In April this year, the central bank announced rationalization of turnaround time (TAT) for resolving consumer complaints as well as compensation as it viewed that the time taken for such resolution varied across payment systems.
Yet again on Friday, the Reserve Bank of India specified a turnaround time for banks to resolve disputes concerning failed transactions as well as provided for compensation that would be payable in respect of different consumer complaints.
The financial compensation should be made suo moto by the bank, without any waiting time for the complaint or claim request by customer, said the central bank.
"To have prompt and efficient customer service in all electronic payment systems, it is necessary to harmonise the TAT of resolution of customer complaints and charge-backs, and to have a compensation framework in place for the benefit of customers," the RBI had said.
For the transaction failure, the timeline for auto-reversal of funds has been placed at between one to 5 days from the transaction date. Further, the compensation has been notified at Rs. 100 per day for most transactions if the reversal is not made within the said time period.
For increasing customer confidence as well as to have in place a uniform system of resolution for such failed transactions, the RBI has categorized 8 different type of transactions such as ATMs, card transactions, immediate payment system, unified payment interface (UPI) and prepaid cards.
Customers who do not receive redressal as per the specified new TAT rules can place their complaints before the banking ombudsman.