Hot Deal If your UPI transaction failed then you get compensation from bank

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If your UPI transaction failed then you get compensation from your bank:

NPCI again remind to all banks, if UPI transaction failed and not credit back in given timeline then banks give compensation to customer Rs100 per day.

UPI & IMPS circulation - https://www.npci.org.in/PDF/npci/imps/circular/...

A) Banks Actionable for unsuccessful transactions:

Remitter/Acquirer:

For declined transactions (customer account is debited and declined at NPCI) it is the remitter responsibility to reconcile & reverse customer account if not done in online within T+1, otherwise remitting bank has to pay compensation to customer.

Remitting bank should reverse the customer account on the same day as and when the returns/credit adjustments are received, otherwise remitting bank has to pay compensation to customer.

In case of non-fulfilment of UPI Merchant transactions, acquiring bank should raise returns/ credit adjustments within 4 calendar days from the transaction date, otherwise compensation shall be debited from acquiring bank and credit the same to issuing bank.

Beneficiarv/lssuer:

Bank as a Beneficiary should credit the customer’s account within T+l day (if not credited online), otherwise customer account has to be credited with compensation. Bank to update TCC 102/103.

If the amount cannot be credited due to any reason, same has to be returned to remitting bank on or before 4 pm every day for UPI transactions and 5.30 pm for IMPS transactions by T+l, otherwise NPCI shall debit the beneficiary bank and credit to the remitting bank. Remitting bank should credit their customer account (Transaction amount + Compensation) on same day. If delayed then remitting bank has to pay additional compensation to the customers.

For UPI Merchant transactions, acceptance by acquiring bank for chargeback or pre-arbitration (including deferred chargeback cycle) should be done within 4 days for chargebacks raised under reason code “1065”. If acquiring bank does not accept chargebacks/pre-arbitration within 4 days then NPCI shall debit the acquiring bank and credit issuing bank transaction amount + Compensation. Issuing Bank should credit the amount to the customeds account on the same day or latest by 5th day from the transaction day. If delayed then issuing bank has to pay additional compensation to the customers.

Changes in adiustment / dispute process: For deemed approved P2P IMPS & UPI transactions, Customer compensation shall be applicable in case beneficiary fails to update “RET” as per below table. TAT for raising returns by Beneficiary Bank are highlighted below.

https://cdn0.desidime.com/attachments/photos/646781/medium/7054567MBx2Qsc.jpg?1603987002

Changes in dispute processing:

Condition for customer compensation shall be calculated from transaction date to the customer account credited/reversed date if it is within T+1 for P2P and T+5 for P2M customer compensation will not be applicable (Example:-lf the P2P transaction amount is credited to the customer account on T+3 then customer will be eligible for 100X2=200 rupees compensation, similarly, if P2M transaction amount is credited to the customer account on T+7 then customer will be eligible for 100X2=200 rupees compensation).

https://cdn0.desidime.com/attachments/photos/646782/medium/705456793Ssrin.jpg?1603987007

Note:

Compensation shall not be applicable for wrong credits and fraudulent transactions.

Existing Disputes TAT for chargebacks, re-presentments etc. shall remain same including for new reason codes i.e. failed TXNs at merchant.

New reason code “1065 (P2M) — Account debited but transaction confirmation not received at merchant location” will be introduced in RGCS while raising chargebacks for issuing bank to claim compensation basis the customer information. Penalty shall only be applicable for the new reason code i.e. for failed TXN at merchant. No penalty shall be calculated for exiting reason codes.

Acquiring bank to initiate return/credit adjustments with specific MMT “Account debited but confirmation not received at merchant location” to identify disputes arising due to such failed Transactions.

Where Acquirer/Merchant have failed to initiate a credit adjustment/refund, if the customer lodges a complaint with the Issuing bank, Issuing bank to initiate a chargeback with specific MMT (Member Message Text) as ‘Account debited but confirmation not received at merchant location’ to identify disputes arising due to such failed Transactions.

Till proposed changes are implemented in BO & RGCS, the customer compensation on the disputes/adjustments for transaction from 15th Oct, 2019 shall be calculated as per new RBI circular and settle the same through manual adjustment in regular intervals, details of the same shall be provided to members in report format on regular basis.

NPCI shall provide cycle wise reports even on RTGS holidays. However RTGS settlement shall happen as per RBI RTGS calendar. It should be noted that Banks NDC limit shall be refreshed only once on RTGS holidays.

Changes in Adjustment Report: NPCI shall populate flag “Cust Comp” in SHDT70 column and “ADJ Raise Time” in SHDT71 which helps banks to know the status of compensation.

NTSL reports/DSR: New line item will be introduced in DSR with narration “Customer compensation for Non-compliance” under which compensation value will reflect.

4 Comments  |  
3 Dimers
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Circular from an year back 😮 thanks for sharing bro. But from that time, till date anyone’s transaction got stuck and haven’t got credited back immediately?? If yes did they get their compensation?

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hanu77 wrote:

Circular from an year back 😮 thanks for sharing bro. But from that time, till date anyone’s transaction got stuck and haven’t got credited back immediately?? If yes did they get their compensation?

Yes, some Dimers already confirmed they received compensation from bank.

one dimer received Rs1800 compensation and other dimer received Rs700.

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abhishek012 wrote:

Yes, some Dimers already confirmed they received compensation from bank.

one dimer received Rs1800 compensation and other dimer received Rs700.

Can we claim now if they haven’t credited that? (By mailing to given IDs)

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hanu77 wrote:

Can we claim now if they haven’t credited that? (By mailing to given IDs)

Ofcourse you can. It should be done automatically by the bank and if they have not done, they should once you place a complaint. Write a strong mail to them citing RBI circular.

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