The Reserve Bank of India (RBI) today notified all banks to re-credit the customer’s account within 7 working days of receipt of the complaint relating to a failed ATM transaction. The existing time limit is 12 working days. This directive shall come into effect from July 01, 2011. Banks failing to comply will have to compensate the customer at Rs 100 per day till the issue is resolved. The customer will be entitled to receive this compensation for delay only if the claim is lodged with the issuing bank within 30 days of the date of the transaction.
All disputes regarding ATM failed transactions shall be settled by the issuing bank and the acquiring bank through the ATM system provider only, said the RBI in the notification. The RBI said the step has been taken to bring down the instances of disputes in payment of compensation between the issuing and acquiring banks.