What to do if you have a failed ATM transaction but 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 about the failed transactions in which amount gets deducted but customer does not get cash.
Below are 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 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 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 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 the corresponding bank in which the transaction was made.
- Location –The ATM branch
- Date of transaction –The date at which the transaction was made
- Time of transaction –The time at which the transaction was made
- Transaction reference number –This is generally a 8-9 digit number which appears on the transaction slip
- Response Code
- Card No/Account Number- only the last 3-4 digits will be visible
- Nature of Transaction – Nature of transaction refers to the activity which was carried out while using the card, such as withdrawing cash, updating account details etc.
In case your account does not get credited within 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 have to credit the wrongly debited amount within seven days of receiving complaint. Any failure to do so shall attract 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 make 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 transaction
- Amount of attempted withdrawal
- 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.
Do not file complaint before Banking Ombudsman through a lawyer. Such complaints are not eligible and are straight away rejected, and do not file 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.