{"id":3817,"date":"2019-09-24T22:42:50","date_gmt":"2019-09-24T17:12:50","guid":{"rendered":"http:\/\/yourcareerheights.com\/?p=3817"},"modified":"2019-09-24T22:42:51","modified_gmt":"2019-09-24T17:12:51","slug":"rbis-new-guidelines-for-failed-atm-transactions","status":"publish","type":"post","link":"https:\/\/yourcareerheights.com\/?p=3817","title":{"rendered":"RBI’s new guidelines for ‘failed’ ATM transactions"},"content":{"rendered":"
\n
\n\t

The Reserve Bank of India on Friday the 20th September prescribed a turnaround time (TAT) for banks\u00a0to settle failed transactions for customers and also notified compensations payable for various types of customer complaints. A\u00a0large number of customer complaints emanate on account of unsuccessful or \u2018failed\u2019 transactions. Failure 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\u2019s account due to various causes, etc. Rectification \/ Compensation paid to the customer for these \u2018failed\u2019 transactions is not uniform.<\/p>\n

\"To have prompt and efficient customer service in all electronic payment systems, it is necessary to harmonise the TAT of resolution of customer complaints and charge-backs, and to have a compensation framework in place for the benefit of customers,\" the RBI had said.<\/p>\n

RBI has notified that:<\/p>\n

    \n
  • The prescribed TAT is the outer limit for resolution of failed transactions; and<\/li>\n
  • The banks and other operators \/ system participants shall endeavour towards quicker resolution of such failed transactions.<\/li>\n
  • \u00a0Wherever financial compensation is involved, the same shall be effected to the customer\u2019s account suo moto, without waiting for a complaint or claim from the customer.<\/li>\n
  • 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.<\/li>\n<\/ul>\n

    The RBI has categorised eight different avenues of transaction in which the new guidelines will be applicable, including ATMs, card transactions, immediate payment system, unified payment interface and prepaid cards.
    \nThe timeline for auto-reversal has been set at between one day after the transaction to five days.
    \nMost financial compensations have been set at Rs 100 per day if the reversal does not happen within a specified timeline, the RBI said.<\/p>\n

    General Instructions covering the TAT :<\/p>\n

    1. The principle behind the TAT is based on the following :<\/p>\n

      \n
    1. If the transaction is a \u2018credit-push\u2019 funds transfer and the beneficiary account is not credited while the debit to originator has been effected, then credit is to be effected within the prescribed time period failing which the penalty has to be paid to the beneficiary;<\/li>\n
    2. If there is delay in initiation of a transaction at the originator bank\u2019s end beyond the TAT, then penalty has to be paid to the originator.<\/li>\n<\/ol>\n

      2. A \u2018failed transaction\u2019 is 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.<\/p>\n

      3. Terms like, Acquirer, Beneficiary, Issuer, Remitter, etc., have meanings as per common banking parlance.<\/p>\n

      4. T is the day of transaction and refers to the calendar date.<\/p>\n

      5. R is the day on which the reversal is concluded and the funds are received by the issuer \/ originator. Reversal should be effected at the issuer \/ originator end on the same day when the funds are received from the beneficiary end.<\/p>\n

      6. The term bank includes non-banks also and applies to them wherever they are authorised to operate.<\/p>\n

      7. Domestic transactions i.e., those where both the originator and beneficiary are within India are covered under this framework.<\/p>\n

      Harmonisation of Turn Around Time (TAT) and customer compensation for
      \nfailed transactions using authorised Payment Systems<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
      Sl. no.<\/span><\/td>\nDescription of the incident<\/span><\/td>\nFramework for auto-reversal and compensation<\/span><\/td>\n<\/tr>\n
      Timeline for auto-reversal<\/span><\/td>\nCompensation payable<\/span><\/td>\n<\/tr>\n
      I<\/span><\/td>\nII<\/span><\/td>\nIII<\/span><\/td>\nIV<\/span><\/td>\n<\/tr>\n
      1<\/td>\nAutomated Teller Machines (ATMs) including Micro-ATMs<\/td>\n<\/tr>\n
      a<\/td>\nCustomer\u2019s account debited but cash not dispensed.<\/td>\nPro-active reversal (R) of failed transaction within a maximum of T + 5 days.<\/td>\n\u20b9 100\/- per day of delay beyond T + 5 days, to the credit of the account holder.<\/td>\n<\/tr>\n
      2<\/td>\nCard Transaction<\/td>\n<\/tr>\n
      a<\/td>\nCard to card transfer<\/u><\/p>\n

      Card account debited but the beneficiary card account not credited.<\/p>\n<\/td>\n

      		Transaction to be reversed (R) latest within T + 1 day, if credit is not effected to the beneficiary account.<\/td>\n\u20b9 100\/- per day of delay beyond T + 1 day.<\/td>\n<\/tr>\n
      b<\/td>\nPoint of Sale (PoS) (Card Present) including Cash at PoS<\/u><\/p>\n

      Account debited but confirmation not received at merchant location i.e., charge-slip not generated.<\/p>\n<\/td>\n

      		Auto-reversal within T + 5 days.<\/td>\n\u20b9 100\/- per day of delay beyond T + 5 days.<\/td>\n<\/tr>\n
      c<\/td>\nCard Not Present (CNP) (e-commerce)<\/u><\/p>\n

      Account debited but confirmation not received at merchant\u2019s system.<\/p>\n<\/td>\n<\/tr>\n

      3<\/td>\nImmediate Payment System (IMPS)<\/td>\n<\/tr>\n
      a<\/td>\nAccount debited but the beneficiary account is not credited.<\/td>\nIf unable to credit to beneficiary account, auto reversal (R) by the Beneficiary bank latest on T + 1 day.<\/td>\n\u20b9100\/- per day if delay is beyond T + 1 day.<\/td>\n<\/tr>\n
      4<\/td>\nUnified Payments Interface (UPI)<\/td>\n<\/tr>\n
      a<\/td>\nAccount debited but the beneficiary account is not credited (transfer of funds).<\/td>\nIf unable to credit the beneficiary account, auto reversal (R) by the Beneficiary bank latest on T + 1 day.<\/td>\n\u20b9100\/- per day if delay is beyond T + 1 day.<\/td>\n<\/tr>\n
      b<\/td>\nAccount debited but transaction confirmation not received at merchant location (payment to merchant).<\/td>\nAuto-reversal within T + 5 days.<\/td>\n\u20b9100\/- per day if delay is beyond T + 5 days.<\/td>\n<\/tr>\n
      5<\/td>\nAadhaar Enabled Payment System (including Aadhaar Pay)<\/td>\n<\/tr>\n
      a<\/td>\nAccount debited but transaction confirmation not received at merchant location.<\/td>\nAcquirer to initiate \u201cCredit Adjustment\u201d within T + 5 days.<\/td>\n\u20b9100\/- per day if delay is beyond T + 5 days.<\/td>\n<\/tr>\n
      b<\/td>\nAccount debited but beneficiary account not credited.<\/td>\n<\/tr>\n
      6<\/td>\nAadhaar Payment Bridge System (APBS)<\/td>\n<\/tr>\n
      a<\/td>\nDelay in crediting beneficiary\u2019s account.<\/td>\nBeneficiary bank to reverse the transaction within T + 1 day.<\/td>\n\u20b9100\/- per day if delay is beyond T + 1 day.<\/td>\n<\/tr>\n
      7<\/td>\nNational Automated Clearing House (NACH)<\/td>\n<\/tr>\n
      a<\/td>\nDelay in crediting beneficiary\u2019s account or reversal of amount.<\/td>\nBeneficiary bank to reverse the uncredited transaction within T + 1 day.<\/td>\n\u20b9100\/- per day if delay is beyond T + 1 day.<\/td>\n<\/tr>\n
      b<\/td>\nAccount debited despite revocation of debit mandate with the bank by the customer.<\/td>\nCustomer\u2019s bank will be responsible for such debit. Resolution to be completed within T + 1 day.<\/td>\n<\/tr>\n
      8<\/td>\nPrepaid Payment Instruments (PPIs) \u2013 Cards \/ Wallets<\/td>\n<\/tr>\n
      a<\/td>\nOff-Us transaction<\/u><\/p>\n

      The transaction will ride on UPI, card network, IMPS, etc., as the case may be. The TAT and compensation rule of respective system shall apply.<\/p>\n<\/td>\n<\/tr>\n

      b<\/td>\nOn-Us transaction<\/u><\/p>\n

      Beneficiary\u2019s PPI not credited.<\/p>\n

      PPI debited but transaction confirmation not received at merchant location.<\/p>\n<\/td>\n

      		Reversal effected in Remitter\u2019s account within T + 1 day.<\/td>\n\u20b9100\/- per day if delay is beyond T + 1 day.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

      Source: rbi.org.in<\/p>\n<\/div>\n<\/div><\/div><\/div><\/div><\/div><\/div>","protected":false},"excerpt":{"rendered":"

      The Reserve Bank Friday prescribed a turnaround time (TAT) for banks to settle failed transactions for customers and also notified compensations payable for various types of customer complaints.<\/p>\n","protected":false},"author":1,"featured_media":1202,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[75,38,5,653,292,652,2,71,45],"tags":[59,656,93,727,40,726],"class_list":["post-3817","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-atm","category-banking","category-banking-jobs","category-complaint-management-system","category-complaints","category-grievance-redressal","category-interview","category-payment-systems","category-rbi","tag-atm","tag-customer-complaints","tag-customer-service","tag-failed-atm-transactions","tag-rbi","tag-upi"],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/yourcareerheights.com\/wp-content\/uploads\/2016\/04\/ATM.jpg?fit=213%2C237&ssl=1","jetpack_sharing_enabled":true,"jetpack-related-posts":[],"jetpack_likes_enabled":true,"_links":{"self":[{"href":"https:\/\/yourcareerheights.com\/index.php?rest_route=\/wp\/v2\/posts\/3817","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/yourcareerheights.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/yourcareerheights.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/yourcareerheights.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/yourcareerheights.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=3817"}],"version-history":[{"count":1,"href":"https:\/\/yourcareerheights.com\/index.php?rest_route=\/wp\/v2\/posts\/3817\/revisions"}],"predecessor-version":[{"id":3818,"href":"https:\/\/yourcareerheights.com\/index.php?rest_route=\/wp\/v2\/posts\/3817\/revisions\/3818"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/yourcareerheights.com\/index.php?rest_route=\/wp\/v2\/media\/1202"}],"wp:attachment":[{"href":"https:\/\/yourcareerheights.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=3817"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/yourcareerheights.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=3817"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/yourcareerheights.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=3817"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}