Customer gets Rs 15,000 relief after ATM debits Rs 10,000 without dispensing cash
A Kerala consumer commission ruled against Union Bank of India after an ATM failed to dispense cash despite debiting a customer's account. The bank was ordered to refund the money and pay compensation for failing to provide conclusive evidence, such as CCTV footage, to support its claim.
Why it matters
The ruling reinforces consumer rights in digital banking disputes and sets a precedent for the necessity of visual evidence in failed ATM transactions.
NEW DELHI: A Kerala district consumer commission, in an order dated July 27, held Union Bank of India liable for deficiency in service after an ATM debited Rs 10,000 from a customer's account without dispensing any cash. Holding that the bank failed to properly address the customer's complaints and could not prove that the cash had actually been withdrawn, the commission directed it to refund the debited amount and pay Rs 5,000 as compensation for mental agony and inconvenience.How did the failed ATM transaction turn into a consumer dispute?According to the commission's order, complainant P.K. Sathian visited a Union Bank ATM at Kallai Road in Kozhikode on July 28, 2022, to withdraw Rs 10,000 from his savings account. Although the amount was deducted from his account, the ATM did not dispense any cash.The complainant immediately informed the bank about the failed transaction.
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