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Failed UPI transactions? Banks to pay Rs 100 per day penalty for delay beyond 2 days
If you too have been wondering on the rules pertaining to failed transaction, here is the elaborate RBI guideline, for all the details of refund and penalty thereof.
Highlights
- RBI guideline on failed transaction.
- Reversal on failed UPI transaction.
- Year end closing transaction failures.
New Delhi: On April 1, the Financial Year end closing had led to some UPI and IMPS transaction failures at few banks.
The National Payments Corporation of India in a tweet said that it had have observed that most of these bank systems are back to normal since the evening of April 1 while customers may avail uninterrupted IMPS and UPI services.
However, in the reply section, several customers had posted queries of not receiving their failed transaction money back. If you too have been wondering on the rules pertaining to failed transaction, the RBI guideline dated October 2019 will be of good help.
As per RBI guideline on Harmonisation of Turn Around Time (TAT) and customer compensation for failed transactions using authorised Payment Systems, for failed UPI transactions, if the bank is unable to credit the beneficiary account, auto reversal (R) by the Beneficiary bank latest on T + 1 day, Rs 100 per day penalty will be paid if delay is beyond T + 1 day.
| Sl. no. | Description of the incident | Framework for auto-reversal and compensation | |
|---|---|---|---|
| Timeline for auto-reversal | Compensation payable | ||
| I | II | III | IV |
| 1 | Automated Teller Machines (ATMs) including Micro-ATMs | ||
| a | Customer’s account debited but cash not dispensed. | Pro-active reversal (R) of failed transaction within a maximum of T + 5 days. | ₹ 100/- per day of delay beyond T + 5 days, to the credit of the account holder. |
| 2 | Card Transaction | ||
| a | Card to card transfer
Card account debited but the beneficiary card account not credited. |
Transaction to be reversed (R) latest within T + 1 day, if credit is not effected to the beneficiary account. | ₹ 100/- per day of delay beyond T + 1 day. |
| b | Point of Sale (PoS) (Card Present) including Cash at PoS
Account debited but confirmation not received at merchant location i.e., charge-slip not generated. |
Auto-reversal within T + 5 days. | ₹ 100/- per day of delay beyond T + 5 days. |
| c | Card Not Present (CNP) (e-commerce)
Account debited but confirmation not received at merchant’s system. |
||
| 3 | Immediate Payment System (IMPS) | ||
| a | Account debited but the beneficiary account is not credited. | If unable to credit to beneficiary account, auto reversal (R) by the Beneficiary bank latest on T + 1 day. | ₹100/- per day if delay is beyond T + 1 day. |
| 4 | Unified Payments Interface (UPI) | ||
| a | Account debited but the beneficiary account is not credited (transfer of funds). | If unable to credit the beneficiary account, auto reversal (R) by the Beneficiary bank latest on T + 1 day. | ₹100/- per day if delay is beyond T + 1 day. |
| b | Account debited but transaction confirmation not received at merchant location (payment to merchant). | Auto-reversal within T + 5 days. | ₹100/- per day if delay is beyond T + 5 days. |
| 5 | Aadhaar Enabled Payment System (including Aadhaar Pay) | ||
| a | Account debited but transaction confirmation not received at merchant location. | Acquirer to initiate “Credit Adjustment” within T + 5 days. | ₹100/- per day if delay is beyond T + 5 days. |
| b | Account debited but beneficiary account not credited. | ||
| 6 | Aadhaar Payment Bridge System (APBS) | ||
| a | Delay in crediting beneficiary’s account. | Beneficiary bank to reverse the transaction within T + 1 day. | ₹100/- per day if delay is beyond T + 1 day. |
| 7 | National Automated Clearing House (NACH) | ||
| a | Delay in crediting beneficiary’s account or reversal of amount. | Beneficiary bank to reverse the uncredited transaction within T + 1 day. | ₹100/- per day if delay is beyond T + 1 day. |
| b | Account debited despite revocation of debit mandate with the bank by the customer. | Customer’s bank will be responsible for such debit. Resolution to be completed within T + 1 day. | |
| 8 | Prepaid Payment Instruments (PPIs) – Cards / Wallets | ||
| a | Off-Us transaction
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. |
||
| b | On-Us transaction
Beneficiary’s PPI not credited. PPI debited but transaction confirmation not received at merchant location. |
Reversal effected in Remitter’s account within T + 1 day. | ₹100/- per day if delay is beyond T + 1 day. |
The term bank includes non-banks also and applies to them wherever they are authorised to operate. Domestic transactions i.e., those where both the originator and beneficiary are within India are covered under this framework, RBI says.