RBI directs banks to redress failed ATM transaction grievances in 12 days
28 May 2011
In a move that will bring some relief to bank customers, the Reserve Bank of India (RBI) yesterday said that issues regarding failed ATM transactions should be resolved within seven days.
At present banks are expected to clear such issues within 12 days. The new timeline for reconciliation of failed ATM transaction would be effect from 1 July.
The bank further said that in case parties involved in such transactions - one or more banks and the ATM operator failed to resolve the customer's complaint within seven days of the complaint being lodged, the customer would be liable for compensation from his / her bank at the rate of Rs100 per day till the day the complaint is resolved.
The central bank, however, said customers would need to lodge such complaints of failed ATM transactions within 30 days of the occurrence.
"Any customer is entitled to receive such compensation for delay, only if a claim is lodged with the issuing bank within 30 days of the date of the transaction," the central bank said in a notification.
The RBI also said that the number of free transactions permitted per month at ATMs of other banks for savings bank customers would include all types of transactions, financial and non-financial.
Further, the apex bank said, in order to bring down cases of compensation to customers being held up due to disputes between the parties involved in a transaction, all such disputes should be settled by the issuing bank and the acquiring bank through the ATM system provider only.
