ATM debits Rs 10,000 but does not dispense cash; bank ordered to pay Rs 59,600

New Delhi: A Delhi consumer commission has directed Punjab and Sind Bank to refund Rs 10,000 to a customer after finding that the amount was debited from his account during an ATM transaction even though no cash was dispensed.

The District Consumer Disputes Redressal Commission also ordered the bank to pay Rs 29,600 as compensation for the delayed reversal of the failed transaction, Rs 10,000 for mental agony and harassment, and Rs 10,000 towards litigation expenses.

The order was passed by a bench headed by commission president Divya Jyoti Jaipuriar and member Rashmi Bansal on a complaint filed by Jitender Singh.

Singh had claimed that he attempted to withdraw Rs 10,000 from an Axis Bank ATM in Ghaziabad on December 5, 2022. While he received a transaction message and the amount was debited from his Punjab and Sind Bank account, the ATM did not dispense any cash.

Bank failed to prove cash was dispensed

Punjab and Sind Bank told the commission that it had registered Singh's complaint and forwarded it to Axis Bank, which rejected the claim on the grounds that the transaction had been successful. The matter was later referred to the ATM cell/arbitration but was again rejected.

The consumer commission, however, said the bank had failed to produce reliable technical records to establish that the cash had actually been dispensed.

It noted that the bank had not submitted the ATM journal, cash balancing report, electronic journal, CCTV footage, switch-level reconciliation report or any other evidence showing that Singh had received the money.

"The mere recording of a transaction as 'successful' in the electronic system cannot, by itself, conclusively establish that cash was actually dispensed to the customer," the commission said.

The commission also noted that the bank had acknowledged registering the complaint and corresponding with the acquiring bank. Therefore, Singh's claim could not be dismissed as belated or fabricated.

RBI rules cited on failed ATM transactions

The commission relied on the Reserve Bank of India's framework for failed ATM transactions, under which money debited from a customer's account when no cash is dispensed must be reversed within T+5 calendar days.

A compensation of Rs 100 per day is payable for any delay beyond this period.

The commission said the bank could recover the amount or compensation from the acquiring bank through the inter-bank mechanism if the delay was attributable to that bank. However, such a dispute between banks could not be passed on to the customer.

"The issuing bank may, in accordance with the inter-bank mechanism, recover the amount or compensation from the acquiring bank if the delay is attributable to the latter. Such inter se liability between the banks cannot be shifted upon the consumer," the bench said.

The commission held that the failure to reverse the amount within the prescribed period amounted to deficiency in service and that an inter-bank dispute could not affect the customer's right to a prompt refund.

The bank has been directed to pay the ordered amounts within 45 days. If it fails to do so, the outstanding amount will carry interest at nine per cent per annum from the date of default until realisation.