Banking regulator the Reserve Bank of India has strengthened its norms and advised the lenders to set a turnaround time (TAT) for the resolution of failed customer transactions.
The central bank also notified the lenders regarding the compensation payable for several categories of customer-related grievances. As per the new rules, the banks will now have to make the financial compensations suo moto, without waiting for a complaint or claim raised by a customer.
The new guidelines will be effective in eight different modes of transaction names ATMs, card transactions, immediate payment system, unified payment interface, and prepaid cards.
The banks will be given a deadline to auto-reverse the amount in between one day after the transaction to five days. The RBI also stated that financial compensations of Rs 100 per day have to be paid if reverse fails to take place within the specified timeline.
It also made a rule for the customers to lodge a complaint to the banking ombudsman in case they fail to get the benefits of redress of the failure as defined in the TAT.
The decision is expected to boost the customer’s confidence and to have a uniformity in resolving the failed transactions, the RBI said.
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