ATM Transaction Failed? Amount Deducted? Know What RBI Says

ATM or Automated Teller Machine is used to withdraw cash and do other financial and non-financial operations without having to go to the bank branch. Using an ATM lets you bank electronically, get cash, pay bills, make deposits, and move money between accounts. A debit or ATM card, together with a personal identification number, are required to use these machines.

However, have you ever wondered what would happen if an ATM transaction went wrong or failed and your account was debited?

According to the Reserve Bank of India (RBI), in such case, the banks are required to reverse the transactions on their own. However, it is always advisable to file a complaint as soon as possible with the bank that owns the ATM or the card issuing bank.

It should be noted that banks are required to credit customers' accounts no later than five calendar days after a failed transaction. If the bank doesn't, the customer is entitled to compensation for delays that go beyond the number of days following a failed transaction.

According to the RBI, "The card issuing bank has to pay compensation of Rs. 100/- per day for delay in re-crediting the customer's amount beyond 5 calendar days from the date of the failed ATM transaction. The compensation has to be credited to the account of the customer without any claim being made by the customer."

If the reversal and compensation are not made by the bank the customers have the right to bring the issue to his/her bank.

According to the RBI, "The customer can approach his / her bank and take up the matter with them. If the customer is not satisfied with the reply of the bank or in case of non-receipt of a reply from the bank within 30 days, the customer can take recourse to the Reserve Bank - Integrated Ombudsman Scheme."

Also, customers can make an online complaint at https://cms.rbi.org.in/cms/indexpage.html#eng (Complaint Management System)