Banks to pay penalty for ATM errors

ATM at the secretary of state in Portage, MI

Image via Wikipedia

Mr. R. Karthikeyan has forwarded me an important news from the Economic Times. Thank you very much Mr. Karthikeyan.

BANKS will now have to pay accountholders a compensation of Rs 100 per day for every day of delay in reversing a failed ATM transaction.
The Reserve Bank of India (RBI) has imposed stringent penalties on banks who fail to reverse a transaction where cash is not dispensed by the ATM but the customer’s account gets debited within 12 days.
In a circular issued on Friday, RBI has said banks must re-credit such customers’ accounts within 12 working days from the date of receipt of the complaint.
The circular is in response to complaints from customers who had to put up with delays in getting back money erroneously debited during failed ATM transactions. Besides imposing the stiff penalty, the central bank also made it clear that this amount needs to be credited to the customer’s account automatically on the day of the re-credit without the customer having to make a claim.
In case the delay is because of a third-party bank ATM through which the customer has transacted, the card-issuing bank must still pay the penalty to the customer. However, it will recover this amount from the bank that owns the ATM.
Similarly, if a non-bank network operator is the reason behind the delay, the bank will make the payment and recover the penalty from the operator.
Furthermore, the RBI has instructed banks to extend the scope of concurrent audit to cover cases of such delays. Banks are now also required to place a quarterly review of ATM transactions to its board of directors, indicating the quantum of penalties paid, reasons for the same, and the remedial action taken to prevent the recurrence of such cases. A copy will have to be forwarded to the central bank.
This apart, the Reserve Bank made a critical note of different banks setting different cutoff limits for permitting cash withdrawals from/for other bank customers.

Reblog this post [with Zemanta]

0 comments:

Post a Comment

All comments are moderated. Please post no spam

Disclaimer & Privacy Policies

(c) Mrs. Ruby Christy. This site and contents are owned by Mrs. Ruby Christy;
Use of this website and/or services offered by us indicates your acceptance of our Disclaimer& Privacy Policies.

Information and opinions provided on this website (www.investchips.com) has been independently obtained from sources believed to be reliable. However, such information may include inaccuracies, errors or omissions. Investchips.com and its affiliates, information providers or content providers and R.John Christy and his Family shall have no liability to you or third parties for the accuracy, completeness, timeliness or correct sequencing of information available on this website or feeds, or for any decision made or action taken by you in reliance upon such information, or for the delay or interruption of such information. Investchips.com,its affiliates, information providers ,content providers and R. John Christy and his Family shall have no liability for investment decisions or other actions taken or made by you based on the information provided on this website. Any action you choose to take in the markets is totally your own responsibility. Investchips.com and R. John Christy and his Family will not be liable for any, direct or indirect, consequential or incidental damages or loss arising out of the use of this information. This information is neither an offer to sell nor solicitation to buy any of the securities mentioned herein. Opinions expressed by R. John Christy are his own and not of his past, present and future employers.
The DoubleClick DART cookie is used by Google in the ads served on this websites displaying AdSense for content ads. When users visit this website and either view or click on an ad, a cookie may be dropped on that end user's browser.
  • Google, as a third party vendor, uses cookies to serve ads on this site.
  • Google's use of the DART cookie enables it to serve ads to your users based on their visit to this site and other sites on the Internet.
  • Users may opt out of the use of the DART cookie by visiting the Google ad and content network privacy policy.
  • www.investchips.com never collects any personal information of visitors.