can register a complaint to the Banking Ombudsman of RBI.