RBI rules on delayed refunds allow customers to receive ₹100 per day in compensation when certain failed transactions are not reversed within the prescribed time limit.
The rule applies to eligible transactions such as failed UPI payments, unsuccessful ATM cash withdrawals and certain card transactions where money is debited but the transaction is not completed.
The Reserve Bank of India (RBI) introduced a standard framework to ensure that customers receive refunds within defined timelines.
When a bank or other authorised payment system fails to meet the applicable deadline, compensation may become payable for each day of delay.
RBI Rules on Delayed Refunds: When Is ₹100 Payable?
The compensation depends on the type of transaction and the applicable turnaround time. Customers should not assume that every delayed payment follows the same deadline.
For eligible UPI fund transfers and IMPS transactions where the sender’s account is debited but the beneficiary does not receive the money, the reversal generally must be completed by T+1 day.
If the amount is not reversed within the prescribed period, compensation of ₹100 per day of delay may apply.
For ATM withdrawals where the account is debited but cash is not dispensed, the bank must reverse the transaction within a maximum of T+5 days.
A delay beyond this period can attract compensation of ₹100 per day.
Certain card and merchant transactions also have specific reversal deadlines.
For example, eligible point-of-sale transactions in which the account is debited but confirmation is not received at the merchant’s end may qualify for reversal within T+5 days, with compensation for delays beyond the applicable deadline.
Here, T refers to the date of the transaction. The exact deadline depends on the transaction category and the RBI framework applicable to it.
Do Banks Have to Pay Compensation Automatically?
Yes. Under the RBI framework for eligible failed payment transactions, compensation is to be credited automatically to the customer’s account.
Customers should not have to wait for a separate claim to be approved before receiving compensation due under these rules.
However, customers should keep their transaction reference number, bank statement, payment confirmation and any complaint reference if the refund remains pending.
These details can help the bank investigate the transaction and establish whether the prescribed deadline has been missed.
If the refund has been processed but the applicable compensation has not been credited, customers can contact their bank and request clarification.
They should ask for the transaction status, the applicable reversal deadline and the reason for any delay.
What Should You Do If Your Refund Is Delayed?
Customers should first check their bank statement and payment application to confirm whether the money was returned. A failed payment notification does not necessarily mean the refund has already reached the account.
If the amount remains missing beyond the applicable deadline, contact the bank through its official customer-care channel or branch.
Provide the transaction ID, date, amount and relevant account details through secure channels, and retain a copy of the complaint.
If the bank does not resolve the complaint satisfactorily, customers may be able to approach the RBI’s Complaint Management System under the applicable RBI Integrated Ombudsman Scheme, subject to the scheme’s eligibility and procedural requirements.
Customers should use official RBI and bank channels rather than relying on messages or calls claiming that a refund can be released only after sharing an OTP, PIN or password.
Banks do not need these confidential credentials to process a legitimate refund.
Which Transactions Are Covered by the RBI Framework?
The RBI’s framework covers specified failed transactions carried out through authorised payment systems in India.
These include eligible ATM transactions, UPI payments, IMPS transfers, certain card payments and other payment categories listed in the relevant directions.
The rules do not mean that every payment dispute or every delayed refund automatically qualifies for ₹100 per day.
The transaction must fall within a covered category, and the prescribed reversal or settlement deadline must have been breached under the applicable rules.
Customers should therefore check the specific transaction type before calculating compensation.
Understanding the applicable deadline can help them follow up with the bank and identify whether compensation is due.
