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bank failures

When you will get refund if your online transaction fails


When you will get refund if your online transaction fails English.Lokmat.com

April 1 (i.e., Thursday) was the financial year closing and banks were shut on that day. Due to this, many customers of various banks faced issues related to the transfer of money via NEFT, IMPS and UPI
As per a tweet by the National Payments Corporation of India (NPCI): The Financial year-end closing had led to some UPI and IMPS transaction failures at few banks.
However, as per replies by customers to the NPCI tweet, many whose transactions failed are still waiting for the amount to be credited back into bank accounts, two days later.
So, now the question that many will be asking is how long does it take for the amount to be reversed back to the bank account in case of a failed NEFT, RTGS or UPI transaction?
The Reserve Bank of India (RBI) issued a circular dated September 19, 2019, on the harmonisation of the Turn Around Time (TAT) and customer compensation in case of failed transactions.
As per the circular, if the money debited from customer’s bank account does not reverse back to the bank account within the specified time period, due to a failed transaction, then the bank is liable to pay a penalty of Rs 100 per day to the customer.
As per the circular, in case of failure of an IMPS transaction where customer account is debited but the beneficiary account is not credited, auto-reversal must be done in T+1 day, where T refers to the transaction date.
What it means is that if a transaction fails today, the amount should be credited back to the account of the person initiating the transaction by the end of next working day.
If the bank does not credit the amount back to the customer’s account by T+1 day, then the bank is liable to pay a penalty of Rs 100 per day for the delay beyond T+1 day.
Similarly, in case of transfer via UPI, where bank account is debited but beneficiary account is not credited, then auto-reversal must be done by the beneficiary bank by T+1. If not done, then penalty of Rs 100 per day beyond T+1 is levied.
In case you have experienced such a failed transaction you need to check the timeline allowed to your service provider to settle this issue. If they fail to do so within this timeline you need to lodge a complaint with your service provider or system participant.
If they fail to resolve this issue within one month you can escalate the issue to the Ombudsman under The Ombudsman Scheme for Digital Transactions, 2019. You may reach out to your respective area Ombudsman here: Depending upon the nature of money transfer involved, RBI has given different settlement periods. Given below is the timeline of auto-reversal by the service provider and the compensation amount you are entitled to get in case of noncompliance by the service provider.



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