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Consumer Court Pulls Up Bank of India Over Delayed ATM Refund
A consumer court has directed Bank of India to refund ₹10,000 to a woman after a failed ATM transaction amount was not reversed for several months. The court also ordered the bank to pay compensation and litigation costs, holding it guilty of deficiency in service.
A consumer court has directed Bank of India to refund ₹10,000 to a woman and pay additional compensation along with litigation costs after the amount deducted during a failed ATM transaction was not reversed for several months.
The order was passed by the District Consumer Disputes Redressal Commission bench comprising President Divya Jyoti Jaipuriar and Member Rashmi Bansal. The Commission held the bank guilty of deficiency in service for failing to promptly reverse the amount despite the customer not receiving cash from the ATM.
In its May 22 order, the Commission observed that the Reserve Bank of India (RBI) guidelines on compensation for delayed reversal of failed ATM transactions are intended not only to ensure speedy grievance redressal but also to establish accountability among banks for casual handling of such complaints.
The Commission stated that banks are obligated to promptly address customer grievances related to failed ATM withdrawals and compensate customers for inconvenience caused by delays.
The case highlights the importance of consumer rights and regulatory compliance in banking services, especially in digital and ATM-based transactions where customers increasingly depend on timely and secure financial operations.
Consumer rights experts note that RBI regulations mandate time-bound reversal of failed ATM transactions, and banks may face penalties or compensation liabilities if delays occur without valid justification.