(Photo Credit: Representative)
The Reserve Bank of India (RBI) has put in place a new set of rules regarding turnaround time for banks to settle failed transactions, including those in which a customer, who tries to withdraw money from an ATM, has his account debited but no cash is withdrawn.
According to the rules, banks have to pay to customers in case their money is not refunded within a specified period of time. Earlier, the RBI said that failed ATM transactions due to issues like shortage of cash, invalid PIN or other non-cash withdrawals can’t be considered as ‘free transactions’.
The new rules say if an ATM machine does not tender money and amount gets deducted from your account then your bank or financial institution will have five days to sort out the issue failing which a fine of Rs 100 per day will be chargeable till the matter is sorted out. This amount will be credited in your account. RBI guidelines say that the same method will be applicable in case of micro-ATMs.
Similarly, at PoS (Point of Sale) transaction, that is, card-swiping at a shop, if the amount is deducted from your account but confirmation is not sent to the merchant (slip is not printed), the bank will have to auto-reverse the amount in five days. If this doesn't happen, a fine of Rs 100 per day will be levied on the bank.
The same method will be applied for failed transaction at an e-commerce website. A failed transaction will attract a fine of Rs 100 per day beyond five-day-window given to the bank to solve the matter.