What to Do If ATM Does Not Give Cash but Money Got Debited From Account?

Your concern is genuine. The ATM has not given the money. But, you have got the message of debit from your bank account. What to Do? Will you get back the money? How much time will it take and what is the process of complain. This post would guide you to mitigate this situation.

I hope, most of you reading this post, after facing this problem. You are not alone. In 2018, there were 16000 complaints of not getting cash from the ATM. This was 10%, the highest,  of all the banking complaints. So let is me guide you step by step process to deal with this problem.

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1. Don’t Panic, Note down the Details

The ATM whirred but money did not come out. Moreover, you got the message of money debit. You need to inform the bank. But will bank believe this? What if the bank does not rely on your statement. You don’t have a witness.

You may panic. Are you going to lose money without your fault?

Just calm down. You would get back the money. What if you don’t have any witness. The ATM camera must have the recording. The ATM should have excess money.

Legally, It is the responsibility of the bank to prove you wrong. The ATM is their premise.

But to make your case strong, you must note down all the details. The ATM number, bank, location and time. Following details may be required for filing a complaint.

1. Name of the ATM Bank
2. Location
3. Date of the transaction
4. Time of transaction
5. Transaction reference number
6. Response Code
7. Card No/Account Number

If you have a withdrawal slip, you would get all the details on it. Get it photocopied as ink disappears after a few days.

Note- Don’t use the same ATM for other transaction. As this would create confusion. There can be a fraud as well.

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2. Wait For 2 Days, Check Statement

The banks do know that ATMs sometimes do not dispense money. Hence, there is an inbuilt mechanism in the ATM. If the ATM realizes that an amount was not dispensed, it transmits a message to your account. Thus, banks promptly credit the amount.

This reversal of amount is done within few minutes. Sometimes it can take a few hours. But in 90% cases, you would get back the money the same day. It happened with me and my friends. We have got back the money the same day.

Although you should get back money in a few hours, still I would suggest you wait for two days.

Meanwhile, you must check the account statement or account balance. Some account holders do not get the credit SMS. So, you must check your account balance by giving a missed call or through the UPI App.

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3. Lodge A Complaint

If you don’t get back the money within 2 days. you must register the complaints. You have 3 ways to lodge the grievance.

a) Online

Every Big bank has its own website. Go to the website and search for the Contact/ Customer care / Feedback/ Helpline. There should be a page for lodging the complaint or giving the feedback. In the given form, you have to specify the type of problem and all of your bank account/debit card details. After submitting the grievance you would get a reference number. Save that number, It may be required. I have given the Screenshot of the SBI Complaints page.  Go through it. I hope that would be sufficient. If there is any

b) ToolFree Helpline

You can also call customer care for booking your complaints. You would find the number on the back of your debit card.

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c) Bank Branch

If you were using the ATM situated in the bank branch, it would be convenient to lodge a complaint at the branch. Go to the customer service desk of the bank to lodge your complaints. However, the bank employee would only take the complaints. They would not be in the position to give you the money.

The ATMs are managed by separate agencies. Only these agencies can open ATM and replenish the cash. At the time of replenishment, the agency people would see the cash in discard BIN. It is tallied with all the transactions and reported to the bank about the non-disbursal.

4. Wait for Another 7 days

After lodging the complaint, you should wait for another 7 days. The bank must return your money within this timeframe. There is a specific direction of the RBI in this regard. If the bank can’t reverse money within 7 working days of your complaint, it has to pay a penalty. More details about the penalty are given in the coming paragraphs.

Meanwhile, you should check the complaint status. You can do it through all the above methods. For an online query, you should go to the complaints page. You must have the reference number to check the status of the complaint.

If there is an undue delay, you can also contact the bank manager of your bank. This may help in most of the cases.

5. Contact to Banking Ombudsman

Normally banks dispose of complaints within 7 days to avoid the penalty. But if you do not get back the money within 30 days of the complaint, you can go to the Banking Ombudsman. This person is not associated with your bank, rather appointed by the RBI. The ombudsman would hear your complaint and reward the money along with the penalty.

6. Other Recourse

If you are not satisfied with the Ombudsman order, you can also go to the consumer courts. You must have enough evidence to produce in the court. Even you can also file a case in the normal court. There is no restriction. But, you must try the other redressal methods before going to court. As court cases take much more time and effort.

7. Penalty For Not Settling the Claim

The reserve bank of India has made clear rules on this regard. If ATM does not give you cash while the amount is debited from the account, the bank must recredit it earliest. The bank must reverse the amount within 7 days of the complaints. The bank has to pay a penalty of ₹100 for every extra day.

The RBI has clearly mentioned that bank must pay the penalty amount itself. The customer is not required to claim for it. If there is a delay, the bank should pay the penalty along with the reversed amount.

8. Important Points

• You must file your complaint within 30 days of the incident. After this period, the bank is not liable to pay the amount. There would not be any penalty as well.
• If a bank denies your claim, it has to prove that you have got the cash. ATM CCTV camera footage is used for this purpose. You can also ask for a copy of the footage.
• The same thing may also happen at a merchant location. Sometimes, while paying a merchant, you get the debit message but the merchant does not get the approval slip. In this scenario, you must follow the above procedure.
• You should always complain to your Bank, the card-issuing bank. The ATM may be owned by another bank, but it not your concern. Your own bank would collect the information from the ATM operator and another bank.

9. Why ATM Does not Dispense Cash

You have seen that sometimes dealing with this problem can be a lengthy process. So, you may ask why does this problem occur in the first place. Why this problem is bothering most to the common public. There are 3 reasons for this problem.

a) Internet Connection Problem

It is the most common reason for ATM failure. Because of the poor internet connection, the transaction gets timed out but the ATM switch gets triggered, sending a message to your phone.

b) Malfunctioning of ATM

Sometimes ATM can malfunction and ATM fails to dispense the cash. In such a scenario, you would always get back the cash when the ATM operator reconciles the payments at the end of the day.

c) Fraud

Skimming or fraud can be also one of the reasons for not dispensing the cash. In this case, you immediately do not lose the money. But the fraudsters would steal your PIN. In the skimming, a device is placed in the ATM to clone your debit card details and record your PIN entry. So, if you suspect any such device, immediately contact the bank and block your card.

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The ATMs often fail to dispense the cash. But often you get back the money within 24 hours. So, before taking a further step, you must check your bank balance. However, I  believe that you would get back the money as soon as possible.