If you are stuck in such a situation, here is what to do.

Mr. Alok Verma recently faced a distressing situation at a National United Bank branch in Jaipur. He went to the Cash Deposit Machine (CDM) to deposit a sum of ₹15,000 into his account. During the process, the machine rejected a few of the currency notes. Following the on-screen instructions, he re-inserted the rejected notes. However, to his shock, the machine only registered the initial amount and failed to account for the notes he inserted the second time. He proceeded, hoping it was a display error, but the final confirmation message and the subsequent SMS alert confirmed that only ₹10,000 had been credited to his account, leaving ₹5,000 unaccounted for.

Mr. Verma immediately entered the bank and filed a formal complaint, detailing the incident. After a few days of follow-up, the bank officials informed him that their internal investigation, which included checking the ATM’s electronic journal, the physical cash reconciliation, and even the CCTV footage, yielded no excess cash. They concluded that they could not credit the missing ₹5,000 to his account. This left Mr. Verma in a state of confusion and despair, wondering if his hard-earned money was lost forever due to a technical glitch.

Advice in such cases

If you find yourself in a similar predicament, it is crucial to act systematically and not panic. The law and banking regulations have established procedures to handle such discrepancies.

• Preserve all evidence immediately. This includes the transaction receipt, any SMS or email alerts, and a screenshot of your account balance.
• Do not leave the ATM vestibule without the transaction slip. If the slip is not printed, make a note of the ATM ID, location, date, and time.
• File a formal, written complaint with the bank at the earliest opportunity. Ensure you obtain a stamped and signed acknowledgment of your complaint.
• Keep a detailed record of all your communications with the bank, including the names of the officials you speak with and the dates of conversation.
• Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think.

Applicable Sections of Law

Several laws and regulations protect a consumer in such cases:

• Consumer Protection Act, 2019: Banking is defined as a “service” under this act. A failure to credit the correct amount deposited by a customer amounts to a “deficiency in service.” The aggrieved customer can file a complaint before the appropriate Consumer Disputes Redressal Commission to seek redressal, which can include the recovery of the lost amount along with compensation for mental agony and litigation costs.
• Reserve Bank of India (RBI) Guidelines: The RBI has issued specific circulars regarding the resolution of failed ATM/CDM transactions. These guidelines mandate a strict timeline (usually T+5 days, where T is the day of the transaction) for banks to resolve such issues. If a bank fails to resolve the complaint within this period, it may be liable to pay a penalty to the customer for each day of delay.
• Bharatiya Nyaya Sanhita, 2023 (BNS): While primarily a civil matter, if there is evidence suggesting that bank employees have dishonestly misappropriated the funds, provisions such as Section 316 of the BNS (related to criminal breach of trust) could be invoked. However, this requires a high burden of proof and is pursued only when there is clear evidence of a criminal act.

If you are the complainant

As the person who has lost the money, you must take proactive steps to build your case.

• Lodge a Formal Complaint: Your first step is a written complaint to the Branch Manager of the bank where the incident occurred. Clearly state the facts, the amount in dispute, and attach copies of your evidence.
• Escalate within the Bank: If the branch does not provide a satisfactory resolution within 30 days, escalate the matter to the bank’s Nodal Officer. The contact details for these officers are available on the bank’s website.
• Approach the Banking Ombudsman: If you are still not satisfied with the bank’s response or if they do not respond within a month, you can file a complaint with the RBI’s Banking Ombudsman. This is a free-of-cost and effective grievance redressal mechanism.
• Legal Notice: Through an advocate, you can send a strong legal notice to the bank. This formal communication often signals your intent to pursue legal remedies and can pressure the bank’s legal department to resolve the issue promptly.
• Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think.

If you are the victim

Understanding your position and rights as a victim of a deficient service is key.

• The Onus is on the Bank: In many such cases, consumer courts have held that the burden of proof lies with the bank to prove that their machines were functioning flawlessly and that there was no excess cash found during reconciliation.
• Right to Information: You have the right to ask the bank for evidence of their investigation, such as a copy of the ATM’s electronic journal for the said transaction and the cash reconciliation report. You can also request to view the CCTV footage in the presence of a bank official.
• Do Not Accept Verbal Denials: Always insist on a written response from the bank explaining the reasons for denying your claim. This document is crucial for any future legal action.
• Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think.

How the police behave in such cases

Approaching the police is an option, but its effectiveness can vary. Typically, the police view such ATM/CDM disputes as civil in nature, arising from a contractual relationship between the customer and the bank. They may register a formal complaint but are likely to advise you to approach the bank’s internal grievance mechanism, the Banking Ombudsman, or the Consumer Court. An FIR under criminal law (like the BNS) is generally not registered unless there is clear prima facie evidence of a crime like theft or misappropriation by a specific individual, which is rare in cases of machine error.

FAQs people normally have

Can the bank get away by simply saying the money wasn’t found?

No. A simple denial is not enough. They must substantiate their claim with evidence from their investigation. If you challenge their finding, they must be able to prove their position before a forum like the Banking Ombudsman or a Consumer Court.

What is the importance of the ATM reconciliation report?

This is a critical piece of evidence. It’s a physical audit where bank staff tally the cash in the machine against the electronic transaction log. If a customer’s deposit was not credited but the cash was retained by the machine, this audit should show an “excess cash” amount, which would corroborate the customer’s claim.

Is it possible that the machine made an error and the bank is right about not finding the cash?

While modern machines are highly advanced, technical and mechanical errors are not impossible. However, in most scenarios, a machine that retains cash without crediting an account will lead to a surplus during the physical cash count. A claim by the bank that no surplus was found requires careful scrutiny.

What evidence is required?

To build a strong case, you should gather the following:

• The transaction slip issued by the CDM/ATM.
• Your bank account statement showing the partial or non-credit of the deposited amount.
• A copy of the formal complaint you filed with the bank, with their acknowledgment seal.
• All subsequent written communication, including emails, between you and the bank.
• A log of telephonic conversations with dates, times, and the names of the bank officials you spoke to.

How long will the investigation take?

The timeline for resolution can vary based on the channel you use:

• Bank’s Internal Process: As per RBI norms, the bank should ideally resolve the issue within 5 to 7 working days.
• Banking Ombudsman: This process can take anywhere from 4 to 12 weeks, depending on the complexity and the bank’s cooperation.
• Consumer Court: Filing a case in the Consumer Court is a formal legal proceeding. It can take several months to a year or more for a final decision, depending on the case’s merits and the court’s schedule.

Advocate Sudhir Rao, Supreme Court of India