UPI, IMPS bank transfer failed? When you will get refund, what to do if you don't?

UPI, IMPS bank transfer failed? When you will get refund, what to do if you don't?

• By Staff Writer

UPI, IMPS bank transfer failed? When you will get a refund, what to do if you don't

April 1 was the financial year closing, and banks were shut on that day. Due to this, many customers of various banks faced issues related to the transfer of money via NEFT, IMPS, and UPI. As per a tweet by the National Payments Corporation of India (NPCI): The Financial year-end closing had led to some UPI and IMPS transaction failures at few banks. We have observed that most of these bank systems are back to normal since last evening. Customers may avail of uninterrupted IMPS and UPI services.

However, as per replies by customers to the NPCI tweet, many whose transactions failed are still waiting for the amount to be credited back into bank accounts,  after two days.

So, now the question that many will be asking is how long does it take for the amount to be reversed back to the bank account in case of a failed NEFT, RTGS, or UPI transaction?

The Reserve Bank of India (RBI) issued a circular dated September 19, 2019, on the harmonization of the Turn Around Time (TAT) and customer recompense in case of failed transactions. As per the circular, if the money debited from the customer's bank account does not reverse back to the bank account within the specified time period, due to a failed transaction, then the bank is liable to pay a penalty of Rs 100 per day to the customer.

As per the circular, in case of failure of an IMPS transaction where customer account is debited but the beneficiary account is not credited, auto-reversal must be done in T+1 day, where T refers to the transaction date. What it means is that if a transaction fails today, the amount should be credited back to the account of the person initiating the transaction by the end of the next working day. If the bank does not credit the amount back to the customer's account by T+1 day, then the bank is liable to pay a penalty of Rs 100 per day for the delay beyond T+1 day.

Similarly, in the case of transfer via UPI, where the bank account is debited but the beneficiary account is not credited, then auto-reversal must be done by the beneficiary bank by T+1. If not done, then the penalty of Rs 100 per day beyond T+1 is levied.

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