What to do if you have a failed ATM transaction but the amount is debited?
A failed ATM Transaction occurs due to various reasons such as wrong PIN, technical error, ATM runs out of cash etc. but here we will discuss only the failed transactions in which amount gets deducted but the customer does not get cash.
Below are a few events which bother the customer most:
(i) Intended Amount gets deducted but no cash is dispensed by ATM.
(ii) Intended Amount gets deducted but the entire amount is not dispensed by ATM. For example, the account is debited with Rs.5,000 but only Rs.500 is dispensed by the ATM.
(iii) Intended Amount is dispensed by ATM but the customer leaves the ATM before collecting cash and the cash is retracted by the ATM.
(iv) Customer’s account gets debited twice for the same transaction. The customer makes a withdrawal (say Rs. 5,000) and his/her account gets debited with double the amount (say Rs. 10,000).
In some of the cases amount automatically gets credited back to the customer’s account within a reasonable time (same day) but you should always keep the transaction slip with you till the amount gets credited because this is the only evidence containing all the important information about your ATM transaction such as:
- Name of the ATM Bank –This refers to the ATM of Bank where you have made the transaction.
- Location –ATM Branch location
- Date of the transaction –Date when you made the transaction
- Time of transaction –Exact time of the transaction (hh:mm:ss)
- Transaction reference number –This is generally an 8-9 digit number which appears on the transaction slip
- Response Code
- Card No/Account Number- only the last 3-4 digits are printed on the slip others are covered with xxxx.
- Nature of Transaction – It means the type of transaction such as pin change, withdrawing cash, updating account details etc.
Steps to follow
The first step to follow is contacting customer care and registering a complaint. Customer care executive will provide you the complaint tracking number which becomes the base of all the next correspondences with customer care.
In case the issue is not resolved through customer care complaint, visit the bank branch and raise an issue over there. You will be again given a complaint tracking number which will be used to follow up with the bank. You can further escalate the issue to the manager if the issue remains unsolved for reasonable time. Contacting a senior person is a quicker way of resolving any complaints.
You can also visit bank’s web portal and register a grievance with the bank’s online grievance cell which typically deals the issue with top priority.
In case your account does not get credited within a reasonable time, the RBI directive of May 27, 2011, titled “reconciliation of transaction at ATMs failure time limit” comes to your aid. This directive says that the concerned bank has to credit the wrongly debited amount within seven days of receiving the complaint. Any failure to do so shall attract a penalty of Rs.100 per day beyond seven days and this compensation shall be credited automatically to the customer’s account with the credit of the failed transaction.
This directive also makes it clear that non-adherence of the provisions of this circular shall attract penalty as prescribed under the payment and settlement system act 2007.
So please write to the nodal officer of the concerned bank immediately demanding bank to comply with the RBI direction and credit the amount along with the compensation, if any, to your account. You can also send a copy of the complaint to the banking regulator.
If you still do not get the money, file a complaint with the banking ombudsman. Addresses of offices of Banking Ombudsman and their areas of operation are given in this page: Banking Ombudsman Addresses and Areas of Operation. An online complaint facility is available here: BO Online Complaint. Official information on the Banking Ombudsman Scheme and other resources are available HERE. File your complaint as soon as possible after getting a response from your bank. However, if your bank does not respond, you need to wait at least for 30 days before approaching the BO. Give all the particulars of your transaction in your complaint to BO, such as:
- Your bank, account number, and branch (where you have your account)
- Name of the bank whose ATM was used and ATM location
- Date and time of the transaction
- Amount of attempted withdrawal
- The amount actually dispensed (if dispensed less amount) or no cash dispensed
- Copy of the transaction slip
- Details of your complaint/complaints to your own bank and acquiring bank and their response, etc.
- Your Name, Address, Phone Number, and Email ID clearly in your complaint so that BO staff can contact you in case of need.
Words of Wisdom
Do not file a complaint before Banking Ombudsman through a lawyer. Such complaints are not eligible and are straight away rejected, and do not file a complaint before a Consumer Forum before going to Banking Ombudsman. If your complaint is pending before a Consumer Forum or any Court of Law, Banking Ombudsman will reject your complaint.