Question about RBI TAT rules and compensation

[blacktiger]

RBI brought in a rule for banks to provide compensation for customers, if the failed transactions are not reverted within stipulated timeframe (https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=11693). My debit card transaction failed few months back with Indusind mastercard, and it took like 20 days for amount to get reverted. The phone customer support told the maximum duration for mastercard to revert is 45 days, when I told them about RBI notification they had no clue. Today similar thing happened with bank of baroda card with visa network, they told the max time is 60days for complaint to get resolved. But they said nothing about compensation.

Has anyone successfully got compensation for banks missing the TAT times, ? What has been your experience?

 

[SubhankarSubhankar is verified member.]

You can definitely go to RBI, but before that you need to put up a mail to the highest escalation (PNO) of the respective bank and wait for 30 days. If the issue get resolved within the timeframe mentioned by RBI, it's fine, or else you can go ahead and put up a complaint by claiming compensation from the respective bank. But only after 30 days, you can shoot this mail to RBI even if you get the amount credited before that but not before the mentioned time frame

 

[vasanth_ece]

Query is 30 days from initial time of raising the complaint with the bank or 30 days after raising complain to highest escalation within the bank?

There is level1 ,level1 escalation before going to pno..So do we need to wait 30 days after final escalation to pno?
Please clarify

 

[Pradeepbansal]

Query is 30 days from initial time of raising the complaint with the bank or 30 days after raising complain to highest escalation within the bank?

There is level1 ,level1 escalation before going to pno..So do we need to wait 30 days after final escalation to pno?
Please clarify

different banks have different escalation matrix. it is not complainant's job or RBI's job to see how many escalation matrix each bank has.

the rule says simply that you can approach RBI ombudsman 30 days after complaining to the bank. that complaint can be made anywhere with any mode, physical, electronic, etc. just take a proof of it with you and file complaint to RBI.

DO NOT WAIT FOR REPLY OR WAIT TO APPROACH ALL ESCALATION MATRIX OF THE BANK. IF 30 DAYS ARE OVER FROM YOUR INITIAL COMPLAINT, FILE COMPLAINT WITH RBI.

 

[Pradeepbansal]

RBI brought in a rule for banks to provide compensation for customers, if the failed transactions are not reverted within stipulated timeframe (https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=11693). My debit card transaction failed few months back with Indusind mastercard, and it took like 20 days for amount to get reverted. The phone customer support told the maximum duration for mastercard to revert is 45 days, when I told them about RBI notification they had no clue. Today similar thing happened with bank of baroda card with visa network, they told the max time is 60days for complaint to get resolved. But they said nothing about compensation.

Has anyone successfully got compensation for banks missing the TAT times, ? What has been your experience?

do not hesitate to ask for compensation. it is your right. again file a complaint against the bank in RBI ombudsman citing this very circular and asking for compensation from the bank. keep us posted of the developments

 

[blacktiger]

Query is 30 days from initial time of raising the complaint with the bank or 30 days after raising complain to highest escalation within the bank?

There is level1 ,level1 escalation before going to pno..So do we need to wait 30 days after final escalation to pno?
Please clarify

its 30 days from contacting bank. even an email sent to bank customer care can be taken as contacting the bank.

 

[VijayflyRaven]

I am in same situation and end of this month it will be 30 days. I made a big basket transaction using Indusind Mastercard for 20% off.

Has anyone got the compensation? I have clear email sent to customer care as well as PNO. They close the ticket every few days. That is all they do. Big basket sent the refund but the refund failed and I am told to contact my bank.

If anyone has received compensation, please post about it. Lesson learnt is to avoid debit cards. Waiting for 60 days is little too much.

 

[VISHESH_BANSAL]

I am in same situation and end of this month it will be 30 days. I made a big basket transaction using Indusind Mastercard for 20% off.

Has anyone got the compensation? I have clear email sent to customer care as well as PNO. They close the ticket every few days. That is all they do. Big basket sent the refund but the refund failed and I am told to contact my bank.

If anyone has received compensation, please post about it. Lesson learnt is to avoid debit cards. Waiting for 60 days is little too much.

You still did not got ARN ?

And yes Banks compensate .

Once I helped my friend and he got 2k from Central Bank of India for a failed UPI txn.

Since Amount is small,
I asked him do not raise complaint Immediately wait for some day to get Rs 100/ day.

Finally He got Rs.2k as Compensation.

Central Bank of India got a chunna of 2k free fund m.

 

[VijayflyRaven]

You still did not got ARN ?

And yes Banks compensate .

Once I helped my friend and he got 2k from Central Bank of India for a failed UPI txn.

Since Amount is small,
I asked him do not raise complaint Immediately wait for some day to get Rs 100/ day.

Finally He got Rs.2k as Compensation.

Central Bank of India got a chunna of 2k free fund m.

I got the refund showing as processing in payu. My bank which is Indusind was not able to give me the ARN. I also asked bigbasket for ARN but did not get it. I tried 5 to 6 agents via email and nobody had the answer. Finally it seems my bank declined the refund and refund failed. I have asked my bank why they declined to accept refund. No response. I am hoping to get compensation and first time with RBI.

 

[VISHESH_BANSAL]

I got the refund showing as processing in payu. My bank which is Indusind was not able to give me the ARN. I also asked bigbasket for ARN but did not get it. I tried 5 to 6 agents via email and nobody had the answer. Finally it seems my bank declined the refund and refund failed. I have asked my bank why they declined to accept refund. No response. I am hoping to get compensation and first time with RBI.

Ask payu directly over twitter.

Share them Txn Details.

If you have Payu ID of that particular txn then it is enough.

Otherwise share Txn Amount, date, Merchnat Name Card Last 04 or 06 digits as required by them.

 

[VijayflyRaven]

I asked payu using their ticket system with the transaction ID. They mentioned that my bank rejected refund due to chargeback. I still don’t understand why they rejected refund which is the reason for dispute.

Another interesting fact is chargeback was closed by my bank stating that merchant settled.

Ask payu directly over twitter.

Share them Txn Details.

If you have Payu ID of that particular txn then it is enough.

Otherwise share Txn Amount, date, Merchnat Name Card Last 04 or 06 digits as required by them.

 

[VISHESH_BANSAL]

I asked payu using their ticket system with the transaction ID. They mentioned that my bank rejected refund due to chargeback. I still don’t understand why they rejected refund which is the reason for dispute.

Okay so that is the Case.

For a failed DC/CC txn and Amount debited either do one of the following:-

1.
Get ARN from Bank and share this with Merchant. Merchant will initiate the refund after validating with Gateway.

I did the Same for My Bigbasket Txn

2.
Second Option is to raise the chargeback with Bank. Since chargeback take its own sweet time 1st option is always best.


Now you requested Merchant for refund and Asked the Bank for chargeback also.

So in this case Bank and Gateway/Merchant will follow the chargeback process only and will reject the refund request.

I learnt this in a Hard way with SBI.

With SBI I raised a Chargeaback and Refund request also with Merchant.

After two days Merchant Closed my request stating that since you already raised a chargeback, we have to follow and Complete chargeback Process only.

If chargeback was not initiated by me, I would have got my refund on 2nd day itself from Merchant which took 2 weeks with Chargeback Process of SBI.

 

[VijayflyRaven]

Okay so that is the Case.

For a failed DC/CC txn and Amount debited either do one of the following:-

1.
Get ARN from Bank and share this with Merchant. Merchant will initiate the refund after validating with Gateway.

I did the Same for My Bigbasket Txn

2.
Second Option is to raise the chargeback with Bank. Since chargeback take its own sweet time 1st option is always best.


Now you requested Merchant for refund and Asked the Bank for chargeback also.

So in this case Bank and Gateway/Merchant will follow the chargeback process only and will reject the refund request.

I learnt this in a Hard way with SBI.

With SBI I raised a Chargeaback and Refund request also with Merchant.

After two days Merchant Closed my request stating that since you already raised a chargeback, we have to follow and Complete chargeback Process only.

If chargeback was not initiated by me, I would have got my refund on 2nd day itself from Merchant which took 2 weeks with Chargeback Process of SBI.

I learnt it the hard way. Unfortunately bigbasket asked me to raise chargeback before they agreed to issue refund. I followed all the instructions given by merchant and bank.

I hope I am still eligible for the compensation of 100 rupees per day.

 

[VISHESH_BANSAL]

I learnt it the hard way. Unfortunately bigbasket asked me to raise chargeback before they agreed to issue refund. I followed all the instructions given by merchant and bank.

If you further esclate with Bigbasket by sharing ARN and ask them to give in Written "Bigbasket did not received Amount of Rs.XXX dated..... against ARN..............
Then Bigbasket would definitely refunded it directly

I followed instructions as given by Axis Customer Care Executive.
By Chace I interacted with a good Executive who explained me in detail, How to claim Refund from Merchant Directly instead of raising chargeback.

I hope I am still eligible for the compensation of 100 rupees per day.

But now in this case Both Bank and Merchant would play blame game since matter is already messed up.

So be ready to raise the matter with RBI BO, if Bank deny for Rs.100/day compensation

 

[VijayflyRaven]

Bigbasket has given in writing that they have issued manual refund as they did not provide the service to me. Also Indus created a problem with chargeback and closed it twice saying they cannot help. Bigbasket closed it saying chargeback was initiated. Now there is no chargeback process and no manual refund from merchant. This is definitely messed up by both parties and I plan to raise it with RBI after 30 days from first complaint.
Lesson learnt is to go to bank for chargeback only after 3 weeks just before the deadline.

If you further esclate with Bigbasket by sharing ARN and ask them to give in Written "Bigbasket did not received Amount of Rs.XXX dated..... against ARN..............
Then Bigbasket would definitely refunded it directly

I followed instructions as given by Axis Customer Care Executive.
By Chace I interacted with a good Executive who explained me in detail, How to claim Refund from Merchant Directly instead of raising chargeback.

But now in this case Both Bank and Merchant would play blame game since matter is already messed up.

So be ready to raise the matter with RBI BO, if Bank deny for Rs.100/day compensation

 

[VISHESH_BANSAL]

Bigbasket has given in writing that they have issued manual refund as they did not provide the service to me. Also Indus created a problem with chargeback and closed it twice saying they cannot help. Bigbasket closed it saying chargeback was initiated. Now there is no chargeback process and no manual refund from merchant. This is definitely messed up by both parties and I plan to raise it with RBI after 30 days from first complaint.
Lesson learnt is to go to bank for chargeback only after 3 weeks just before the deadline.

Why are you waiting for 30 days ?

For my Latest Complaint with RBI against Axis on a different topic, I raised the complaint with RBI immediately after receiving unsatisfactory response from Level 1 of Axis

Do not wait and raise the Complaint with RBI BO.

 

[VijayflyRaven]

Why are you waiting for 30 days ?

For my Latest Complaint with RBI against Axis on a different topic, I raised the complaint with RBI immediately after receiving unsatisfactory response from Level 1 of Axis

Do not wait and raise the Complaint with RBI BO.

That is good info. Let me get it in writing that they closed the case. I got automated email that they closed the chargeback but no reason was given.

I will use that to raise the issue to RBI BO.

Thanks again for your help

 

[vijay.vj]

@VISHESH_BANSAL

Requesting your advice regarding my case.
On 4th Oct, I tried to open Indie account and paid 50k IP via gpay IDFC UPI. However, transaction successful from gpay but account creation failed. So amount got stuck.
I raised a dispute from IDFC. However on 5th Oct, I received email from razorpay that my refund has been initiated and same would be processed in 7 working days. No luck even after 2 weeks. IDFC says invalid ARN/RRN number, IndusInd says source account refunded, check with IDFC. IDFC raised chargebacks but claims that IndusInd rejected it saying txn is credited. However, IndusInd care wanted me to raise chargeback and never acknowledged earlier raised chargebacks. It was a back and forth mess.

This went for a month before I got my money back. Do I have a case here for compensation? If yes, is it from IndusInd or IDFC

Thank you !

 

[VISHESH_BANSAL]

@VISHESH_BANSAL

Requesting your advice regarding my case.
On 4th Oct, I tried to open Indie account and paid 50k IP via gpay IDFC UPI. However, transaction successful from gpay but account creation failed. So amount got stuck.
I raised a dispute from IDFC. However on 5th Oct, I received email from razorpay that my refund has been initiated and same would be processed in 7 working days. No luck even after 2 weeks. IDFC says invalid ARN/RRN number, IndusInd says source account refunded, check with IDFC. IDFC raised chargebacks but claims that IndusInd rejected it saying txn is credited. However, IndusInd care wanted me to raise chargeback and never acknowledged earlier raised chargebacks. It was a back and forth mess.

This went for a month before I got my money back. Do I have a case here for compensation? If yes, is it from IndusInd or IDFC

Thank you !

Technically Not eligible for Comepensation. UPI refunds are Instant usually. Delay must be from IDFC side.

What is mentioned in the narration of Refund Entry ?

Can you share Snapshot of Narration of Refund entry and Razorpay Refund E-Mail ?

 

[vijay.vj]

Technically Not eligible for Comepensation. UPI refunds are Instant usually. Delay must be from IDFC side.

What is mentioned in the narration of Refund Entry ?

Can you share Snapshot of Narration of Refund entry and Razorpay Refund E

Refund Narration.


5th Oct Refund email: This never got credited

6th Nov Refund email: Instant Credit