What changed
RBI observed rising complaints about non-credit, delayed credit, and delayed return of transactions in electronic payment systems. It also noted that banks are not paying penal interest for delays as required. The circular reiterates strict adherence to existing guidelines and warns of penal consequences for violations.
What it means for you
Banks must ensure timely credit to beneficiary accounts on the value date or return funds promptly as per return discipline. Failure to pay penal interest for delays will invite action under the Payment and Settlement Systems Act. This is a clear signal to tighten operational processes to maintain system credibility.
What you must do
- Review and reinforce compliance with procedural guidelines for RTGS, NEFT, NECS, and ECS.
- Ensure credits are afforded within prescribed timeframes and returns are processed without delay.
- Set up mechanisms to automatically calculate and pay penal interest for any delayed credits.
- Train staff handling electronic payments on the strict timelines and penalty provisions.
- Conduct internal audits to identify and rectify any recurring delays or non-compliance.
Who it affects
All member banks participating in RTGS, NEFT, NECS, and ECS, Operations teams handling electronic payment settlements, Compliance and risk management departments, Customer service teams managing beneficiary complaints
What happens if my bank delays crediting my RTGS/NEFT payment?
The bank must pay penal interest to you for the delay as per RBI's procedural guidelines. If they don't, they face penalties under the Payment and Settlement Systems Act.
Does this circular apply to all electronic payment systems?
Yes, it covers RTGS, NEFT, NECS, and all ECS variants. All member banks must follow the same strict timelines and return discipline.
What are the consequences for banks that violate these guidelines?
RBI has warned that any violation will attract penal consequences under the Payment and Settlement Systems Act, 2007, which could include fines or other regulatory actions.