New Delhi: If a bank fails to complete a ‘stipulated’ task within the given timeframe, the lender must pay fixed daily compensation to the customer. According to the rules set by the Reserve Bank of India (RBI), there are established time limits for various banking services. 

Under the RBI regulations, customers are entitled to receive compensation ranging from Rs 100 to Rs 5,000 per day for delays by the bank. In this article, we inform you about the instances in which customers can claim compensation if the bank fails to address the grievance within the stipulated time. 

Compensation for failed UPI or ATM transactions

If a person makes a UPI payment, money is debited from the account, but the recipient does not receive the funds. In such cases, the lender must refund the money within the timeframe prescribed by the RBI. However, if the bank fails to refund, it may be liable to pay compensation of Rs 100 per day to the customer in accordance with applicable rules.

If cash does not come out during an ATM withdrawal, but the amount gets debited from the account. In this scenario, the lender must refund the money within the timeframe prescribed by the RBI. If the bank fails to refund the amount within the stipulated period, the customer is entitled to receive compensation of Rs 100 per day in accordance with applicable rules.

Credit Card Closure

According to the RBI rules, credit card holders are also protected by a specific RBI turnaround time. The lenders and card issuers are required to close a credit card account within seven working days of receiving a closure request, subject to the applicable conditions. If the bank fails to close the card account within the prescribed period, it is liable to pay Rs 500 per calendar day of delay.

Loan

If a borrower has fully repaid a home loan or any other loan, the bank is required to complete the process of returning your original property documents and removing related charges within 30 days. However, if the bank delays the process, it may be liable to pay compensation of Rs 5,000 per day.

CIBIL reports

If a person lodges a complaint regarding CIBIL or other credit reports showing incorrect details regarding loans, outstanding dues, or closed accounts, the individual can lodge a complaint with the bank and the relevant credit bureau. If the bank fails to resolve the issue within the stipulated time, it has to give compensation of Rs 100 per day.

Bank locker

If items kept in a bank locker get damaged due to the bank's fault, the lender would be held liable under certain circumstances. According to RBI guidelines, the bank is mandated to compensate the customer 100 times the annual locker rent. For instance, if the annual locker rent is Rs 2,000, the liability limit would be Rs 2 lakh. 

It may be noted that the actual compensation on the above-mentioned aspects will be determined based on the specific circumstances and applicable regulations.