6 Things To Do When Your ATM Does Not Dispense Cash But The Amount Gets Deducted

These days, most of us carry very little cash in hand. It’s easy to see why – with a Debit Card, you can simply walk into the nearest ATM and get money instantly. 

Convenient as this may be, using an ATM can sometimes be tricky. The machine may run out of cash, or your transaction may be declined due to technical reasons. Even worse is when the ATM declines your transaction, yet you receive an SMS saying the amount has been deducted from your account. Usually, you get a follow-up SMS informing you that the amount in question has been reversed. However, there are times when this may not happen. This is especially problematic if the amount happens to be a big one. 

There are three main factors generally responsible for this: 

Technical 

The ATM may be faulty. Usually, as a part of normal procedure, banks check their machines at regular intervals. All the complaints received due to technical reasons are resolved soon after. So, your money should be auto-credited to your account, and the bank will notify you. 

Logistical 

The ATM may run out of cash, so a message is displayed across its screen. If so, any amount deducted is also reversed almost instantaneously. However, the RBI has taken note of the rising instances of ATM cash-outs. With effect from 1st October 2021, the apex bank has ruled that a fine of Rs 10,000 per ATM will be applicable on the operating network responsible if cash-out occurs at any location for more than 10 hours per month. 

Fraud 

It is wise to check the slot before you insert your card. In some cases, a skimmer was inserted into the slot, which could read all your data from the magnetic strip. The stolen information can be used to ‘clone’ your card, and money can be withdrawn from your account.

When you want to recover your money quickly, keeping your transaction slip is crucial as it serves as important proof. Here are six steps you can take if you find yourself needing to address such an issue.

1. Contact customer care

Your first step should be to call the bank's 24-hour customer service helpline. After making a note of your issue and recording your transaction reference number, the executive will register your complaint and will issue you a complaint tracking number. The matter is then investigated. Per the Reserve Bank of India (RBI), any deductible amount must be credited to the customer's account within five working days of the complaint filing. Otherwise, the bank can pay ₹100 per day of delay.

2. Visit the branch 

If the first step hasn't worked, you should visit the nearest branch to issue a complaint at the helpdesk. Again, you will be assigned a complaint tracking number. You should also note down the contact number of the executive you dealt with for smooth follow-ups.

3. Escalate the issue

If your complaint remains unresolved, speak to the manager of the branch where you maintain your account. Contacting a senior person is a quicker way of resolving complaints. You can also visit the bank's website and register a complaint with the grievance cell, which typically deals with complaints of top priority.

4. Contact the ombudsman 

If none of these resolves your complaint, you should take up the matter with the RBI or the banking ombudsman. Such complaints may be submitted in writing either via post or online. However, you must wait 30 days from the complaint registration date before taking this step.

5. National Consumer Disputes Redressal Commission (NCDRC)

Set up under the Consumer Protection Act 1986, the NCDRC is a quasi-judicial body for resolving customer grievances. It has an effective track record and will take steps on your behalf.

6. Legal avenues 

Very few cases require this course of action. If there's no development in your case for a month or so, you can engage legal counsel to act on your behalf.

The intense competition in the banking industry is a boon for customers since banks are now more proactive and quickly resolve complaints. It may take time, effort, and follow-ups from your side, but only in some cases. The important thing is to preserve all pieces of evidence, such as transaction slips, which you can produce in your favour.

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