Instances abound wherein bank customers transacting business on other bank ATMs (automated teller machines) are made to regret their decision.

And often in no less ‘telling’ a manner than being delivered a debit shock, as reported to the office of banking ombudsman (OBO) for Kerala, Lakshadweep and Mahe.

DEBIT SHOCKER

Here, the customer account got debited many times over for amount asked for, even as the automated dispenser delivered pure zilch.

He had tried to withdraw an amount of Rs 10,000 from the ATM of another bank, but was declined. Three consecutive attempts also failed.

He found a week later that his account was debited by Rs 40,000. The erroneous debits were referred to his bank (base bank).

The latter, as too the acquiring bank, informed him that the transactions were successful and that no excess cash was found in the ATM.

COMPLAINT FILED

He then approached the OBO, which initiated action by calling for comments/ machine reports from both banks. The complaint was filed with his bank on November 29, 2011 and with the OBO on January 19, 2012.

The base bank furnished EJ (electronic journal) and JP (journal print) log of the disputed transactions.

The ATM reconciliation centre of the acquiring bank had reported the transactions to be successful and that no excess cash was found.

The machine reports showed that all four transactions had occurred in a time span of three minutes and 34 seconds.

EXCEEDED LIMIT

The acquiring bank stated that the cardholder had first tried to withdraw Rs 15,000. This was declined as it had exceeded the limit of Rs 10,000 at a time fixed on ‘other bank’ customers for cash withdrawals.

The customer then made more attempts. Since the base bank allowed a maximum withdrawal of Rs 40,000 on other bank ATMs in a day, it was likely that the debit might have taken place.

But the bank also stated that four consecutive successful cash withdrawals could not happen in three minutes and 34 seconds.

In the light of clarifications furnished by the acquiring bank, the base bank was directed to restore to the complainant the amount of Rs 40,000 together with compensation for the delay. The bank paid the customer an amount of Rs 55,700.

What the regulator prescribes

Banks that fail to resolve ATM complaints within seven working days will have to pay customers Rs 100 per day as compensation.

As per extant instructions, banks have been mandated to resolve customer complaints within seven working days from the date of receipt of complaint.

The compensation has to be credited to the account of the customer without any claim being made by the customer.

If the complaint is not lodged with the issuing (base) bank within 30 days of transaction, the customer is not entitled to any compensation for delay in resolving his/her complaint.

In the case cited here, the OBO advised the bank to credit Rs 40,000 plus applicable compensation for delay in credit to the complainant’s account.

On May 5, 2012, it reported having credited Rs 55,700 (as applicable for 164 days from November 29, 2011 to May 10, 2012, less seven days) to the account.

> vinson.kurian@thehindu.co.in

(Disclaimer: “The Reserve Bank of India does not vouch the correctness, propriety or legality of orders passed by Banking Ombudsman. The object of placing this in public domain is merely for the purpose of dissemination of information on the working of the Banking Ombudsman Scheme.”)

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