Clients often hear that banks charge fees for SMS, internet banking, checkbooks, and ATM services. However, there is a possibility that the bank may pay compensation to the client. The answer is positive: in several situations, banks are obliged to reimburse clients for damages.
If a client applies to close a credit card, and the process takes longer than the established period, the bank must compensate for the delay daily. Fines may apply not only when closing a card but also in cases of delays in improving credit history, failed digital payments, and other situations.
If a client's request is processed late, the bank must pay a fine ranging from 100 to 5000 rupees per day (including taxes). This rule is set by the Central Bank RBI. Below are five conditions under which the bank is obligated to pay compensation.
According to RBI rules, clients have the right to compensation in case of transaction failures, such as operations via an ATM, card, or digital payments. If payment via UPI or cash withdrawal at an ATM fails, but the money has been debited, and the bank does not resolve the issue within the stipulated time, the client will be paid a fine of 100 rupees for each day.
Under RBI rules, banks and card issuers must process credit card closure requests within 7 days. In case of delay, they are obliged to pay the cardholder 500 rupees daily until the account is closed.
If a person takes out a loan and repays it in full, the bank or lender has 30 days to return the original property documents. If the bank delays returning these documents, it is obliged to pay compensation of 5000 rupees for each day of delay.
According to the RBI, any dispute concerning a person's credit history must be resolved within 30 days. If the bank fails to meet this requirement, users have the right to receive daily compensation of 100 rupees if the complaint is not resolved.
In accordance with RBI rules, in case of damage to a bank locker due to negligence, fire, theft, or fraud, the bank's liability is limited to 100 times the annual rental fee. If the annual rental fee for the locker is 3000 rupees, the maximum compensation obtainable under the RBI infrastructure will be 300,000 rupees.