ibnlive » Business

Jul 18, 2009 at 12:31am IST

Banks will have to pay if their ATMs mess up

New Delhi: The Reserve Bank of India on Friday asked banks to reimburse customers money wrongfully debited from their accounts in failed ATM transactions.

Failure to re-credit within 12 working days will require the bank to pay a compensation of Rs 100 per day and this will be credited on the same day when the bank pays back the debited amount for the failed ATM transaction, it said.

"It is mandatory for the banks to reimburse the customers, the amount wrongfully debited on account of failed ATM transactions, within a maximum period of 12 working days," the central bank said in a notification.

IT'S YOUR MONEY: Reserve Bank of India issues rules on faulty ATM transactions.

The Central bank said it has received a number of complaints regarding non-adherence of banks to the instructions and that different banks have put in place different cut-off limits for cash withdrawals for other bank customers.

The issuer bank, RBI said, is entitled to claim such compensation from the acquirer bank if delay is attributed to the latter. Also, the ATM network operators will have to compensate the banks for any delay on their part. The central bank instructed the banks to extend the scope of concurrent audit to cover cases of delay in reimbursing the customers for failed ATM transactions.

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