Now banks have to Pay fine / compensation to their customers for failed ATM transaction

Banks will now have to pay their customers Rs 100 (or more) if they fail to redress a failed ATM transaction within a set deadline by RBI. The central bank’s circular defines failed transaction as "a transaction which has not been fully completed due to any reason not attributable to the customer such as failure in communication links, non-availability of cash in an ATM, time-out of sessions, etc."

The RBI circular has provided turnaround time of T+5 days for pro-active reversal when the customer’s account has been debited but the ATM failed to dispense cash. T is the day of transaction.

In case of failure to reverse the money, banks will have to pay to customers at the rate of Rs 100 per day beyond the T+5 days.

The RBI circular has fixed different timelines for reversal of money to customers’ accounts in case of failed transactions with Card, PoS, CNP, IMPS, UPI, AEPS, ABPS, NACH, PPI.

You don’t have to file complaint with your bank to get this reimbursement. RBI said that the financial compensation should be sent to the customers’ account suo motu, without waiting for a complaint or claim from the customer.

In case bank didnt adhere to this circular, customer should approach to banking ombudsman 

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