In a directive, the regulator, Reserve Bank of India has asked banks to reverse the wrongly debited amounts, during ATM transactions from the customer bank accounts within 12 working days.

The step has been taken considering the long time taken in reimbursing the wrong debits, particularly when customer uses card at ATM of bank another than the issuing banks.

The circular issued by the regulatory authority stated, "...we have been receiving a number of complaints from bank customers, regarding debit of accounts even though the ATMs have not disbursed cash for various reasons. More importantly, banks take considerable time in reimbursing the amounts involved in such failed transactions to card holders. In many cases, the time taken is as much as 50 days.'"

A senior banking ombudsman official stated, "Sticking to the 12-day deadline become difficult because there are two banks involved here. Reimbursement may take up to three weeks."

"If the amount does not get automatically recredited; the customer must first log a complaint," he added.

Following the RBI notification, to avail customers with inter-bank ATM services at extra cost in April, several ATM users have reported ATM faulty transactions, which include failed transactions, account debits against no cash withdrawal and void transactions. The failed transactions are due to system incompatibility, where the software fails to process card of another banks. In problem of void transactions, the user request is not completed and ATM does not dispense cash. It is found that void transactions are associated with account debits. The problem is further elaborated with delays in reversal of wrong debits in the accounts of respective customers.

Sanjeev Talwar, banking advisor, National Consumer Helpline, confirmed, ‘the problems were intense during April when ATMs were freed up. While senior bankers in Mumbai and Delhi say they aren't as severe anymore, they are yet not eliminated.'

"When a card is physically present in the ATM, the churn of printing roll is generated, and when there is any transaction, it hits a switch centre and reconcilation of the transaction takes place. If these two proofs are produced, it shows the transaction actually took place,'' said the ombudsman official.

Elaborating on the same, the official said, "We rely on the cash reconcilation statement. Every day or two, the cash which has been put inside the ATM is tallied with what has been actually dispensed. If cash doesn't come out, surplus money would be found in the statement. We take a decision (in a dispute) based on these three things."

The circular also stated that customers who have to wait more than 12 days for reversal of wrong debits, must approach RBI customer care department for the same.