You can get compensation for delayed re-credit if account debited due to failed ATM transaction

About 16,000 complaints, or 10 percent of all customer grievances at the banking ombudsman offices in FY18, were registered under the head ‘account debited but cash not dispensed at ATM,’ data released by the Reserve Bank of India last week showed. Data also showed that debit card and ATM related complaints saw a 50 percent jump on year.

If your saving account is debited even when your card transaction at an ATM fails then the card issuing bank has to pay compensation of Rs. 100 per day for delay in re-crediting the amount beyond 7 working days from the date of receipt of complaint. This is one of the Reserve Bank of India's rules for failed card transactions at ATMs effective July 1, 2011.

Here are the other RBI rules you should know about if your card transaction at an ATM fails but your account is debited. These are applicable to failed transactions at other banks ATMs and White label ATMs too.


1.Irrespective of use of card at an own bank ATM or other bank ATM or White Label ATMs (WLA), a customer should lodge a complaint with the card issuing bank as soon as possible.

2. As per the RBI, banks are required to display the name(s) and the contact number(s) of concerned officers / toll free numbers / help desk numbers in the ATM box. Similarly, in WLAs, contact numbers of officials / helpline numbers also have to be put up to enable filing of complaints.

3. If transaction at ATM fails but your account is debited then the card issuing bank is required to resolve your complaint by re-crediting your account within 7 working days from the date of complaint.

4. Effective July 1, 2011, the card issuing bank is required to pay compensation of Rs. 100 per day for delay in re-crediting the customer's amount beyond 7 working days from the date of receipt of complaint regarding failed ATM transactions (where the customer's account is debited). The compensation has to be credited to the customer's account without any claim being filed by the customer. However, to be eligible for compensation, the customer has to file the complaint within 30 days of the transaction.

5. If the complaint is not addressed by the customer's bank within the stipulated time or not addressed to the customer's satisfaction, the customer can complain to the banking ombudsman within 30 days of receiving reply from the bank or in case of non-receipt of a reply from the bank within 30 days of lodging the complaint.

The above information has been sourced from the RBI website.