ATM debited ₹10,000 but dispensed no cash: Kerala consumer commission orders Union Bank to refund customer

A Kerala district consumer commission has held Union Bank of India liable for deficiency in service after an ATM debited ₹10,000 from a customer's account without dispensing any cash, according to a report by Times of India.

Ruling that the bank failed to prove the customer had actually received the money, the commission directed it to refund the amount along with ₹5,000 as compensation for the mental agony and inconvenience caused.

According to the commission's order dated July 27, complainant P.K. Sathian visited a Union Bank of India ATM at Kallai Road in Kozhikode on July 28, 2022, to withdraw ₹10,000 from his savings account. Although the amount was debited from his account, the ATM did not dispense any cash.

Repeated complaints ignored

The complainant immediately informed the bank about the failed transaction. He first submitted a written complaint to the bank's Cherootty Road branch on July 30, 2022. When the amount was still not credited back, he filed another complaint with the Kallai Road branch on August 12, 2022.

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Despite repeated requests, the bank neither refunded the money nor resolved the issue, forcing him to approach the district consumer commission.

During the proceedings, Union Bank of India claimed that the customer had successfully withdrawn the money. To support its case, the bank relied on the ATM's Electronic Journal (EJ) statement, arguing that the transaction had been completed.

CCTV becomes key evidence

The bench comprising President Priya S and member V. Balakrishnan ruled that the bank failed to produce CCTV footage from the ATM, which could have conclusively shown whether the complainant had received the cash.

"CCTV footage is the conclusive proof to prove whether the amount was received by the complainant or not. But the opposite party failed to produce CCTV footage as evidence. EJ statement, is not at all a comprehensive proof in order to establish that the money was received by the complainant," the commission held.

The commission also noted that the complainant had promptly reported the issue and produced copies of his written complaints before the forum.

EJ statement not enough

The commission observed that the Electronic Journal record alone was insufficient to establish that the cash had actually been dispensed. It also found that despite receiving multiple complaints, the bank failed to properly address the customer's grievance or refund the debited amount.

"We hold that there is proof of deficiency of service and also unfair trade practice on the part of the opposite party in not properly addressing the concerns of the complainant," it further noted.

Refund and compensation ordered

Holding Union Bank of India liable, the commission directed the bank to refund the ₹10,000 debited from the complainant's account and pay ₹5,000 as compensation within 30 days.

It further ordered that if the bank failed to refund the amount within the stipulated period, the refund amount would carry 9% annual interest until payment.

"The complainant deserves to be compensated adequately for the mental agony and inconvenience suffered. The complainant is also entitled to get ₹10,000/- which was debited from his account," the bench concluded.