1. Banks liable to pay Rs 100 per day as penalty for delay in reimbursement for failed ATM transactions

Banks liable to pay Rs 100 per day as penalty for delay in reimbursement for failed ATM transactions

Are you aware that banks are liable to pay Rs100 a day penalty for any delay in reimbursement for failed ATM transactions? As per the RBI instructions, banks have been mandated to resolve customer complaints by re-crediting the customer’s account within 7 working days from the date of complaint.

By: | Updated: February 28, 2017 5:31 PM
If you are facing any issue pertaining to a failed ATM transaction and still, you are not being paid by the bank, then keeping in mind the below-mentioned things will be helpful for you:

Are you aware that banks are liable to pay Rs100 a day penalty for any delay in reimbursement for failed ATM transactions? As per the RBI instructions, banks have been mandated to resolve customer complaints by re-crediting the customer’s account within 7 working days from the date of complaint. And if the complaint is not resolved within the given time-frame, then they are liable a pay a penalty.

If you are facing any issue pertaining to a failed ATM transaction and still, you are not being paid by the bank, then keeping in mind the below-mentioned things will be helpful for you:

What is the time limit for resolution of the complaint?

In case of the customer’s complaint (pertaining to a failed ATM transaction), the bank is supposed to re-credit the customer’s account within 7 working days if the issue of complaint is genuine. In case of the failure to re-credit the customer’s account within that time period, the bank is liable to pay Rs 100 per day as a compensation to the customer.

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Where should the customer lodge a complaint in such a case?

Many a time it happens that one’s account gets debited, but cash does not get dispensed at the ATM. In such a case, the customers have to approach their home branch bank which has issued that ATM card to lodge a complaint in the event of a failed ATM transaction.

What is the option for a card holder if his complaint is not redressed by the bank properly?

If your complainant does not get a satisfactory response from the bank within a maximum period of 30 days from the date of your lodging the complaint, you will have the option to approach the Office of the Banking Ombudsman (in the appropriate jurisdiction) for redressal of your grievances.

How are the transactions done through cards protected against fraudulent usage?

Debit, credit or prepaid cards are assigned with PIN which is only known to the user for carrying out any transactions at an ATM. However, for making transactions at a POS too, the card holder has to enter the PIN which is known only to the cardholder if it is a debit card. In the case of a credit card usage at a POS, the requirement of PIN depends on the bank’s policy on security and risk measures. In the case of e-commerce transactions, an additional factor of authentication is applicable like OTP identification check, e-mail verification code check, etc., except in the case of many international websites.

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What are the liabilities and responsibility of a bank in case of a fraudulent usage?

If a transaction has taken place without the additional factor of authentication, as mandated by the RBI, and if the customer has complained that the transaction has not been carried out by him, then in such a case the issuer bank shall reimburse the loss to the customer without raising any objection.

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  1. A
    akhil
    Apr 13, 2017 at 2:11 pm
    Can i know the source of this information, because i would like to file a complaint with the right proof( words from the govt officials will be stronger than getting info from blocks)
    Reply

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