How many times have you heard of someone putting his or her ATM card into the machine only to get a slip which says that the transaction has failed and yet, the amount gets debited from the account and no money comes out?
This is a common scenario across different banks in the City.
Few people are aware of the fact that the Reserve Bank of India (RBI) has directed banks to reimburse customers for wrongly debiting amounts from their accounts in what they call 'failed ATM transactions'.
After a customer files a complaint, the bank has seven days to rectify the problem. Beyond this, it is liable to pay Rs 100 per day till the money is credited back to the account.
The only catch is that the customers are entitled to this only if they lodge the complaint within 30 days of the transaction.
"We have a strict policy for resolving such issues within one week of the customer filing the complaint," says Venkatachalam L S, Byrasandra Branch Manager, State Bank of India.
He confirms that the bank is aware of the RBI's order and that the compensation is given in case the bank fails to put the money back in time.
If the compensation is not credited as mandated, the customer can lodge a complaint with the bank or approach the local banking ombudsman.
"In our branch, we do get these complaints on and off. If we get a complaint, we clear it in a short period. There is an official account called 'Suspense A/C' in each branch of the bank from which the amount is debited.
It is credited back to the account-holder after verification of his or her complaint," explains
Venkatachalam.
Even the most reputed banks of the country have faced this issue.
"A few years ago, I tried withdrawing money from the HDFC ATM at Bangalore (Coles Park Branch) with my Vijaya Bank debit card. There was an error displayed on the screen saying 'Processing Temporarily Suspended'.
I tried withdrawing around Rs 7,000 twice and got the same error both times. On checking my balance, Rs 14,000 had been deducted even though I hadn't collected any money," says T K Anantha Kumar.
"It was a few weeks before I got my money back. Back then, I wasn't aware that I could demand compensation from the bank," he adds.
Of course, there are also the lucky ones who have the problem rectified almost
instantly.
"I was using the HDFC ATM in Koramangala recently. Though the ATM indicated that the transaction cannot be processed, I got a text from my bank, ING Vysya, stating that Rs 500 had been withdrawn from my account," says Sreejita B.
"I called up the bank immediately and thankfully, they had received similar complaints throughout the week and so, credited the money in my account within the next couple of hours," she adds.
If one is faced with this problem, which is the best way to go about it?
"Wrong ATM transactions come well within the meaning of 'deficiency of service' under the Consumer Protection Act," says Sammith, a lawyer.
"A person who loses out money in such a transaction, after approaching the bank authorities concerned and giving them a written complaint, can approach the Consumer Forum for refund along with an appeal for compensation for the inconvenience caused to him."
This is a common scenario across different banks in the City.
Few people are aware of the fact that the Reserve Bank of India (RBI) has directed banks to reimburse customers for wrongly debiting amounts from their accounts in what they call 'failed ATM transactions'.
After a customer files a complaint, the bank has seven days to rectify the problem. Beyond this, it is liable to pay Rs 100 per day till the money is credited back to the account.
The only catch is that the customers are entitled to this only if they lodge the complaint within 30 days of the transaction.
"We have a strict policy for resolving such issues within one week of the customer filing the complaint," says Venkatachalam L S, Byrasandra Branch Manager, State Bank of India.
He confirms that the bank is aware of the RBI's order and that the compensation is given in case the bank fails to put the money back in time.
If the compensation is not credited as mandated, the customer can lodge a complaint with the bank or approach the local banking ombudsman.
"In our branch, we do get these complaints on and off. If we get a complaint, we clear it in a short period. There is an official account called 'Suspense A/C' in each branch of the bank from which the amount is debited.
It is credited back to the account-holder after verification of his or her complaint," explains
Venkatachalam.
Even the most reputed banks of the country have faced this issue.
"A few years ago, I tried withdrawing money from the HDFC ATM at Bangalore (Coles Park Branch) with my Vijaya Bank debit card. There was an error displayed on the screen saying 'Processing Temporarily Suspended'.
I tried withdrawing around Rs 7,000 twice and got the same error both times. On checking my balance, Rs 14,000 had been deducted even though I hadn't collected any money," says T K Anantha Kumar.
"It was a few weeks before I got my money back. Back then, I wasn't aware that I could demand compensation from the bank," he adds.
Of course, there are also the lucky ones who have the problem rectified almost
instantly.
"I was using the HDFC ATM in Koramangala recently. Though the ATM indicated that the transaction cannot be processed, I got a text from my bank, ING Vysya, stating that Rs 500 had been withdrawn from my account," says Sreejita B.
"I called up the bank immediately and thankfully, they had received similar complaints throughout the week and so, credited the money in my account within the next couple of hours," she adds.
If one is faced with this problem, which is the best way to go about it?
"Wrong ATM transactions come well within the meaning of 'deficiency of service' under the Consumer Protection Act," says Sammith, a lawyer.
"A person who loses out money in such a transaction, after approaching the bank authorities concerned and giving them a written complaint, can approach the Consumer Forum for refund along with an appeal for compensation for the inconvenience caused to him."