Nowadays, almost everyone uses ATMs. Introduction of ATMs have eliminated the need to stand in long queues to withdraw cash at banks. There are many cases where ATM transactions fail and the amount gets deducted from the user's bank account. It is a big headache for users as they will not get cash and they need to contact the respective bank to get their money back.
The Reserve Bank of India (RBI) has issued guidelines to banks in case of failed transactions. In case your ATM transaction fails and the amount gets deducted from your bank account, you are not only entitled to get the money back into your account, you are also entitled to get compensation for the failed transaction. This Rs 100 per day is paid by the bank as a penalty for delay in reimbursement for failed ATM transactions.
1. In case the customer files a genuine complaint with a bank regarding the failed ATM transaction, it should be resolved within 7 days from the date of receiving the complaint. The amount must be credited back to the customer’s account within 7 days.
2. In case the bank fails to credit the customer's account within 7 days of receiving the complaint, the customer is entitled to get compensation of Rs 100 per day.
3. The bank is entitled to pay the compensation, only if the complaint is lodged by the customer within 30 days from the date of the transaction. The complaint regarding the failed ATM transaction should be filed in the bank which has issued that ATM card.
4. If the bank does not respond in a proper way to the cardholder’s complaint within 30 days from the date of receiving the complaint, the complainant can approach the Banking Ombudsman for redressal of the complaint.
5. In case of failed or disputed ATM transactions, the complaint redressal mechanism available to users of WLA (White label ATMs) is the same as the mechanism available to users of bank ATMs.
These RBI guidelines which are effective from July 1st, 2011, replace the previous instructions from 2009, which allowed banks a leeway of 12 working days to credit the amount to customer’s bank accounts after a failed transaction.
Under the new guidelines, to receive compensation, it is compulsory to file a complaint with the bank within 30 days of the date of the transaction.
This 30-day period is relevant only if you are planning to claim the compensation of Rs 100 per day of delay. Otherwise, you will be free to file a complaint against a failed ATM transaction, even after 30 days.
Do not panic if the ATM doesn't dispense cash and the amount gets debited from your bank account. All you have to do is call the customer care of the bank and inform them regarding the issue. If the issue is still not resolved, you can raise a complaint by visiting the bank branch.