Banks to return money on failed ATM transaction in 7 days

Some days you might have used the ATM and shocked that the money did not come out or received short by  a few notes.  You might have had to run from pillar to post to get the money back through the existing system.  Now, the Reserve Bank  has directed banks to reimburse customers for amounts wrongfully debited from their accounts in failed ATM transactions within seven days of an account holder’s complaint or else pay a Rs.100 per day compensation.

The RBI in its notification has stated that the time limit for resolution of customer complaints by the issuing banks shall stand reduced from 12 working days to seven working days from the date of receipt of customer complaint.  Failure to re-credit the amount within seven working days will require the issuing bank to pay a compensation of Rs 100 per day, it said.

The RBI further said that all customers are entitled to receive such compensation for delays only if a claim is lodged with the issuing bank within 30 days of the date of transaction.

The central bank instructed the issuing bank and the acquiring bank to settle failed ATM transaction disputes through the ATM system provider only.    The directive shall be come into effect from 1st July, 2011

With this we can expect the improvement in redressal of  dispute about  non receipt of amount or failed transaction and make banking experience smoother.

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