What to do in case of failed ATM transaction if amount debited from account and cash not dispensed by ATM – No Doubt, Automated Teller Machines (ATMs) have made our life much easy as we do not need to fill up form and stand in long bank queues to withdraw cash from bank account. Also we can withdraw cash from bank account round the clock, anywhere. But sometimes many ATM users some issues using ATM for cash withdrawal. A common issue faced by ATM user is “FAILED ATM TRANSACTION BUT AMOUNT DEBITED FROM ACCOUNT”. A failed ATM transaction may occurs due to any of the reasons – like wrong ATM PIN, Connectivity Issues, ATM is out of cash, any technical error etc.

Here in this article, we will discuss what to do if ATM transaction failed, amount debited from bank account but not dispensed by the ATM machine.

There may be following issues faced by ATM users.

  • No cash dispensed by ATM, Account debited with that amount.
  • Partial amount dispensed by ATM. For example, account debited with ₹2000/- rupees but only ₹1000/- is dispensed by ATM.
  • Whole amount dispensed by ATM but customer leaves without collecting cash and ATM retract the cash.
  • Account debited twice for single transaction.

RBI’s directive for resolution of ATM failed transactions complaints

With an aim to improve efficiency of operations related to resolutions of customer’s ATM related complaints, RBI has issued some directives dated May 27, 2011 titled “Reconciliation of failed transactions at ATMs” which are as follows –

Bank have to re-credit the wrongly debited amount within 7 days from the date of receipt of complaint. Accordingly, failure to do so shall attract penalty of ₹100/- per day beyond 7 days, payable to the customer 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 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).

Important Points to note when you face such issues

Most of the times, account gets automatically credited back on same day or within reasonable time and you also get notification via SMS. But if you havn’t received the SMS or credit in your account, you must start follow up for money back.

But before proceeding for follow up, it is important to note that you should keep the transaction slip safe because it contains following important information about your failed ATM transaction.

  • NAME OF ATM BANK – Refer to the ATM of the corresponding bank in which transaction was made.
  • LOCATION – ATM branch
  • TRANSACTION REFERENCE NUMBER – Generally 8-9 digit number that appears on the transaction slip.
  • CARD NUMBER/ACCOUNT NUMBER – Last 3-4 digits will be visible.
  • NATURE OF TRANSACTION – Refer to nature of activity carried out using ATM Card such as Cash withdrawal, Mini Statement, Updating account details etc.

What to do for reversal of ATM failed transaction

1. Customer Care

Most of the banks provide facility of customer care for Redressal of customer complaints. You can call your respective banks customer care number, usually written on backside of your ATM card.

After confirmation of your identity by confirming other details, you can lodge your complaint by informing the customer care executives about the ATM failed transaction.

He will lodge your complaint and issue a complaint number or reference number for future follow up.

After through verification by the bank , if it was genuinely fault of bank, you will get your money back to your account within 7 days.

2. Branch

If your complaint still hasn’t been resolved or you are unable to contact the bank by customer care number then you must visit your bank’s branch to register the complaint. They will look into the matter and help you to get re credit your bank account.

3. Grievance Cell

It is exclusive department of bank dealing with customer complaints or grievances. It is headed by an executive of the rank of General Manager. You can visit bank’s website for address or helpline no. of the respective bank.

4. Bank Ombudsman

If still your complaint not resolved after your continuous follow up or other means, you can complaint to the RBI or banking ombudsman directly but after 30 days of the day you written complaint to bank. Complaints can be sent by post in writing or you can also submit your complaint via online mode.

5. National Consumer Disputes Redressal Commission (NSDRC)

NSDRC, India is a quasi judicial commission in India headed by a sitting or retired judge of Supreme Court of India. It was setup in 1988 under the Consumer Protection Act,1986. If your complaint still persists or not resolved then you may approach NSDRC to get your complaint resolved.

However, you  will not require to go beyond banking ombudsman but in worst case you may need to go through legal route.

6. Legal

Go to nearest district court and file case against bank. This is the last route for final resolution of your complaint and recover all the legal expense incurred by you.


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