Will banks pay penalty in such cases and what is the turnaround time for RTGS and NEFT transactions?
Oil
You can expect a window of two hours from batch settlement to NEFT before it is credited to the beneficiary’s account. If it is not possible to credit the beneficiary’s account for any reason, the destination banks are required to return the transaction (to the origin branch) within two hours of the batch in which the transaction was processed. reserve Bank of India Oil FAQ.
NEFT penalty
As per RBI’s FAQs on NEFT, “If the NEFT transaction is not credited or refunded within two hours after batch settlement, the bank will pay the affected customer the current RBI LAF repo rate plus two per cent.” is liable to pay penal interest for the period of delay / up to the date of credit or refund, as the case may be, in the customer’s account without waiting for a specific claim to be filed by the customer in this regard.
RBI LAF Repo Rate 4.90% + 2% = 6.90% Penalty
What happens if RTGS money is not credited to the beneficiary’s account?
Under normal circumstances, the beneficiary branches are expected to receive the money in real time as soon as the remittance is transferred by the bank. As per RBI FAQ, the beneficiary bank has to credit the beneficiary’s account within 30 minutes of receiving the funds transfer message.
The amount will be refunded to the remitter’s account by the originating bank. RBI states: “If for any reason it is not possible to credit the beneficiary customer’s account, the funds received by the RTGS member bank shall be returned to the originating bank within one hour of the receipt of payment at the payment interface (PI). or before the end of RTGS working day, whichever is earlier.Once the money is received back by the remitting bank, the original debit entry in the customer’s account needs to be reversed.
Compensation for delay in refund of payment
According to RBI, the original customer is entitled to compensation at the current repo rate plus 2% in case of any delay in returning the failed payment.
Repo Rate: 4.90%
Penalty: 2%
4.90% + 2% = 6.90% penalty
raise a complaint
If there is any problem with delay or non-credit in the beneficiary’s account with RTGS, the customer should approach his/her bank or branch. If the problem is not resolved satisfactorily, the complaint may be sent through email or postal mail to the following address with the specifications of the problem and the UTR number.
In case of NEFT, you can approach the grievances department of your bank and provide them with the specifics of the disputed transaction. If your problem is not resolved within 30 days, you can file a complaint under “Reserve Bank-Integrated Ombudsman Scheme (RB-IOS, 2021)”. RB-iOS, 2021 provides a single point of contact for customers to make complaints about specified RBI regulated entities.