May 27, 2011
The Chairman and Managing Director / Chief Executive Officers
All Scheduled Commercial Banks including RRBs /
Urban Co-operative Banks / State Co-operative Banks /
District Central Co-operative Banks
Madam / Dear Sir
Reconciliation of failed transactions at ATMs
Please refer to our letter DPSS No. 711 / 02.10.02 / 2008-2009, 1424 / 02.10.02 / 2008-2009 and 101 / 02.10.02 / 2009-2010 dated October 23, 2008, February 11, 2009 and July 17, 2009 respectively on the captioned subject.
2. Reserve Bank has been continuously monitoring the implementation of various directions by the banks. Based on a review of the developments and with a view to further improve the efficiency of operations, it has been decided as under :-
- The time limit for resolution of customer complaints by the issuing banks shall stand reduced from 12 working days to 7 working days from the date of receipt of customer complaint. Accordingly, failure to recredit the customer’s account within 7 working days of receipt of the complaint shall entail payment of compensation to the customer @ Rs. 100/- per day by the issuing bank.
- 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 number of free transactions permitted per month at other bank ATMs to Savings Bank account holders shall be inclusive of all types of transactions, financial or non-financial.
- All disputes regarding ATM failed transactions shall be settled by the issuing bank and the acquiring bank through the ATM system provider only. No bilateral settlement arrangement outside the dispute resolution mechanism available with the system provider is permissible. This measure is intended to bring down the instances of disputes in payment of compensation between the issuing and acquiring banks.
3. The directive is issued under section 18 of Payment and Settlement Systems Act 2007, (Act 51 of 2007).Non-adherence to the provisions of this circular shall attract penalty as prescribed under the Payment and Settlement Systems Act 2007 (Act 51 of 2007).
4. This directive shall come into effect from July 01, 2011
5. Banks may widely publicise these changes at all ATM locations and by individual intimation to customers.
6. Please acknowledge receipt.
The Reserve Bank of India on Friday directed banks to reimburse customers for amounts wrongfully debited from their accounts in failed ATM transactions within seven days of an account holder’s complaint or else pay a Rs 100 per day compensation. “The time limit for resolution of customer complaints by the issuing banks shall stand reduced from 12 working days to seven working days from the date of receipt of customer complaint,” the RBI said in a notification. The RBI further said that all customers are entitled to receive such compensation for delays only if a claim is lodged with the issuing bank within 30 days of the date of transaction. The directive shall be come into effect from July 1, 2011.
Failure to re-credit the amount within seven working days will require the issuing bank to pay a compensation of Rs 100 per day, it said. Earlier, banks were required to reimburse customers for amounts wrongfully debited from their accounts in failed ATM transactions within 12 days.
The central bank instructed the issuing bank and the acquiring bank to settle failed ATM transaction disputes through the ATM system provider only. No bilateral settlement arrangement outside the dispute resolution mechanism available with the system provided is possible,” RBI said. This measure is intended to reduce instances of disputes in payment of compensation between the issuing and acquiring banks, it added.
Act is very nice to hear, but of no use. No one implemented this act. Is any one got compensation whose settlement is not done within 7 days? I have lodged a written complaint with my bank, but the bank never acknowledge my complaint, in such situation how can I prove that I had lodged a complaint on a specific date.Acts are note worthy if implemented properly otherwise of no use
Dear Sir,
You can provide all the documentary evidence including the acknowledgement for having lodged the complaint to the Banking Ombudsmen of your area. Though, it is still in the initial stages of application, might be delayed but your grievance will be resolved. Hope for the best.
ecopackindia team
Same thing is happening with me.No one is ready to launch a complaint (toll free and my home branch).finally i submitted a written complaint letter but its also of no use.they are only giving excuses.15 days is gone and still i don’t have any complaint number and neither my complaint is resolve.
Dear Sir,
Do not delay. Submit a written complaint to the branch manager and also to the concerned department. Immediately lodge a written complaint to the BANKING OMBUDSMEN of your jurisdiction with the acknowledgement and all relevant details like your account number, date, time, atm slip, complaint copy, acknowledgment copy and the amount involved and keep following it up till, it is resolved.
Take care,
EP Team
this rule really works i was paid rs 26000 by the bank.. since it took dem almost 9 months to realize my complaint was true …
Dear sir,
You are lucky, some of our customers did not get the refund till date and are still trying after a year.
ecopackindia team
Sir
In the RBI guidelines on failed ATM transaction` No bilateral settlement arrangement outside the dispute resolution mechanism available with the system provided is possible,” is given which is not
clear. Kindly let me know whether it means can not be complained to ombudsman? In your reply
to one question you had advised to complain to ombudsman they what is mentioned as no bilateral settlement arrangements outside dispute resolution mechanism?
Dear Sir,
It can also be complained, if the dispute or grievance has not been attended to.
ecopackindia team