The Reserve Bank of India (RBI) has released a framework for turnaround time (TAT) for failed transactions and compensation for customers, saying this will bring in uniformity in the processing of the failed transactions.
The central bank also prescribed auto reversal timelines for failed transactions. In such cases where a customer’s account has been debited but cash not dispensed from an automated teller machine (ATM), the bank will have to pro-actively reverse failed transactions within a maximum of T + 5 days or within five days of the failed transaction. Failing to reverse within five days will lead to the bank paying Rs 100 per day to the account holder.
In the case of point of sale (PoS) transactions and including cash at PoS, where an account is debited but confirmation not received at the merchant location or charge-slip not generated, the same five-day reversal period has been granted. For Immediate Payment System (IMPS) and Unified Payments Interface (UPI) transactions, the central bank has asked banks to reverse it within a day of the failed transaction.