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.
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 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.
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.
DPSS.PD.No.2632 / 02.10.002 / 2010-2011
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 :-
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.
Chief General Manager