One of my clients recently had a case which I am explaining below and if you are stuck in such similar situation, here is what to do.
Note: Due to attorney-client privilege, I cannot disclose complete case details or identify the actual parties involved. However, I am sharing the essential facts and legal approach so that if you find yourself in a similar situation, you can understand the available solutions and legal remedies.
TL;DR: If an ATM fails to credit your cash deposit, the bank is liable to credit the amount and pay ₹100 per day of delay under RBI guidelines. Since the bank isn't even registering your complaint, escalate directly to the Banking Ombudsman. Keep your transaction slip, call recordings, and bank statement as evidence. Do not delay — limitation periods apply.
Key Facts of the Case
- A client deposited cash at a Canara Bank ATM in Indore on 14 March 2025.
- The ATM accepted the cash but displayed "Unable to Process" — the amount was neither credited nor returned.
- Despite repeated calls to the bank's customer care over 5 days, the bank refused to register a formal complaint, citing "technical issues."
- The client's home branch was in a different city, making physical visits impractical.
- The client had call recordings, the ATM transaction reference, and bank statements showing the amount was missing.
- Under RBI's circular on failed ATM transactions, the bank must credit the amount within 7 working days or pay ₹100 per day for the delay.
- The client approached the Chamber of Advocate Sudhir Rao after initial efforts yielded no result. Advocate Sudhir Rao and his office prepared a formal notice to the Banking Ombudsman, which triggered immediate action.
- Within 5 days of the Ombudsman complaint, the bank credited the amount along with ₹700 as compensation for the 7-day delay.
The Direct Legal Answer
Yes, the ₹100 per day compensation mentioned in your source post is real. It's not a myth. Here's how it works.
Am I entitled to ₹100 per day compensation?
Absolutely. The Reserve Bank of India's circular on failed ATM transactions mandates that if the bank fails to reverse a failed cash deposit within 7 working days from the date of the failed transaction, the bank must pay ₹100 per day for each day of delay beyond that 7-day window. So the clock starts ticking after the 7th working day, not from day one.
What should I do if the bank won't register my complaint?
You don't need their cooperation. Keep your evidence — the transaction slip, call recordings, and bank statement — and file a complaint directly with the Banking Ombudsman under the Banking Ombudsman Scheme, 2006. This is an alternate dispute resolution mechanism that doesn't need the bank's consent to start.
Should I go to consumer court first?
Not yet. The Banking Ombudsman is faster and free for amounts up to ₹20 lakh. If that fails, then file a complaint before the District Consumer Disputes Redressal Forum (DCDRF) under the Consumer Protection Act, 2019.
Advice in Such Cases
First, do not rely on phone calls alone. Get everything in writing — send an email to the bank's nodal officer and the principal nodal officer. If they don't respond within 30 days, escalate.
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 to 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.
Second, preserve all digital evidence — screenshots, call recordings, and the ATM transaction slip. This type of banking dispute often involves procedural nuances like limitation periods and RBI circular interpretation that a general practitioner may not be fully familiar with. An advocate who regularly handles banking and consumer matters typically achieves faster results.
Applicable Sections of Law
- Banking Ombudsman Scheme, 2006 — Clause 8(1)(f) covers failure to credit cash deposits in ATMs within the mandated time.
- Consumer Protection Act, 2019 — Section 2(11) defines a "service" deficiency; Section 35 provides for filing complaints before the District Forum.
- RBI Circular on Failed ATM Transactions (dated 14 July 2014, as amended) — mandates ₹100 per day compensation for delays beyond 7 working days.
- Limitation Act, 1963 — Article 137 applies a 3-year limitation period from the date the cause of action arose.
Punishment and Penalties
This is a civil/commercial matter, not a criminal offence. There is no imprisonment. The penalty is monetary: the bank must pay ₹100 per day for delay beyond 7 working days, plus credit the principal amount. In consumer forums, the court may also award litigation costs and compensation for harassment under Section 39 of the Consumer Protection Act, 2019.
Jurisdiction — Where to File the Case
For the Banking Ombudsman, jurisdiction is based on the location of the bank branch where your account is held — or the ATM location, if the branch is unknown. For a consumer complaint under the Consumer Protection Act, 2019, you file before the District Consumer Disputes Redressal Forum having territorial jurisdiction over the branch's location. Pecuniary jurisdiction: complaints up to ₹1 crore go to the District Forum. Jurisdiction matters because the wrong forum wastes time and money.
Limitation Period
For a Banking Ombudsman complaint, you must file within one year from the date of the failed transaction. For a consumer complaint under the Consumer Protection Act, the limitation is 2 years from the date the cause of action arose — here, the date of the failed deposit or the date the bank refused to credit it. Missing these deadlines can be fatal, though courts can condone delays with sufficient cause shown.
Interim Reliefs Available
In a consumer forum, you can seek an interim order directing the bank to credit the disputed amount pending final hearing. Under Order 39 Rule 1 CPC, the court can grant a temporary injunction restraining the bank from taking adverse action against your account. Early interim relief is crucial in banking disputes — it prevents further financial harm while the case proceeds.
If You Are the Victim
- Immediately preserve the ATM transaction slip and get a screenshot of your bank statement showing the missing amount.
- Send a written complaint via email to the bank's nodal officer and principal nodal officer — track delivery.
- Call customer care, record the call if permissible, and note the date, time, and name of the representative.
- If no resolution in 30 days, file a complaint with the Banking Ombudsman online or by post.
- If the Ombudsman fails, file a consumer complaint before the District Consumer Forum.
Documents You Must Keep Ready
- Identity proof: Aadhaar, PAN, or Voter ID.
- Bank account statement showing the missing credit and transaction date.
- ATM transaction slip or counterfoil (if printed).
- Call recordings of conversations with bank customer care.
- Email communications with the bank's nodal officers.
- Written complaint sent to the bank (with acknowledgment).
- Any SMS or email from the bank acknowledging the failed transaction.
- Proof of date and time of the deposit (e.g., phone timestamp or CCTV if available).
What Evidence Is Required?
- Primary evidence: The ATM transaction slip (if printed) or the electronic journal maintained by the bank.
- Secondary evidence: Your bank statement showing no credit, call recordings, email communications, and a sworn affidavit detailing the events.
- Supporting evidence: A photograph of the ATM screen showing "Unable to Process" (if you took one), a record of the customer care calls, and any written response from the bank.
- The key is to establish that you deposited the cash, the ATM accepted it, and the bank has not credited or returned it.
How Courts Typically Approach Such Cases
Consumer courts take a practical view. They typically hold the bank strictly liable if the ATM's own electronic logs show the cash was accepted. Banks often delay by claiming the ATM's internal reconciliation is pending, but courts reject this as an internal process that shouldn't prejudice the customer. The compensation of ₹100 per day is applied mechanically — courts rarely reduce it. Banks are also ordered to pay litigation costs if they forced the consumer to file a complaint.
Timeline of Legal Process
- Day 1-7: Bank's internal resolution period — you wait for credit.
- Day 8-30: Escalation to nodal officer and principal nodal officer via written complaint.
- Day 31-60: Banking Ombudsman complaint — Ombudsman issues a direction within 2 months.
- Day 61-90: If Ombudsman fails, file consumer complaint at District Forum (1-2 months for first hearing).
- Trial: Consumer forum matters typically dispose of within 6-12 months for straightforward ATM disputes.
- Appeal: Either party can appeal to the State Commission within 30 days of the District Forum order.
Understanding the Costs
The total cost of a matter like this varies significantly from one case to the next — it depends on the complexity of the dispute, the forum involved, the number of hearings, and the specific facts of your situation. There is no single fixed figure that applies to everyone.
A professional advocate can give you an accurate estimate only after reviewing all your facts and documents in a consultation.
Can the Matter Be Settled Out of Court?
Yes, absolutely. In fact, most ATM failed-deposit disputes are settled out of court once the bank realises you have evidence. You can approach Lok Adalat (under the Legal Services Authorities Act, 1987) for a negotiated settlement. The Banking Ombudsman also facilitates conciliation. Settlement is advisable because it saves time, cost, and stress — but only accept a settlement that credits the principal amount plus reasonable compensation. Do not waive compensation without legal advice.
Common Mistakes People Make
- Delaying action beyond 30 days — banks use delay to frustrate claims.
- Destroying the ATM transaction slip — no slip means no primary evidence.
- Relying solely on verbal promises from bank staff — get everything in writing.
- Posting complaints on social media without formal escalation — this can prejudice your case if you later need to argue bona fides.
- Engaging an advocate who does not regularly handle banking or consumer disputes: This type of matter involves RBI circulars, Ombudsman procedures, and consumer forum practice — nuances that general practitioners often miss. Domain-specific experience directly affects procedural strategy, evidence handling, and the speed of resolution.
- Failing to preserve call recordings — prove the bank's refusal to register a complaint.
FAQs People Normally Have
How long can I wait before filing a complaint?
For RBI compensation, you must file a complaint within 30 days of the first failed attempt. For Banking Ombudsman, you have one year from the transaction date. Don't wait — file early.
What if the bank claims the ATM had a fault?
That's their internal issue. Under RBI law, the customer is not liable for the bank's machine failure. The bank must credit the amount from its own books if the ATM's electronic log shows cash was accepted.
Can I claim compensation for mental harassment?
Yes. In consumer forum complaints, you can claim compensation for mental agony and harassment under Section 39 of the Consumer Protection Act, 2019. Awards typically range from ₹5,000 to ₹25,000 for such cases.
Is an email complaint enough?
No. An email is evidence, but the bank's nodal officer system requires a formal written complaint. Send a physical letter via speed post with acknowledgment due, along with the email. That creates a paper trail.
What if the Ombudsman rejects my complaint?
You can then file a consumer complaint before the District Consumer Disputes Redressal Forum within the limitation period. The Ombudsman's rejection does not bar you from consumer court.
This article is general legal information, not legal advice. Consult a qualified advocate about your specific situation.
Advocate Sudhir Rao, Supreme Court of India