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Harmonisation of Turn Around Time (TAT) and customer compensation for failed transactions using authorised Payment Systems
General Instructions covering the TAT :1. The principle behind the TAT is based on the following :If the transaction is a ‘credit-push’ funds transfer and the beneficiary account is not credited while the debit to originator has been effected, then credit is to be effected within the prescribed time period failing which the penalty has to be paid to the beneficiary;If there is delay in initiation of a transaction at the originator bank’s end beyond the TAT, then penalty has to be paid to the originator.2. A ‘failed transaction’ is a transaction which has not been fully completed due to any reason not attributable to the customer such as failure in communication links, non-availability of cash in an ATM, time-out of sessions, etc. Failed transactions shall also include the credits which could not be effected to the beneficiary account on account of lack of full information or lack of proper information and delay in initiating a reversal transaction.3. Terms like, Acquirer, Beneficiary, Issuer, Remitter, etc., have meanings as per common banking parlance.4. T is the day of transaction and refers to the calendar date.5. R is the day on which the reversal is concluded and the funds are received by the issuer / originator. Reversal should be effected at the issuer / originator end on the same day when the funds are received from the beneficiary end.6. The term bank includes non-banks also and applies to them wherever they are authorised to operate.7. Domestic transactions i.e., those where both the originator and beneficiary are within India are covered under this framework. Harmonisation of Turn Around Time (TAT) and customer compensation for failed transactions using authorised Payment Systems
Sr no.Description of the incidentFramework for auto-reversal and compensationTimeline for auto-reversalCompensation payableIIIIIIIV1Automated Teller Machines (ATMs) including Micro-ATMsaCustomer’s account debited but cash not dispensed.Pro-active reversal (R) of failed transaction within a maximum of T + 5 days.₹ 100/- per day of delay beyond T + 5 days, to the credit of the account holder.2Card TransactionaCard to card transfer
Card account debited but the beneficiary card account not credited.Transaction to be reversed (R) latest within T + 1 day, if credit is not effected to the beneficiary account.₹ 100/- per day of delay beyond T + 1 day.bPoint of Sale (PoS) (Card Present) including Cash at PoS
Account debited but confirmation not received at merchant location i.e., charge-slip not generated.Auto-reversal within T + 5 days.₹ 100/- per day of delay beyond T + 5 days.cCard Not Present (CNP) (e-commerce)
Account debited but confirmation not received at merchant’s system.3Immediate Payment System (IMPS)aAccount debited but the beneficiary account is not credited.If unable to credit to beneficiary account, auto reversal (R) by the Beneficiary bank latest on T + 1 day.₹100/- per day if delay is beyond T + 1 day.4Unified Payments Interface (UPI)aAccount debited but the beneficiary account is not credited (transfer of funds).If unable to credit the beneficiary account, auto reversal (R) by the Beneficiary bank latest on T + 1 day.₹100/- per day if delay is beyond T + 1 day.bAccount debited but transaction confirmation not received at merchant location (payment to merchant).Auto-reversal within T + 5 days.₹100/- per day if delay is beyond T + 5 days.5Aadhaar Enabled Payment System (including Aadhaar Pay)aAccount debited but transaction confirmation not received at merchant location.Acquirer to initiate “Credit Adjustment” within T + 5 days.₹100/- per day if delay is beyond T + 5 days.bAccount debited but beneficiary account not credited.6Aadhaar Payment Bridge System (APBS)aDelay in crediting beneficiary’s account.Beneficiary bank to reverse the transaction within T + 1 day.₹100/- per day if delay is beyond T + 1 day.7National Automated Clearing House (NACH)aDelay in crediting beneficiary’s account or reversal of amount.Beneficiary bank to reverse the uncredited transaction within T + 1 day.₹100/- per day if delay is beyond T + 1 day.bAccount debited despite revocation of debit mandate with the bank by the customer.Customer’s bank will be responsible for such debit. Resolution to be completed within T + 1 day.8Prepaid Payment Instruments (PPIs) – Cards / WalletsaOff-Us transaction
The transaction will ride on UPI, card network, IMPS, etc., as the case may be. The TAT and compensation rule of respective system shall apply.bOn-Us transaction
Beneficiary’s PPI not credited.
PPI debited but transaction confirmation not received at merchant location.Reversal effected in Remitter’s account within T + 1 day.₹100/- per day if delay is beyond T + 1 day. Thanks & Regards Disha
