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

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

Amid rising shopper complaints concerning 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 situation to the RBI looking 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 said that 2,850 complaints pertaining to “transactions failed/cancelled but money not refunded” forming 20 per cent of grievances registered in the banking sector have been obtained via the government-run National Consumer Helpline (NCH).

She mentioned though banks are crediting the quantity into shopper or beneficiary’s account, it isn’t being executed in the prescribed timeline as directed by the RBI pointers.

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 mentioned: “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 mentioned in the letter.

Further, Khare knowledgeable that the evaluation of the patron grievances obtained via NCH confirmed {that a} quantity of grievances have been obtained 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 mentioned 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 effectively take sue-motto complaints the place a category of customers is impacted resulting from a faulty product or poor providers and likewise 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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