ATM dispensed Rs 1,000 against Rs 10K withdrawal; bank told to pay Rs 16,000 compensation

Since the customer held a bank account and used a bank-issued card, the bank had to resolve the complaint and restore the wrongly deducted money. 73 lakh to retired principal duped in cyber fraud What happened at the bank ATM According to the complaint, the man needed money for his wife’s medical treatment. On March 10, 2017, he used an ATM operated by another bank to withdraw Rs 10,000 from his bank account.

The machine, however, allegedly dispensed only Rs 1,000. Despite this, Rs 10,000 was debited from his account, leaving Rs 9,000 unaccounted for. The customer did not wait to raise the issue. He filed an online complaint with the bank within three hours of the transaction and later submitted a written complaint as well. Bank’s response and the missing evidence The Indian Express report further stated that the bank maintained that the transaction was genuinely for Rs 10,000 and that the amount had been transferred.

The ATM operator also denied responsibility. During correspondence between the bank and the ATM agency, CCTV footage from the machine could not be obtained. The customer then approached the banking ombudsman, but his complaint was rejected on October 16, 2017, and he was told to seek relief elsewhere. That led him to the Udaipur District Consumer Commission, where he sought the refund of Rs 9,000, interest, and compensation for the trouble caused by the failed withdrawal and delayed redressal.

Why the commission held bank responsible The bench, comprising president Suman Gaur and member Manish Parmar, passed its order on September 24. It found that the customer had withdrawn only Rs 1,000, while Rs 10,000 had left his bank account. The commission also noted that he had reported the problem promptly and that the bank had sought CCTV footage from the ATM agency. But the bank did not ensure that the extra deducted amount was credited back to his account.

“Bank, while showing negligence in the matter, shifted responsibility onto the ATM agency; however, no necessary action was taken to credit the additionally deducted amount back into the complainant’s account, which fully establishes the deficiency in service rendered by bank to the complainant,” the commission said. Bank had argued that, if there was a fault in the transaction, only the ATM service provider could investigate and explain it.

The commission rejected that position. “The complainant was a customer of the bank and, in the event of any untoward incident, he would naturally approach the bank with his complaint,” it observed, The Indian Express report added. It also awarded Rs 7,000 towards compensation and litigation costs. AmountPurposeRs 9,000Refund of the excess debitRs 7,000Compensation and legal costsRs 16,000Total awarded to the customer The order makes clear that the bank maintaining the savings account and issuing the debit card cannot avoid accountability by pointing to the ATM operator, even when the transaction takes place at another bank’s machine.

What this means for customers The ruling reinforces that customers should report an ATM discrepancy immediately, preserve the transaction SMS or receipt, and follow up in writing. In this case, the customer’s quick complaint and continued follow-up became important parts of the record before the commission. Bank’s own customer-grievance policy also recognises cases where an account is debited but cash is not dispensed, providing for compensation of Rs 100 per day after the prescribed re-credit period in applicable ATM cases.

Customers facing a similar issue can approach the bank’s grievance channels, the banking ombudsman, or consumer commissions. The National Consumer Helpline can also be reached at 1915 for guidance on consumer grievances.