Tejas Joshi's ATM Alert: How to Recover Your Money When the Machine Fails

Imagine using an ATM to withdraw cash, and the money is deducted from your bank account, but the ATM fails to deliver it. Tejas Joshi, a finance expert, shows how crucial it is to understand how to deal with it and how to receive a refund.

How to Get the Money Back

According to the Reserve Bank of India, if money is debited from his or her account because of ATM pull failure, the bank is required strictly to auto-debit that amount into his or her account in T+5 days. "T" here refers to the transaction date.

But if your account is already debited while the money is not dispensed, you can expect to get your money back within five days.

Compensation for Delayed Refund

However, if the bank fails to reverse the money within this amount of time, then they are liable to compensate you. According to the RBI rules, for every day after T+5 days, for which the bank has not reversed the money, they should pay Rs 100 as compensation on that particular day. Compensation will continue on until your money is returned to your account.

Key Takeaways for ATM Users

• If an ATM transaction fails but your account is debited, the bank must return the money within 5 days (T+5).
• The bank will have to pay Rs 100 as compensation for every delayed day after the T+5 clear date if it fails to do this.

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Now, in case of such an incident, make sure to report it to your bank immediately. Keep the RBI guidelines in mind and see that you get your money with compensation along with it in case there is any delay.