If an ATM didn't give cash but your account was debited, RBI rules say the bank must reverse it within five days after the transaction (T+5). If not, the bank owes you ₹100 for every day of delay. UPI and IMPS failures have a shorter T+1 deadline. Complain to your bank first, then the RBI Ombudsman.
Updated 4 November 2026
It's a horrible feeling. You stand at the ATM, the machine whirrs, no cash comes out, and two seconds later the SMS says ₹5,000 debited. Or a UPI payment shows "failed" at the shop counter but the money's gone from your account. Most of the time it comes back on its own. But when it doesn't, you have real rights here, backed by a Reserve Bank of India (RBI) circular. And since some banks started charging for failed transactions from 1 November 2026, it's worth knowing the full picture.
Quick facts
| Item | Details |
|---|---|
| Official portal | RBI circular on failed transactions (TAT harmonisation) and the RBI Complaint Management System |
| Helpline | Your bank's customer care first; RBI Ombudsman contact centre on 14448 |
| Fee | Free. Complaints to your bank and to the RBI Ombudsman cost nothing |
| Deadline | ATM cash not given: reversal by T+5 days. UPI and IMPS: T+1 day. Card at shop (POS) or online: T+5 days |
| Documents | Transaction SMS or screenshot, date and time, ATM ID or merchant name, amount, your account or card number (last digits) |
| Compensation | ₹100 per day of delay beyond the deadline, paid to you |
| RBI circular | DPSS.CO.PD No.629/02.01.014/2019-20, dated 20 September 2019 |
What the RBI rule actually says
On 20 September 2019 the RBI issued a circular called "Harmonisation of Turn Around Time (TAT) and customer compensation for failed transactions using authorised Payment Systems". It sets one simple principle: if a transaction failed for reasons that aren't your fault, like a network issue, a machine fault or a timeout, the money must come back within a fixed time. If it doesn't, the bank or payment company pays you a fixed compensation for each day of delay.
"T" means the day of the transaction. So T+5 means five days after the day you tried. The circular counts calendar days, and the compensation is supposed to be paid automatically to your account, without you having to file a claim.
The deadlines by type of transaction
| What went wrong | Deadline for reversal | Compensation after that |
|---|---|---|
| ATM: account debited, no cash given | T+5 days | ₹100 per day |
| Card to card transfer: your account debited, other side not credited | T+1 day | ₹100 per day |
| Card at shop (POS) or online purchase: debited, merchant didn't get confirmation | T+5 days | ₹100 per day |
| IMPS: debited, receiver not credited | T+1 day | ₹100 per day |
| UPI: debited, receiver not credited | T+1 day | ₹100 per day |
| AePS (Aadhaar-enabled payment at a micro-ATM): debited, no cash | T+5 days | ₹100 per day |
The full table, including other payment types, is in the RBI circular. Check it if your case is unusual.
What to do right away, step by step
1. Don't panic and don't try again and again. Each retry can create another stuck transaction.
2. Take a screenshot of the SMS, app message or receipt. If it's an ATM, note the ATM ID (printed on the machine) and the exact time.
3. Wait for auto-reversal. Most failed transactions reverse within a few hours or a day or two.
4. Raise a complaint with your bank if it hasn't come back. Use the bank app, website, branch or customer care. Ask for a complaint reference number.
5. Mention the RBI TAT circular and the deadline that applies. Ask for the ₹100 per day compensation if the deadline has passed.
6. Go to the RBI Ombudsman if your bank doesn't reply within 30 days or rejects your complaint. File it on cms.rbi.org.in.
We've written a detailed guide on complaining to the RBI Ombudsman.
Do I get the ₹100 a day automatically?
That's what the rule says. In real life, it doesn't always happen. If the reversal came late and you didn't see any compensation credited, write to your bank with the dates and ask for it. Mention the circular number. If the bank refuses, the RBI Ombudsman can direct it to pay.
Failed vs fraud: know the difference
This rule is for failed transactions, where nobody else got your money. If someone tricked you, or a transaction happened that you never made, that's fraud. The steps are different and faster: call 1930, report on cybercrime.gov.in, and inform your bank immediately. Read our guide on what to do in the first hour after UPI fraud.
New charges on failed transactions from 1 November 2026
Here's the twist. The RBI rule protects you when the failure isn't your fault. But some banks charge you when a transaction fails because of something on your side, mainly not having enough balance.
News reports from late October 2026 (Mint, Economic Times, Business Standard) said:
• IndusInd Bank started charging ₹25 for a failed POS or ATM transaction due to insufficient funds on certain savings accounts, and ₹50 for a cheque returned for non-financial reasons, from 1 November 2026.
• Punjab National Bank revised some debit card and ATM-related charges from 1 November 2026, including how many free ATM or cash-recycler transactions you get before a fee applies.
Exact amounts depend on your account type, so check your bank's official schedule of charges before relying on any number. IndusInd's is on its schedule of charges page. PNB's is on pnbindia.in. Our roundup of rules changing from 1 November 2026 covers the other changes.
How to avoid paying these charges
• Check your balance before a big card or ATM payment. Most bank apps show it in one tap.
• Keep a small buffer in your account if you have auto-debits like SIPs, EMIs or insurance.
• Track how many free ATM withdrawals you've used in the month. Banks usually allow a few free ones at their own ATMs and fewer at other banks' ATMs.
• Set up SMS or app alerts so you know at once when money moves.
Where to complain if your bank won't listen
| Step | Where | When |
|---|---|---|
| 1 | Your bank's customer care, app or branch | Right after the auto-reversal deadline passes |
| 2 | Bank's grievance redressal officer (named on its website) | If no reply in about 2 weeks |
| 3 | RBI Ombudsman on cms.rbi.org.in | If no reply in 30 days or you're not satisfied |
The Ombudsman route is free, fully online and doesn't need a lawyer.
Frequently asked questions
How long does a failed ATM refund take?
Under the RBI's 20 September 2019 circular, the bank must reverse a failed ATM debit within five days after the transaction (T+5). After that, it owes you ₹100 for each extra day of delay.
Do I get ₹100 a day automatically?
The rule says the compensation should be credited without you asking. If you don't see it, write to your bank with the transaction details, mention the RBI circular, and ask for it. The RBI Ombudsman can step in if the bank refuses.
My UPI payment failed but money got debited. What now?
For UPI, the deadline is shorter: the money should come back by the next day (T+1). If it doesn't, raise a complaint in your UPI app and with your bank. Compensation of ₹100 per day applies after the deadline.
Can a bank charge me for a failed transaction?
If the failure was the bank's or network's fault, no, and you're owed a refund. If it failed because you didn't have enough balance, some banks charge a fee as per their schedule of charges. Check your bank's official charges page.
Where do I complain to the RBI?
File a complaint on cms.rbi.org.in or call 14448, after you've first complained to your bank and waited 30 days or got an unsatisfactory reply.
Sources
• RBI: Harmonisation of TAT and customer compensation for failed transactions
• RBI Complaint Management System
• National Cyber Crime Reporting Portal
• IndusInd Bank: schedule of charges
• Punjab National Bank: official website
Want to raise a banking problem in your area with your MP? Find them on NetaSampark.