The Reserve Bank of India (RBI) extended the deadline for compliance with several rules and regulations concerning payment services. The central bank has extended the date for compliance with its common framework on reversing failed digital payment transactions from December last year to September 30, 2021. "Keeping in view the resurgence of the COVID-19 pandemic and the representations received from various bank and non-bank entities, it has been decided to extend the timeline prescribed for compliance in respect of a few areas," the RBI said in a notification. In September 2019, the RBI issued guidelines on the harmonisation of TAT and customer compensation for failed transactions using authorised Payment Systems, through which it created a common framework for all payments companies to follow when it comes to reversing failed digital payment transactions. The RBI also said that the prescribed TAT is the "outer limit for resolution of failed transactions" and that banks and other payments operators/entities should aim to implement a system for quicker resolution of such failed transactions. While these rules came into force on October 15, 2019, the original date for compliance was March 24, 2020. But in June last year the RBI extended the deadline to December 31, 2020. Payment companies now have until September this year to implement this framework within their systems to automate-reverse payments to customers, in case of transaction failures or wrongful debits, within the timeline prescribed. Timeline for auto-reversal In case funds are debited from a customers' account but the transaction gets…
