ATM transactions have become a part of everyday life.
But sometimes, things don’t go as planned.
You may see money deducted from your account, receive an SMS alert, but no cash comes out of the ATM.
In such situations, many people panic, fearing they have lost their money.
The good news is that there is no need to worry.
The Reserve Bank of India (RBI) has put strict rules in place to protect customers and ensure refunds in case of failed ATM transactions.
RBI Rules on Failed ATM Transactions
As per RBI guidelines, if an ATM transaction fails and the amount is deducted from your account, the bank must refund the money within five working days.
Here, T means the day the transaction took place.
The refund should be credited automatically to your account, and in most cases, you do not need to visit the bank.
What If the Bank Delays the Refund?
If the bank fails to return the money within the five-day limit, it will have to pay a penalty of ₹100 per day, starting from the sixth day.
This penalty continues until the refund is credited.
However, to claim this compensation, you must register a complaint within 30 days of the transaction.
These rules apply to all banks, as directed by the RBI.
What to Do When Cash Is Not Dispensed
If you receive an SMS or see a deduction but don’t get the cash, follow these steps calmly.
Keep the ATM receipt safe, as it contains the transaction ID and machine details.
If you do not have the slip, check your bank statement for transaction information.
Register a complaint by visiting the nearest bank branch or calling customer care and note down the complaint number.
Most banks also allow you to file complaints through their mobile apps or official websites.
Important Things to Keep in Mind
Make sure your mobile number is updated with the bank.
Ensure your mobile network is active so transaction alerts can be received.
Final Takeaway
Failed ATM transactions can be stressful, but RBI rules strongly protect customers.
As long as you report the issue on time, your money—and even compensation in case of delay—is guaranteed. Knowing these rules can save you both worry and time.
