RBI makes banks liable to pay compensation for failed ATM transactions
18 Jul 2009
Banks will now have to pay account holders a compensation of Rs100 per day for every day of delay in reversing a failed ATM transaction.
The Reserve Bank of India (RBI) has made banks liable to compensate customers in case customers are not able to withdraw cash through ATMs. Banks will now have to pay Rs100 per day for each day of delay in reversing a failed ATM transaction.
In a circular issued on Friday, RBI has said that cusomers' accounts must be re-credited within 12 working days from the date of receipt of the complaint.
The central bank said in the circular, "It is mandatory for the banks to reimburse the customers, the amount wrongfully debited on account of failed ATM transactions, within a maximum period of 12 working days."
The move to hold banks liable to customers comes in response to customer complaints over delays they are made to suffer in getting back the money erroneously debit from failed ATM transactions.
Additionally, the central bank has directed banks to credit the customers' account on their own instead waiting for the customer to make a claim.
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