What to Do When an ATM Does Not Dispense Cash, but the Current Account Is Debited?

Posted on Tuesday, November 26th, 2024 | By IndusInd Bank

The inconvenience of “account debited but cash not dispensed” is a situation no one wants to be in. ATM transactions are usually quick, secure, and hassle-free. However, sometimes things can go wrong, like when the ATM fails to release cash, but the amount is still deducted from your current account. This situation can be quite frustrating and stressful as it disturbs your day and creates unnecessary concerns about the safety of your funds. Fortunately, such issues are manageable, and banks follow clear regulations to resolve them. 

Let’s go through the steps you should take if this ever happens to you so that your hard-earned money is credited back to your account.

Step 1: Check Your Transaction Status

In several instances, ATM transactions get declined due to technical issues, but the money is usually credited back to your current account within a few minutes or hours. So, first check your mobile banking app or internet banking to confirm if the transaction has actually taken place. Sometimes, it may appear as a “pending” transaction, which will clear on its own. However, if the money has been debited, you will have to take the steps mentioned below.

Step 2: Save the Transaction Slip or Record the Details

If the ATM issues a transaction slip, keep it safe. If it doesn’t, note the date, exact time, and location of the failed transaction. You could use your transaction alert or bank statement as a reference. These details are crucial for reporting the incident accurately. 

Step 3: Contact Your Bank Right Away

Contact your bank’s customer care service immediately if the ATM fails to dispense cash, but your account was debited. This can typically be done through the bank’s toll-free helpline number or their mobile app. Share all the details of the failed transaction, such as the ATM location, the transaction time, and the exact amount deducted.

Step 4: Wait for Automatic Reversal as per RBI Guidelines

As per the guidelines of the Reserve Bank of India (RBI), banks must resolve ATM transaction disputes within a maximum of T+5 days from the date of the complaint. If the bank fails to return the amount within this time frame, they are liable to compensate you with a penalty of ₹100 per day for the delay. Hence, keep track of the timeline.

What to Do if You Used a Non-Bank ATM to Withdraw Cash?

If you withdraw from an ATM that doesn’t belong to your bank, the process for resolving issues is the same. However, the resolution might take a bit longer since both banks need to communicate. Make sure to still contact your own bank to handle the problem, not the bank that owns the ATM. They will look into the matter and coordinate to resolve the issue.

Also Read: Do’s and Don’ts of Getting a Current Account

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Key Takeaways

An account being debited but cash not received is undoubtedly a stressful situation. By verifying transactions, recording crucial details, contacting your bank immediately, and allowing time for automatic reversals, you can manage these incidents with less stress. Keep track of the communication for future reference.

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Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.