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CCPA seeks RBI intervention on banks delaying refund in case of failed transactions

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New Delhi: Amid rising shopper complaints relating to delay in reverse or refund of cash deducted on account of failed or cancelled banking transactions, newly arrange shopper safety regulator CCPA has flagged this problem to the RBI searching for its intervention to make sure banks reverse such cash on time.

In a letter to Reserve Bank of India (RBI) Deputy Governor M Okay Jain, the Central Consumer Protection Authority (CCPA) Chief Commissioner Nidhi Khare acknowledged that 2,850 complaints pertaining to “transactions failed/cancelled but money not refunded” forming 20 per cent of grievances registered within the banking sector have been acquired by the government-run National Consumer Helpline (NCH).

She stated though banks are crediting the quantity into the buyer or beneficiary’s account, it’s not being finished within the prescribed timeline as directed by the RBI tips.

In view of this, there’s a want for banks to stick to the timelines for settlement of claims as per the rules issued by the RBI, she added.

In this backdrop, Khare stated: “RBI, being the banking regulator, is requested to look into the matter and take up the issue with the banks urging them to adhere to the timelines stipulated in guidelines issued by RBI in this regard.”

The CCPA can lengthen cooperation to the RBI in guaranteeing speedy redressal to the customers, she stated within the letter.

Further, Khare knowledgeable that the evaluation of the buyer grievances acquired by NCH confirmed that various grievances have been acquired pertaining to failed or cancelled banking transactions and cash not refunded.

There had been additionally grievances associated to inter-banking providers like IMPS and UPI, whereby transactions have failed however cash not reversed/transferred though cash deducted from the financial institution or pockets account of the customers, she added.

The letter additionally stated the CCPA was established on July 24, 2020 to manage issues associated to violation of rights of customers, unfair commerce practices, and false or deceptive commercials that are prejudicial to the curiosity of public and customers and to guard, promote and implement the rights of customers as a category.

The CCPA is empowered to conduct investigations into violation of shopper rights, order recall of unsafe items and providers as nicely take sue-motto complaints the place a category of customers is impacted attributable to a faulty product or poor providers and in addition impose penalties.

While conducting an investigation after preliminary inquiry, CCPA could have the identical powers given below the provisions of the Code of Criminal Procedure, 1973 for finishing up search and seizure, the letter added.

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