UPI Transaction Failed? Banks To Refund With Rs 100 Fine If Not reversed on Time

The financial year ended on April 1, and all banks in India were closed on that day. As a result, many customers experienced problems transferring money via NEFT, IMPS, and UPI.

According to a Reserve Bank of India (RBI) circular dated September 19, 2019, on the harmonisation of the Turn Around Time (TAT) and customer compensation in case of failed transactions, if money debited from a customer's bank account does not reverse back to the bank account within the specified time period, the bank is liable to pay a penalty of Rs 100 per day.

In a tweet, the National Payments Corporation of India stated that "most of these bank systems have been back to normal since the evening of April 1," adding that "customers may avail uninterrupted IMPS and UPI services."

Several customers, on the other hand, had posted in the reply section that they had not received their money back for a failed transaction. If you've been wondering about the rules for failed transactions, the RBI guideline from October 2019 will come in handy.

According to the circular, if an IMPS transaction fails and the customer account is debited but the beneficiary account is not credited, auto-reversal must be completed within T+1 days of the transaction date.

This means that if a transaction fails today, the money should be credited back to the person who initiated it by the end of the next business day. If the bank fails to credit the amount back to the customer's account by T+1 day, the bank will be charged a penalty of Rs 100 per day for each day that the delay exceeds T+1 day.

The National Payments Corporation of India (NPCI), as part of its Digi-Help stack, has launched 'UPI-Help' on BHIM UPI. Users of the BHIM UPI app would benefit from a superior and hassle-free issue resolution experience thanks to the redressal mechanism.

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