In a gigantic move serving to the best interest of customers, the Reserve Bank of India on Friday announced norms regarding a prescribed turnaround time (TAT) for banks to settle any kind of failed transactions for customers and also notified compensations payable for various types of customer complaints.
RBI aims to bring in uniformity while processing failed bank transactions, to harmonize efficient customer service in all electronic payment systems, for the benefit of customers.
Banks to Be Charged for Rs 100 per Day Post TAT
This April, the RBI had first announced a move to harmonise TAT for resolving customer complaints and compensation after observing that time taken for resolving customer complaint varies across payment systems.
On Friday, it finally announced its decision to make it public. Customers can now demand from compensation from banks, in case of any failed transaction encounters. RBI looks forward to banks to implement this service. The failure in honoring transactions could include the bank’s ATM out of cash or unable to dispense cash though you have money in your account.
In fact, the financial compensation should be done suo motu by the bank, without waiting for a complaint or a claim by a customer, as per the directive from RBI. In fact, the RBI takes such redressals so seriously that if a bank fails to revert to the aggrieved customer and make good the error regarding the failed transaction, it will have to pay a penalty of Rs 100 per day after the stipulated time period.
How is This For the Benefit of Customers?
Bank and finance related issues are often extended and take a lot of time. In order to harmonise TAT so as to resolve customer complaints and pay the compensation on time, the RBI has announced each bank to implement this wonderful idea. As per this:
- Customers are now eligible for a compensation from the bank, in case of any failure in transactions.
- Banks will have a fixed turnaround time for each of such electronic failed transactions, within which they’ll have to revert to the concerns of delegated customer, even if the customer has not registered a complaint.
- The RBI has categorized 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.
- The timeline for auto-reversal has been set from 1 day to 5 days, depending on the service involved.
- Shall the bank not settle the compensation within these numbered days, it will have to pay a penalty of Rs 100 per day of delay to the account holder.
- If the bank fails to meet these obligations, the customers can approach the banking ombudsman.
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