ATM transaction failed? Amount deducted? Know what RBI says- Re-credit, compensation, here is all you need to know

Automated Teller Machine or ATM is a computerised machine which is used by bank account holders mainly to withdraw cash and to carry out other financial and non-financial transactions without the need to visit the bank branch.

However, have you wondered what will happen in case of a failed ATM transaction when your account is debited?

As per the information provided by the Reserve Bank of India (RBI) if such incidents happen then the banks are supposed to reverse such transactions on their own. However, it is always a good practice to lodge a complaint with the card issuing bank or ATM owner bank at the earliest.

Banks/WLA opperators display the name(s) and the contact number(s) of concerned officer(s) / toll free number(s) / help desk number(s) in the ATM premises itself. Therefore in order to lodge a complain you will have to look for the number in the ATM premises.

Also, it can be noted that the banks have been mandated to re-credit



the customer's account within 5 calendar days from the date of the failed transaction. If the bank fails to do, then the customer becomes eligible for compensation for delays beyond days of a failed transaction.

The card issuing bank will have to pay a compensation of Rs 100 per day for delay in re-crediting the customer's amount. The compensation has to be credited to the account of the customer without any claim being made by the customer.

However, if the reversal and compensation is not made by the bank then the customer can approach his / her bank and take up the matter with them.

Within 30 days of receiving reply from the bank or in case of non-receipt of a reply from the bank within 30 days, the customer can take recourse to the Banking Ombudsman.

The Reserve Bank of India has provided the details of Office of Banking Ombudsman at- https://rbi.org.in/Scripts/AboutUsDisplay.aspx?pg=BankingOmbudsmen.html.