Banks to reimburse within 12 days in failed ATM transactions

Last Updated: Friday, July 17, 2009 - 23:21

New Delhi: The Reserve Bank of India today
asked banks to reimburse customers the amount wrongfully
debited from their accounts in failed ATM transactions within
12 days of the customer complaint.

Failure to re-credit within 12 working days will require
the bank to pay a compensation of Rs 100 per day and this will
be credited on the same day when the bank pays back the
debited amount for the failed ATM transaction, it said.

"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 central bank said in a notification.

RBI said it has received a number of complaints regarding
non-adherence of banks to the instructions and that different
banks have put in place different cut-off limits for cash
withdrawals for other bank customers.

The issuer bank, RBI said, is entitled to claim such
compensation from the acquirer bank if delay is attributed to
the latter. Also, the ATM network operators will have to
compensate the banks for any delay on their part.

The central bank instructed the banks to extend the scope
of concurrent audit to cover cases of delay in reimbursing the
customers for failed ATM transactions.

Bureau Report




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