ATM Cash Withdrawal: Account debited but money not dispensed? Complaints rise

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Updated: December 18, 2019 11:23:22 AM

RBI Banking Ombudsman Scheme Report 2019: RBI report on Ombudsman schemes said that around 53 per cent of the total ATM / Debit Cards complaints received by the ombudsman were of ‘Account debited but cash not dispensed by ATMs’ sub-category.

Account debited but cash not dispensed by atmATM-related complaints have grown this year, according to RBI.

RBI Banking Ombudsman Scheme Report 2019: Total ATM /Debit card related complaints received in 2018-19 increased by over 11,500 to 36,539 in 2018-19. This amounted to 18.65 per cent of the total complaints received under RBI Ombudsman scheme in 2018-19, according to a report released by Reserve Bank of India (RBI). Last year, the total number of ATM/ Debit Card related complaints made by consumers was 24,672. (See charts below).

According to RBI’s annual report of Ombudsman scheme, ATM/Debit card related complaints constituted only 15.08 per cent of the total complaints received by RBI’s Banking Ombudsman. The central bank’s annual report on Ombudsman schemes said that around 53 per cent of the total ATM / Debit Cards complaints received by the ombudsman were of ‘Account debited but cash not dispensed by ATMs’ sub-category.

“Complaints relating to ATM / Debit Cards comprised 18.65% of total complaints, up from 15.08% in the previous year. Of the total number of ATM / Debit Cards complaints, a major sub-category was ‘Account debited but cash not dispensed by ATMs’ which accounted for almost 53.00% of the ATM-related complaints,” the central bank said in the report released today. The total number of such complaints were 19,366.

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Category-wise complaints

Source: RBI

ATM/ Debit Card complaints

Source: RBI

RBI has also reported a massive increase in the number of complaints related to digital transactions. “The complaints on the ground relating to digital transactions (mobile, internet, ATM and credit cards) rose by 18,801 to 64,607 complaints and accounted for 32.984.98% of total complaints, a 6.48% increase in share of complaints over the previous year,” RBI said.

“This, however, did not include the digital-related complaints falling under other grounds under the Scheme. The rise in complaints reflects rising popularity of digital modes of transactions,” the central bank said further.

What next?

In order to further strengthen the redressal mechanism for the benefit of consumers, the central bank has planned to take five strategic action plans in 2019-20:

review of Internal Ombudsman Scheme, 2018 for extension to NBFCs;
– review of Consumer Education and Protection Cells (CEPCs) for empowering them on the lines of OBOs;
– review of the Ombudsman Schemes for updation and effective implementation including through convergence;
– formulation of policy to strengthen the system based on Root Cause Analysis (RCA) of major areas of complaint;
– introducing Interactive Voice Response System (IVRS) in CMS for online support to the customers.

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