Bank Delayed NEFT, RTGS or IMPS Transaction? Know Your Right to Compensation

If a bank delays your NEFT, RTGS or IMPS transaction after deducting money from your account, you may have the right to receive compensation under RBI guidelines. Banks are required to complete digital payment transactions within prescribed timelines or reverse the amount within the allowed period. If there is an unnecessary delay, customers can raise a complaint and claim compensation for the delay.

What Happens When a Bank Delays a Digital Payment Transaction?

Online banking has made fund transfers faster, but sometimes transactions do not go as smoothly as expected. A customer may see money deducted from the account, but the beneficiary may not receive the amount. In some cases, the transaction remains pending for several hours or even days.

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The Reserve Bank of India (RBI) has issued guidelines for failed and delayed digital payment transactions to protect customers. These rules apply to various payment systems, including NEFT (National Electronic Funds Transfer), RTGS (Real Time Gross Settlement) and IMPS (Immediate Payment Service).

The main objective of these rules is to ensure that customers do not suffer financial loss or inconvenience because of delays caused by banks or payment system issues.

What Is The RBI Rule For Delayed Digital Transactions?

RBI has prescribed a Turn Around Time (TAT) for banks to resolve failed transactions. If a transaction fails and the money is debited from the customer’s account, the bank must either:

• Complete the transaction and credit the amount to the beneficiary.
• Reverse the amount back to the customer’s account within the prescribed timeline.

If the bank fails to do so within the required period, the customer becomes eligible for compensation.

This compensation framework applies because customers should not lose access to their money due to technical failures, banking delays or system-related issues.

Can You Get Compensation For Delayed IMPS Transactions?

Yes, customers can claim compensation if an IMPS transaction is delayed beyond the permitted timeline.

In an IMPS transaction, the amount is usually transferred instantly. However, due to technical issues, the sender’s account may be debited while the beneficiary does not receive the money.

As per RBI guidelines, if the transaction is not completed or reversed within the prescribed timeline, the bank is required to compensate the customer.

The compensation for delayed IMPS transactions is:

• ₹100 per day for delay beyond the prescribed timeline. The compensation is calculated for each day after the bank fails to resolve the transaction within the required period.

For example, if an IMPS transaction fails on Monday and the bank does not reverse the money within the required time, the customer may become eligible for compensation for every additional day of delay.

What Is The Compensation Rule For Delayed NEFT Transactions?

NEFT transactions are processed through scheduled settlement cycles and are generally completed within a short period. However, sometimes a transaction may fail due to technical problems or issues at the bank level.

If the beneficiary account is not credited and the amount is not returned within the prescribed timeline, the affected customer can claim compensation.

For delayed NEFT transactions:

• The bank is required to pay penal interest for the delay period. This interest is calculated at the RBI prescribed rate, generally linked with the RBI Liquidity Adjustment Facility (LAF) Repo Rate plus additional percentage points.

This means that banks cannot keep customer funds without accountability. If the delay happens due to the bank’s failure to process the transaction, the customer has a right to seek compensation.

What Are Your Rights In A Delayed RTGS Transaction?

RTGS transactions are mainly used for high-value fund transfers where money is transferred individually on a real-time basis.

Although RTGS transactions are designed to be completed quickly, delays can still happen because of technical issues, incorrect processing or system failures.

If a RTGS transaction is unsuccessful:

• The bank must ensure that the amount is either credited to the beneficiary or returned to the customer’s account within the applicable timeline.
• If the delay occurs beyond the permitted period, the customer can approach the bank and demand resolution along with applicable compensation.

Customers should not assume that once money is deducted, they have no option. Banking regulations provide protection against such delays.

How Long Can A Bank Take To Reverse A Failed Transaction?

The time taken to reverse a failed transaction depends on the type of payment system involved.

For digital payment transactions, RBI has prescribed specific timelines within which banks must resolve failed transactions.

Generally:

• IMPS transactions: The amount should be credited or reversed within the prescribed timeline, failing which compensation may become applicable.
• NEFT transactions: Failed transactions should be returned within the prescribed period, failing which penal interest may be payable.
• RTGS transactions: Banks must follow RBI timelines for returning failed transactions.

The exact timeline may depend on the nature of the transaction and the reason for failure.

How Can You Claim Compensation From Your Bank?

In many cases, banks are expected to provide compensation automatically. However, customers should not ignore delays. Keeping proper records can help in making a strong complaint.

Follow these steps:

• Keep Transaction Details Safe: Save the transaction reference number, date, amount, bank statement entry and screenshots showing the deduction or failed transaction.
• Raise A Written Complaint: Contact the bank through email, customer care or branch visit and clearly mention that the complaint relates to delayed digital payment settlement.
• Ask For Compensation Under RBI Guidelines: Mention that the transaction was delayed beyond the permitted timeline and request applicable compensation.
• Escalate If The Bank Does Not Respond: If the bank fails to resolve the complaint, the matter can be taken to the RBI Integrated Ombudsman Scheme through the RBI Complaint Management System.

Can Banks Refuse To Pay Compensation For Transaction Delay?

Banks cannot refuse compensation when the delay falls under RBI rules and occurs due to reasons covered by the guidelines.

However, compensation may not apply in every situation. For example, delays caused due to incorrect details provided by the customer, issues outside the banking system or circumstances not covered under the applicable rules may be treated differently.

Therefore, it is important to understand whether the delay happened because of the bank’s failure or due to another reason.

What Details Should You Mention While Complaining To The Bank?

A properly drafted complaint increases the chances of faster resolution. The complaint should include:

• Transaction date and time.
• Transaction type (NEFT, RTGS or IMPS).
• Amount transferred.
• Transaction reference number.
• Details of the issue faced.
• Request for reversal of funds and payment of applicable compensation.

Customers should always keep a copy of the complaint and acknowledgement received from the bank.

Conclusion

A delayed NEFT, RTGS or IMPS transaction does not mean that customers have to simply wait without any remedy. RBI has created rules requiring banks to complete failed transactions, reverse money within the prescribed timeline and provide compensation in cases of unreasonable delay. Understanding these rights helps customers take timely action and hold banks accountable for delays in digital payments.