ATM, debit card transactions failed latest compensation guidelines

You must have faced the issue of failed debit card transaction where the amount gets debited but the beneficiary's account not credited. In order to resolve such issues, Reserve Bank of India (RBI) has come up with new
guidelines to resolve failed ATM, swipe machine and Aadhar Enabled Payments (AEPS) transactions. It has also outlined the compensation guidelines in case of a delay in reversing the failed transaction. 

It may be noted that a failed transaction is when an account gets debited but the payment is no registered. "It has been observed that a large number of customer complaints emanate on account of unsuccessful or 'failed' transactions," the RBI said. "Failure should be on account of various factors not directly attributable to the customer such as disruptions of communication links, non-availability of cash in ATMs, time out of sessions, non-credit to beneficiary's due to various causes, etc."

It further added, "After consultation with various stakeholders, the framework for TAT for failed transactions and compensation, therefore, has been finalised which will result in customer confidence and bring in uniformity in the processing of the failed transactions."

1. In case the customer's account is debited but cash not dispensed from ATM, the financial institution will have to reverse the failed transaction within a maximum of transaction date plus five days. If it fails to reverse the transaction during these days, they have to pay a compensation of Rs 100 per day of delay beyond T + 5 days to the credit of the account holder.

2. In case of a card to card transfer, if the customer’s card account is debited but the beneficiary card account not credited, the financial institutions have to reverse the transaction within T + 1 day. In case it fails to reverse the transaction or amount is not credited to the beneficiary account within this time period, then Rs 100 per day compensation will be paid for delay beyond T + 1 day.

3. At the point of sales (PoS), including cash at PoS, if the customer’s account has been debited but confirmation not received at the merchant location (i.e. charge-slip not generated), the transaction will be auto-reversed within T + 5 days. Otherwise, a compensation Rs 100 per day of delay beyond T + 5 days will be paid.

4. In the case of Immediate Payment System (IMPS), if the customer's account is debited but the beneficiary account is not credited, banks will have to do an auto reversal in T+1 days. Otherwise, a compensation Rs 100 per day of delay beyond T+1 days will be paid.