Know your right when banking transactions fail
If the money is debited from your account, your bank or wallet or any other company must reverse it within a time RBI has specifiedIf the sender’s account is debited and the beneficiary has not received it in the stipulated time, the penalty will be paid to the receiver
Transaction failures are not uncommon. They can happen due to various reasons, sometimes due to the connectivity at the consumer’s end.
But if the money is debited from your account, your bank or wallet or any other company must reverse it within a time Reserve Bank of India (RBI) has specified. If the institution doesn’t stick to the timeline, a consumer can ask for compensation.
If the sender’s account is debited and the beneficiary has not received it in the stipulated time, the penalty will be paid to the receiver. But if the problem is at the sender’s bank account, the person who initiated the transaction receives the compensation. In most transactions, the penalty is ₹100 per day.
ATM TRANSACTIONS
1. Customer’s account debited, but cash not dispensed.
Timeline: It should be reversed within the next five working days or the bank pays the penalty
CARD TRANSACTIONS
2. When making a card-to-card transfer, the account debited, but the beneficiary card account does not get credited.
Timeline: The auto-reversal should happen within two working days.
3. At merchant stores, the card is debited when used at the Point-of-Sale terminal, but there’s no confirmation.
Timeline: Money should be back into the cardholder’s account within the next five working days.
ONLINE TRANSACTIONS
4. A customer sends money over Immediate Payment System (IMPS), or UPI, or NEFT, or RTGS, but the beneficiary doesn’t receive the money
Timeline: The reversal should happen within two working days. But if the UPI payment was made at a merchant store, the settlement should occur within six days, after which the customer can get compensation.
WALLETS
5. Customer sends money, but the beneficiary doesn’t receive it.
Timeline: Settlement should happen within two working days.
(Do you have personal finance queries? Send them to mintmoney@livemint.com and get them answered by industry experts)
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