RBI

RBI framework for Turn Around Time & customer compensation for failed transactions

RBI framework for Turn Around Time (TAT) and customer compensation for failed transactions using authorised Payment Systems

Monetary Policy statement of RBI dated April 4, 2019 proposed that the Reserve Bank would put in place a framework on Turn Around Time (TAT) for resolution of customer complaints and compensation framework across all authorised payment system

The RBI has stated that as observed, a large number of customer complaints emanate on account of unsuccessful or ‘failed’ transactions which 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. However, the rectification / Compensation paid to the customer for these ‘failed’ transactions is not uniform.

Accordingly, the Bank has finalised the framework for TAT for failed transactions and compensation to boost customer confidence and bring in uniformity in processing of the failed transactions.

The revised framework shall come into effect from October 15, 2019

It has been clarified that :

  • the prescribed TAT is the outer limit for resolution of failed transactions; and

  • the banks and other operators / system participants shall endeavour towards quicker resolution of such failed transactions.

Also  Wherever financial compensation is involved, the same shall be effected to the customer’s account suo moto, without waiting for a complaint or claim from the customer.

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.

RBI framework for Turn Around Time (TAT) and customer compensation for failed transactions using authorised Payment Systems:

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