Cash not withdrawn from ATM, but money deducted from account? Don’t panic, if refund is not received within 5 days, the bank will pay compensation of ₹ 100 per day.

Even in the digital era, cash withdrawal from ATM for emergency needs is an important part of life. Many times it happens that you swipe the card in the ATM machine, enter the PIN, the sound of counting notes comes from the machine, but the message ‘Transaction Failed’ or ‘Time Out’ appears on the screen. Within a few seconds, an SMS comes on your mobile that money has been deducted from your account. In such a situation, it is natural for any customer to get nervous. But do you know that the Reserve Bank of India (RBI) has set very strict guidelines to protect the financial rights of customers? If the bank does not return your deducted money within the stipulated time limit, then the bank has to pay a compensation of ₹ 100 per day to the customer from its own pocket.

As per the RBI circular, there are clear timelines for automatic resolution of transaction failure at ATMs (Harmonisation of Turn Around Time – TAT):

• T+5 working day rule: Here ‘T’ means Date of Transaction. The bank has to automatically reverse (credit) the amount of the failed transaction to the customer’s account within the next 5 banking working days from the day your transaction failed.

• ₹100 per day compensation: If the bank fails to return the money within the stipulated T+5 working days, the bank is legally mandated to credit the customer’s account as compensation at the rate of ₹100 per calendar day automatically without any request from the 6th day until the money is credited to the account.

• Irrespective of which bank’s ATM: This rule applies equally to all types of ATMs—whether you have used your home bank’s ATM or tried to withdraw from another bank’s (White Label/Third Party ATM). The primary responsibility for paying the compensation lies with your account holder bank (Issuer Bank).

If this happens to you, instead of panicking or re-entering the PIN again and again on the machine, follow the procedure below:

1. Keep transaction slips safe: If a slip comes out of the machine, do not throw it away. It contains the exact details of Transaction ID (Txn ID), ATM ID, date and time. If the slip is not received, then keep the screenshot of the bank SMS received on the mobile safe.

2. Wait near the machine for a few minutes: Sometimes due to slow network the machine spits out cash after 1-2 minutes. Make sure that ‘Welcome’ or ‘Transaction Cancelled’ appears on the screen.

3. Register a complaint immediately with customer care: Call your bank’s toll-free number and lodge a complaint giving details of the incident. Note down the ‘Ticket/Complaint Reference Number’ received on call in your diary.

4. Online Complaint through Net Banking or Bank App: Register the claim directly in the bank’s official mobile app or net banking portal by selecting ‘Dispute Transaction’ or ‘Report Failed ATM Withdrawal’ option.

If your money is not returned even after 5 working days and the bank is reluctant to give compensation, here are the steps you can take:

• Write to the Principal Nodal Officer of the Bank: First of all escalate your complaint online to the Zonal or Principal Nodal Officer of your bank.

• Contact with RBI Integrated Banking Ombudsman: If the bank does not resolve your problem or does not give a satisfactory reply within 30 days of filing the complaint, you can contact the Reserve Bank of India on its CMS portal (cms.rbi.org.in) You can directly lodge a complaint on. After the intervention of the RBI Ombudsman, the bank has to pay the principal amount as well as ₹ 100 compensation for each day of delay along with interest.

Due to this transparent rule of RBI, it has now become impossible for banks to keep customers’ money stuck under the guise of technical glitches. Be aware, know your rights and instead of panicking when such a situation arises, get your full refund and compensation as per the prescribed banking rules.