Failed ATM Transaction: Consumer Court Orders Bank to Pay ₹48,400 to Delhi Woman
A Delhi consumer court directed Bank of India to refund ₹10,000 and pay ₹38,400 compensation after failing to reverse a failed ATM transaction for months. The ruling reinforces RBI guidelines on delayed ATM transaction reversals and consumer rights.
Verdicto News Desk 
A consumer court in Delhi has directed Bank of India to refund ₹10,000 to a woman and pay an additional ₹38,400 as compensation and litigation costs after the bank failed to reverse a failed ATM transaction for several months.
The order, passed on May 22 by the District Consumer Disputes Redressal Commission, held the bank liable for deficiency in service, reiterating that banks cannot delay reversing failed ATM transactions without consequences.
What Happened?
The complainant, Chanda, a resident of Jahangirpuri, Delhi, attempted to withdraw ₹10,000 on May 26, 2022, from a Union Bank of India ATM.
Although the transaction was declined and no cash was dispensed, the amount was debited from her Bank of Indiaaccount.
After noticing the wrongful debit, she approached the bank and formally lodged a complaint on June 7, 2022, requesting reversal of the amount. Despite repeated follow-ups, the money was not returned.
What Did the Consumer Court Say?
The bench comprising President Divya Jyoti Jaipuriar and Member Rashmi Bansal observed that RBI rules are intended to protect consumers from delays and ensure accountability among banks.
In its order, the Commission noted:
“RBI guidelines regarding compensation for delayed reversal are intended not merely to ensure expeditious resolution of grievances relating to failed ATM transactions and prompt reversal of customer funds, but to compensate the customer so that bank's accountability be fixed against casual handling of failed ATM transaction complaints by banks.”
The Commission further highlighted that customers place trust in banks to keep their money secure and to rectify failed transactions promptly.
RBI Rule on Failed ATM Transactions
The Commission relied on Reserve Bank of India (RBI) guidelines, which require banks to:
- Reverse failed ATM transactions within five days
- Pay ₹100 per day as compensation for delays beyond the prescribed period
Importantly, the court clarified that the responsibility lies with the card-issuing bank, even if the failed transaction occurred at another bank’s ATM.
Compensation Awarded
The Commission directed Bank of India to pay:
- ₹10,000 — Refund of wrongly debited amount
- ₹20,400 — Compensation for delayed reversal (₹100 per day)
- ₹10,000 — Mental agony and harassment
- ₹8,000 — Litigation expenses
Total: ₹48,400
The amount must be paid within 30 days, failing which 9% annual interest will apply until payment.
Why This Order Matters
The ruling reinforces a key consumer protection principle: failed digital transactions are not merely technical glitches—they carry financial and legal consequences when institutions fail to act.
For consumers, the order serves as a reminder to:
