This has been the demand for some time and RBI has now made some changes. It must be remembered; failed transactions are incomplete transactions for any reason not attributable to the customer and could be for reasons like failure in communication links, non-availability of cash in an ATM, time-out of sessions, server crash, power cut etc. The following are the new rules announced by the RBI in this regard.

a) Firstly, in case of ATM transactions where customer’s account has been debited but cash not dispensed, the bank will have to reverse the failed transaction within 5 days, failing which the bank will have to pay a compensation of ₹100 per day. This will include transactions at micro ATMs, other bank ATMs and also mobile ATMs .

b) For failed card to card transfer transactions if the customer’s card is debited but the beneficiary card is not credited, the bank must reverse the transaction within 1 day, failing which Rs.100 per day compensation has to be paid. Also, any failed IMPS transaction will have to be reversed within 1 day.

c) At point-of-sale (POS) debit card transactions, if the customer account is debited but confirmation not received at merchant outlet or charge-slip is not generated, then the transaction must be reversed in 5 days failing which compensation of Rs.100 per day is payable. The same rule will apply to e-commerce and internet transactions also.