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Last Updated : Sep 20, 2019 09:23 PM IST | Source: Moneycontrol.com

Digital transaction failed? Your bank will now pay you a penalty

The banking regulator has prescribed a penalty of Rs 100 per day to be paid by the bank for delay beyond the timeframe set for auto reversal of such transactions.

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Banks will now have to pay a penalty for all failed digital transaction where the customer is not at fault, according to the new framework laid out by the Reserve Bank of India (RBI).

The banking regulator has prescribed a penalty of Rs 100 per day to be paid by the bank for delay beyond the timeframe set for auto reversal of such transactions.

The norms apply to non-banks as well and for transactions where both originator and beneficiary are based in India.

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A number of times, during funds transfer, the amount is not credited to the receiver but gets deducted from the sender's account. For such transactions, the RBI has set a turnaround time limit for the credit to take place, failing which the penalty will be paid to the receiver.

If there is a delay in initiation of a transaction at the originator bank's end, beyond the prescribed turnaround time, then the penalty has to be paid to the sender.

These norms are applicable to failure in communication links, non-availability of cash in ATMs, time-out 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," the RBI said.

You can check the timeframe set by RBI for reversal along with the prescribed penalties for different types of transactions here.

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First Published on Sep 20, 2019 08:37 pm
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