Bank ATM goof-ups and how to handle them

ATMs, though they actually stand for Automated Teller Machines, have pretty much become your source of Any Time Money, having almost replaced bank branches. You can do a zillion things at a modern day ATM, read this _Firstpost_ story if you didn’t already know. In fact, you no longer have to stick to your own bank’s ATM; you get to make a limited number of transactions free of cost at another bank’s ATM. But, this coin has another side too, and things can sometimes go wrong with ATM banking.

Picture this:

You go to an ATM of another bank to withdraw some money. You insert your debit card in the ATM slot, punch in your four digit PIN, the ATM makes a fluttering sound and you expect the machine to spit out cash. But instead, you get a receipt stating that the transaction was successful and your account was debited. You approach your bank and inform them about the incident but you don’t get a satisfactory reply. Instead, both your bank as well as the bank whose ATM you used say that as per their records, the transaction was successful. Helpless, you are not sure what to do, since both banks agree that the transaction went through and the money was dispensed.

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This happened for real:

If you thought this is an imaginary situation, it is not. This happened for real and is cited in an RBI document. The acquiring bank (other bank) approached the banking ombudsman (BO), and informed them that the disputed amount was remitted to the issuing bank (own bank) through NEFT. The BO advised the issuing bank to credit the amount into the customer’s account, along with a penalty of Rs 100 per day for delay, as per the apex bank’s rules. On further investigation, the BO found that the amount was remitted by the acquiring bank only six months after the date of transaction. The issuing bank credited the amount to the customer account, but did not pay the penalty. The RBI document said, “The bank was advised to pay the penalty to the complainant, and claim it from the acquirer bank if the delay was attributed to the acquirer bank.”

What we can learn:

If you face a situation like this, where your ATM fails to dispense cash, but your account is debited nonetheless, here is what you should do.

First call up the bank’s call centre or visit the nearest bank branch and inform them about the incidence of the failed ATM transaction. Keep in mind, that as per the Reserve Bank of India, banks have to credit this wrongly debited amount into your account within seven working days from the date of your complaint. Banks pay you a fee: If your bank fails to comply with this rule, they have to pay you a fee of Rs 100 per day after the seventh working day. Keep in mind that you are entitled to such a compensation for delay from your bank (the bank that has issued your debit card used to withdraw the cash) only if you lodge such a claim within 30 days of the date of transaction.

If you are lucky, you won’t ever face such a situation. But, there have been many such cases in the past with failed ATM transactions and the bank’s delay in paying the wrongly debited amount, the above mentioned case, for instance.

Irrespective of which bank’s ATM you use, ensure that you get in touch with your bank (the bank which has issued your debit card) and file the complaint. And if you don’t get a timely resolution for your bank’s side, don’t hesitate to approach the banking ombudsman.