ATM error took Rs 10,000 from Surat man. 9 years later, that glitch won him Rs 3.28 lakh

A consumer court in Surat has directed Bank of Baroda (BoB) to pay Rs 3.28 lakh in compensation to a customer after the bank failed for nearly nine years to reverse a failed ATM withdrawal of Rs 10,000, according to a report by The Times of India.

Failed ATM Withdrawal Sparks Long Legal Battle

The case dates back to 18 February 2017, when the customer attempted to withdraw Rs 10,000 from an SBI ATM in Udhna. Although the amount was debited from his account, the cash was not dispensed. According to Reserve Bank of India (RBI) rules, such failed transactions must be reversed within five days.

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However, the customer did not receive the refund within the stipulated period. He submitted a written complaint at the BoB Dumbhal branch on 21 February 2017 and followed up with multiple emails between March and May that year.


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Despite these efforts, the bank neither reversed the amount nor provided any proof that the transaction had been successful.

Efforts to Seek Evidence Yield No Results

In an attempt to gather evidence, the customer filed a Right to Information (RTI) request with SBI on 21 April 2017, seeking CCTV footage of the ATM transaction. When no satisfactory response was received, he approached the Surat Consumer Disputes Redressal Commission (CDRC) on 20 December 2017.

He demanded a refund of the Rs 10,000 along with compensation and interest. Both Bank of Baroda and State Bank of India were named as respondents in the case.

Bank’s Defence Rejected by Commission

Bank of Baroda argued that it was not liable because the transaction took place at an SBI ATM. The bank claimed it had contacted SBI twice to obtain CCTV footage but did not receive any response. Based on SBI’s records, BoB maintained that the transaction was marked as successful and denied any wrongdoing.

SBI did not appear before the court during the proceedings.

The TOI report revealed that the commission rejected BoB’s arguments. It observed that the customer should not suffer due to issues between banks and emphasised that it was BoB’s responsibility to provide strong evidence proving that the cash had been dispensed.

RBI Guidelines Support Customer’s Claim

The commission referred to RBI guidelines issued in 2019, which clearly state that failed ATM transactions must be reversed within five days. If there is a delay, banks are required to pay Rs 100 per day as compensation to the customer.

In this case, the delay began on 24 February 2017 and continued until the court’s order on 26 February 2026.

Compensation Calculation and Final Order

The total delay amounted to 3,288 days, leading to a compensation of Rs 3,28,800. In addition, the bank has been directed to return the original Rs 10,000 with 9% interest.

The court has ordered Bank of Baroda to complete the payment within 30 days. If the bank delays payment until the final day, the total delay will increase to 3,315 days, raising the compensation to Rs 3,31,500.

This case shows that banks must handle customer complaints properly and cannot pass responsibility to other institutions. It highlights the importance of consumer rights and the need for accountability in the banking sector.

Customers facing similar issues can take confidence from this decision, as it shows that consistent follow-up and legal action can still lead to justice, even after many years.


Inputs from TOI