In a customer-friendly move, the Reserve Bank of India has asked the banks to compensate the account holders for any delay in reversal of failed ATM transactions that extend beyond a period of 12 days.

The regulator has stated a compensation amount of Rs. 100 to be paid on per day basis, if the delay in reversal of amount exceeds 12 days.

In a notification, the regulator stated, "It is mandatory for the banks to reimburse the customers the amount wrongfully debited on account of failed ATM transactions within a maximum period of 12 working days."

The regulator has also made it obligatory for the banks to re-credit customer's account automatically for any failed transactions without the customers making a claim for same.

The regulator has also directed the banks to extend the audit scope to cover any case in delay in remitting the money.
In recent past, the regulator has received multiple complaints against banks violating its instructions. Different banks have placed different time limits for cash withdrawals for other bank customers.

The notification said, “If the banks fail to do so in the stipulated period, they would have to pay a fine of Rs100 per day from the 13th day onwards, said the notification. The penalty amount will also be credited on the same day when the bank pays back the debited amount for the failed ATM transaction to the customer.”

The notice also stated the acquirer bank is liable to pay claim compensation to the issuer banker if the delay is due to the former.