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Banks to redress ATM related complaints within 7 days: Finmin

The government informs Parliament that banks have been told to redress customer complaints of ATMs not dispensing cash despite debiting the amount within seven working days, and pay compensation at the rate of Rs 100 per day thereafter.

The government on Tuesday informed Parliament that banks have been told to redress customer complaints of ATMs not dispensing cash despite debiting the amount within seven working days, and pay compensation at the rate of Rs 100 per day thereafter.

"The time limit for resolution of customer complaints by the issuing banks has been reduced from 12 working days to 7 working days from the date of receipt of customer complaint," the Minister of State for Finance Namo Narain Meena said in a written reply in the Rajya Sabha.

The Minister said this while answering a question with regard to erratic functioning of ATM machines.

"Failure to re-credit the customer's account within 7 working days of receipt of the complaint shall entail payment of compensation to the customer at the rate of Rs 100 per day by the issuing bank", the Minister said referring to the RBI guidelines.

The customer, he added, will be entitled to the compensation, provided the claim is lodged within 30 days of the date of transaction.

The RBI has been receiving complaints from the bank customers regarding non-disbursement of funds from ATMs despite debiting of the same from the accounts. The banks are taking considerable time in reimbursing the amount involved in account of the card holder in such failed transactions.

The non-adherence of the RBI guidelines by the banks, Meena said, would attract penalty under the Payment and Settlement Systems Act, 2007.