RBI Framework - Mandatory

Master Circular DPSS.PD.No.1424/02.10.002/2009-10 dated 17 July 2009 + Circular RBI/2010-11/532 dated 27 May 2011 + Harmonisation of TAT Circular 2019:

1. T+5 Rule: Bank must auto-reverse failed transaction within T+5 working days [now calendar days in latest circular]. T = day of transaction.
2. ₹100 per day penalty: If fails to reverse within T+5, compensation of ₹100 per day of delay beyond T+5, automatically credited without claim.
3. Issuing Bank Liable: Responsibility lies on card-issuing bank, irrespective of whether ATM belongs to same bank or other bank. Inter-bank dispute cannot affect customer.[acquirer]
4. Customer need not prove: Bank must prove dispensing via electronic journal, cash verification report, CCTV.

Every ATM writes an electronic journal, a machine log of each transaction. If cash is not dispensed, cash must remain in cash chest.

Evidentiary Battle - What Bank Must Produce

Mere showing transaction as "successful" in electronic system could not conclusively establish that cash had actually been dispensed.

Banks usually produce:

1. Electronic Journal Log [EJ Log] - shows response code
2. Cash Replenishment-cum-Cash Verification Report - at end of day, does ATM have excess cash equal to failed transaction?
3. CCTV footage - conclusive
4. Switch report from NPCI

If bank fails to produce, consumer wins.

Leading Case Laws - Excess Debit Mismatch

CASE 1: Jitender Singh v Punjab & Sind Bank & Ors - Delhi District Commission-VIII Central - Consumer Complaint DC/77/CC/153/2023 - Order Aug 27, 2026 - Rs 59,600 Payout

Facts: Jitender Singh, Punjab & Sind Bank account holder, ATM debited Rs 10,000, no cash dispensed.

Bank defence: Transaction marked successful in system, no excess cash found, therefore dispensed.

Commission held:

• Merely showing transaction as successful in electronic system could not conclusively establish cash actually dispensed.
• RBI framework: when account debited but cash not dispensed, transaction should be reversed within T+5 calendar days.
• Failure to reverse within RBI-prescribed T+5 days constitutes deficiency in service, with inter-bank disputes not affecting customer rights.
• RBI guidelines regarding compensation for delayed reversal intended not merely to ensure expeditious resolution but to compensate customer so bank's accountability be fixed against casual handling.

Award: Refund Rs 10,000 + Rs 100 per day delay [from day 6 till reversal, almost 400+ days = Rs 40,000+] + compensation for mental harassment + litigation cost = Total Rs 59,600. Widely reported by LiveLaw, Mathrubhumi, Rediff.

This is now leading precedent for penalty calculation.

CASE 2: Union Bank of India v Customer - Haryana State Commission - Rs 25,000 withdrawal, Rs 50,000 debit

Facts: Man withdrew Rs 25,000 but statement showed Rs 50,000 debit - double debit due to system error.

After being charged Rs 50,000 for ATM transactions despite receiving only Rs 25,000 in cash, Haryana man won 11-year legal battle against Union Bank of India.

State Commission upholding July 2018 District order: Bank directed to refund disputed Rs 25,000 + Rs 5,000 compensation and litigation costs. Bench S P Sood and Suresh Chander Kaushik. Bank could not produce EJ log showing two dispense operations, only one.

Principle: If cash is not dispensed in ATM counter representing any debit entry, cash must remain in cash chest of ATM system. Any variance must be in excess cash report.

CASE 3: Kozhikode District Commission - July 27, 2026 - Rs 15,000 - CCTV is Conclusive

Kozhikode consumer commission ordered Union Bank of India to pay Rs 15,000 to customer whose account debited Rs 10,000 at ATM he says dispensed no cash, after finding bank failed to produce CCTV footage to prove its claim that money was received.

Commission held CCTV footage is conclusive. Bank produced only switch report.

Filed Feb 2023, decided July 2026.

CASE 4: Udaipur District Commission - Sept 24, 2024 - Short Dispense Rs 9,000

Customer withdrew Rs 10,000, received Rs 1,000 short? Actually missing Rs 9,000.

Udaipur District Consumer Commission ordered bank to refund missing Rs 9,000 and pay Rs 7,000 more as compensation and legal costs - total Rs 16,000. Bench President Suman Gaur and Manish Parmar.

Bank shifted responsibility onto ATM agency, but no necessary action taken to credit additionally deducted amount.

Principle: Bank cannot shift liability to outsourced ATM vendor [like NCR, Diebold, CMS]. Liability under contract is with bank.

CASE 5: Consumer Complaint No. 07/2010 - B. Sushma v Manager - SB Account 64030371428 - Rs 15,000

Complaint under Sec 12 Consumer Protection Act 1986 for wrong debit entry Rs 15,000 dated 28.04.2009.

Court held: If cash not dispensed, must remain in cash chest. Any variance must be tallied daily. Bank failed to produce cash verification.

CASE 6: Axis Bank Cases - Excess Cash Confirmation Defence

Axis Bank vs Jagdish Prasad - Complaint 40/14
Complainant tried Rs 20,000 twice failed, but message shows Rs 10,000 debited. Bank produced excess cash confirmation report dated 27.09.2013 pertaining to transaction 9233 dated 05.04.2013, cash dispensed successfully as per branch ATM replenishment-cum-cash verification records and no excess cash amount.

Court accepted bank defence because excess cash report matched - no excess = money went out.

Contrast with Axis Bank Ltd vs Binoj Pankajkshan - 2018-12-15
Rs 9,000 dispensed, shortfall Rs 1,000. Bank admitted: It was due to cash jam occurred at presenter mouth during dispensing operation. This excess amount was found in diverter tray. Ordered to refund Rs 1,000.

CASE 7: State Bank of India v P.N. Subramanya - NCDRC 2018 - Landmark cited by all commissions

NCDRC held failure to auto-reverse within 5 days is deficiency. Bank must have system to auto-recognize failed transactions via reconciliation at NPCI switch.

How to File & Win - Practical Law

For Customer:

1. Complain within 30 days to bank's ATM ID + keep slip
2. If not reversed in T+5 days, you get ₹100/day - calculate from Day 6
3. File online with RBI Ombudsman under Integrated Ombudsman Scheme 2021 [deficiency in service] + Consumer Commission
4. Evidence you need: SMS debit alert, account statement, ATM ID, time. Bank must produce EJ log + cash tally + CCTV. If they don't, you win as per Jitender Singh doctrine.

For Bank - How to defend excess debit case:
Must produce:

• EJ Log with dispense status
• Cash balance report showing NO excess cash of disputed amount on that date
• CCTV footage [30-90 days retention - if not preserved after complaint, adverse inference]
• Switch data from NPCI
• Certificate under Sec 63 BSA [65B Evidence Act]

If bank marks transaction successful but cash verification shows excess Rs 10,000, it proves customer didn't get money.

Compensation now standard:
Refund of principal + Rs 100 per day beyond T+5 + Rs 10,000-20,000 harassment + Rs 5,000-10,000 litigation cost. Delhi case Rs 59,600 is highest because delay was ∼1.5 years.