buyers beware!
How to get refund
pushpa girimaji

Last month, I tried to withdraw Rs 6000 from an ATM using my debit card. After I punched my PIN and the amount, the transaction was declined. However, I was shocked to see later that the amount had been debited from my account. I complained to the bank, but the bank is not doing anything. How do I get back my money?

The Reserve Bank of India (RBI) directive of May 27, 2011, titled "Reconciliation of transactions at ATMs failure - Time limit", makes it absolutely clear that in all cases of failed ATM transactions, where the amount is deducted from the account of the depositor despite the ATM's failure to dispense the money, the banks have to credit the debited amount within seven days of receiving the complaint. Any failure to do so will attract a penalty of Rs 100 per day, for every day's delay. "And this compensation shall be credited to the customer's account automatically without any claim from the customer, on the same day when the bank affords the credit for the failed ATM transaction", the regulator has said.

It has also made it clear that non-adherence to the provisions of this circular shall attract penalty as prescribed under the Payment and Settlement Systems Act 2007. So please write to the Nodal officer of the bank immediately and demand that the bank comply with the RBI directions and credit the amount along with compensation , calculated at the rate of Rs 100 per day to your account. You can also send a copy of the complaint to the banking regulator.

If you still do not get the money, file a complaint with the Banking Ombudsman. . You can complain online. You can get the details, addresses and e-mail IDs of Banking Ombudsmen on the RBI website www.bankingombudsman.rbi.org.in

In a similar case where the bank failed to reverse the transaction for over a year, despite confirmation that the amount had not been dispensed, the Banking Ombudsman directed the bank to pay compensation to the complainant at the rate of Rs 100 per day as directed by the RBI, interest at the bank rate plus two percent from the due date of payment of the penalty amount to the date of actual payment and Rs 3,000 towards expenses relating to the follow up of the complaint and also for not bothering to respond to the Ombudsman. (Annual report of the Banking Ombudsman, 2010-2011)

I was sitting at home, watching TV when I got a message on my mobile saying that Rs 10,000 has been withdrawn through an ATM transaction. I immediately called up the bank and complained, but the bank is not listening. They are insisting that I have withdrawn the money! What do I do?

Lodge a complaint with the police (Economic offences wing) immediately. Their investigation should help you get your money back. Simultaneously, complain to the Nodal Officer of the bank.. Since it is easy to locate the ATM from which the money was withdrawn, camera footage of that day will reveal the fraud. If the Nodal Officer does not respond positively, lodge a complaint with the Banking Ombudsman (BO). If you see the annual report of the BO Scheme for 2010-2011 , released in February 2012 by the RBI, you will find an important order of the BO in a case of fraudulent ATM withdrawal. Here the banks were arguing that without the card and the PIN, it was not possible for anyone to withdraw money from ATMs, , but video footage revealed otherwise. The BO asked the bank to refund the money.

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