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02 Dec 2017

Failed ATM-transaction? You can claim Rs. 100/day compensation from bank

How to claim compensation for failed ATM transactions?

Many of us have been victims of failed ATM transactions: the ATM doesn't dispense cash, but the amount gets deducted from the bank account.

Failed transactions are not new, and the deducted amount is eventually returned to the customer's account.

But did you know that such users can claim a compensation of Rs. 100/day from the bank, under RBI's guidelines?

Here's how!

In context

How to claim compensation for failed ATM transactions?
How can you claim compensation?


How can you claim compensation?

Account holders should complain to the card-issuing bank regarding failed ATM transactions at the earliest. It's also applicable to transactions at other banks' ATMs.

Banks should resolve the complaints within seven working days after receiving the complaint at the card-issuing bank branch.

If the wrongfully deducted amount isn't credited within seven working days, cardholders can claim Rs. 100/day compensation from the issuing bank.


Is every customer entitled to compensation?

Account holders are entitled to the Rs. 100/day (till the deducted amount is re-credited) compensation from their respective banks only if they lodge the claim within 30 days of the failed ATM transaction.

If customers fail to do so, they cannot claim the compensation for delay.

If the issuing bank doesn't redress the grievance, account holders can take recourse to the Banking Ombudsman (BO).

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Is there a time-limit for filing complaints?

While there's a 30-day deadline for customers to claim the Rs. 100/day compensation, the account holders are free to lodge complaints of failed ATM transactions (where the amount is not re-credited) even after 30 days without claiming extra compensation.

What about failed transactions at White label ATMs?

White label ATMs

What about failed transactions at White label ATMs?

The procedure for lodging complaints and claiming compensation for failed transactions at White label ATMs (WLAs) is similar to that of regular ATMs. WLAs are operated by non-bank entities.

While the issuing bank is primarily responsible for resolving such customer grievances, the WLA's sponsor bank would also provide necessary support to ensure that the WLA Operator presents relevant records/information to the issuing bank.

Issuing bank and acquiring bank

The bank in which the customer opens an account or the bank that issues ATM/Debit card is the individual's Issuing Bank. In India, account holders of one bank can use other banks' ATMs; the non-issuing bank whose ATMs are used by customers is acquiring bank.

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