Banks are particular about time when it comes to recovering EMIs from customers. But when it comes to re-crediting amounts wrongfully debited from a customer’s account, they suffer from sudden amnesia. Refer here to the RBI guidelines on resolving customer complaints pertaining to failed ATM transactions. As per the revised RBI directive issued on May 27 this year, banks have to remit to the account of the customer, amounts wrongfully debited following a failed ATM transaction within seven days. If not, banks have to pay the customer penalty at the rate of Rs 100 per day till the date the amount is credited to the account. This time-line has come into effect from July 1. Earlier, through its circular of July 17, 2009, the RBI had given banks 12 days’ time for re-conciliation of the account. If the bank failed to stick to this deadline, it had to pay Rs 100 per day to the aggrieved consumer. Now it has reduced this time limit to seven days and has directed banks to widely publicise this`A0change at all ATM locations and also by individual intimation to customers. I wonder how many banks have followed the last advice. In fact it was way back in October 2008 that the RBI responded to a large number of complaints about this issue and directed banks to pay back the money to the consumer within 12 days. Said the RBI in its circular dated October 23, 2008: " Of late, we have been receiving a number of complaints from bank customers, regarding debit of accounts even though the ATMs have not disbursed cash for various reasons. More importantly, banks take considerable time in reimbursing the amounts involved in such failed transactions to card holders. In many cases, the time taken is as much as 50 days."
"After examining the procedures involved in verification and resolution of such complaints, the Reserve Bank has concluded that delay of the magnitude indicated above is not justified, as it results in customers being out of funds for a long time for no fault of theirs. Moreover, this delay can discourage customers from using ATMs. Therefore, it has been decided that, to start with, banks shall reimburse to the customers the amount wrongfully debited within a maximum period of 12 days from the date of receipt of customer complaints", the RBI said. As banks failed to adhere to the deadline and consumer complaints continued, the RBI decided to get tough with the banks. So in its circular of July 17, it not only mandated a penalty`A0for delays, but also insisted that banks place before the board of directors, a quarterly report on the quantum of penalties paid and action taken to avoid recurrence, and the board shall send this report along with its observations to the Reserve Bank, it said. It also warned banks that non-adherence to the directives would invite regulatory action. In its latest circular of May 27, 2011, it has reiterated these points while reducing the time limit for remitting the account to seven days. So whenever the ATM fails to dispense the money that you asked for, check your account to make sure that the amount is not wrongly debited from your account. If it has been, then follow these steps:
(1) First and foremost, give the bank a written complaint giving details of your case, including the ATM transcript. This has to be done within 30 days.
(2) Refer to the RBI directive of`A0May 27, 2011, titled "Reconciliation of`A0transactions at ATMs failure — time limit." Remember, your money has to be credited within seven working days of your complaint. If not,`A0the bank has to pay you penalty at the rate of Rs 100 per day.
If the bank fails to follow the RBI directive, complain to the Nodal Officer of the bank, and if he fails to act, too, go to the Banking Ombudsman for redress of your complaint. You can get the details, addresses and e-mail IDs of the Banking Ombudsmen on the RBI website (www.bankingombudsman.rbi.org.in) and can complain online.
The Sunday Tribune
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