Banks are so particular about timelines when it comes to recovering EMIs from customers. But when it comes to re-crediting amounts wrongfully debited from a customer’s account, they suffer from sudden amnesia. I refer here to the RBI guidelines on resolving customer complaints pertaining to “failed ATM transactions”.

As per the revised RBI directive on the subject, issued on May 27 this year, banks are supposed to remit to the account of the customer amounts wrongfully debited following a failed ATM transaction within seven days. If not, banks have to pay the customer penalty at the rate of Rs 100 per day till the date the amount is credited. And this timeline has come into effect from July 1.

Earlier, through its circular of July 17, 2009, the RBI had given banks 12 days’ time for reconciliation of the account. If the bank failed to stick to this deadline, it had to pay Rs 100 per day to the aggrieved consumer. Now, it has reduced this time limit to seven days and has directed banks to widely publicise this change at all ATMs and also by individual intimation to customers. I wonder how many banks have followed that last bit of advice?

In fact, the RBI has clarified that penalty for any delay has to be credited to the customer’s account automatically without any claim from the customer, on the same day the bank re-credits the amount. However, banks take advantage of the consumers’ lack of awareness of the RBI directive and try to avoid paying the penalty.

So, whenever the ATM fails to dispense the money that you asked for, check your account to make sure that the amount is not wrongly debited. If it has been, follow these steps. First, send the bank a written complaint, giving details of your case including the ATM transcript. This has to be done within 30 days. Second, refer to the RBI directive of May 27, 2011, titled “Reconciliation of transactions at ATMs failure — time limit”. Remember your money has to be credited within seven working days of your complaint. If not, the bank has to pay you penalty at the rate of Rs 100 per day.

If the bank fails to follow the RBI directive, complain to the bank’s nodal officer and if he fails to act too, go to the banking ombudsman for redress. You can get the details of banking ombudsmen on the RBI website (www.bankingombudsman.rbi.org.in) and complain.