Failed UPI payments, unsuccessful ATM withdrawals and other payment errors can qualify for ₹100 per day in compensation if refunds exceed RBI's prescribed deadlines. Know the T+1 and T+5 rules, how turnaround time is calculated and what to do if your refund is delayed.
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Suppose you make a UPI payment to a friend or merchant, or withdraw cash from an ATM, but the transaction fails even though your bank account is debited. If the money is not returned within the prescribed time, you may be entitled to compensation of ₹100 per day for the delay under Reserve Bank of India (RBI) rules.
The compensation depends on the type of transaction and the deadline prescribed for reversing the amount. Here is what customers need to know.
What is considered a failed transaction?
According to RBI's circular, Harmonisation of Turn Around Time (TAT) and customer compensation for failed transactions using authorised Payment Systems, dated September 20, 2019, a failed transaction is one that is not completed for reasons not attributable to the customer.
These may include communication failures, an ATM running out of cash, a session timing out, or money not reaching the beneficiary's account despite the sender's account being debited. The framework also covers certain delays in crediting money or initiating a reversal.
The rules came into effect on October 15, 2019, and cover domestic transactions where both the sender and the beneficiary are in India. The term bank also includes authorised non-bank payment service providers, wherever applicable.
RBI states that the prescribed turnaround time is the outer limit for resolving a failed transaction. If compensation is payable, it must be credited automatically, without waiting for the customer to file a claim.
How many days do you get ₹100 per day for a delayed refund?
The deadline varies by payment method. For some transactions, the amount must be reversed by T+1 day, while others have a T+5-day deadline.
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