What changed
RBI changed the maximum reimbursement period for failed ATM transactions from 12 days to 12 working days, and introduced mandatory compensation of Rs. 100 per day for delays beyond this period, payable automatically. Banks must now cover failed ATM transaction delays under concurrent audit and submit quarterly board-reviewed reports to RBI.
What it means for you
Banks face stricter timelines and financial penalties for delayed reimbursements, increasing operational pressure to resolve ATM failures quickly. The Rs. 100 per day compensation can add up, especially for high-volume banks. Issuer banks can pass costs to acquirer banks or network operators if delays are their fault, but must ensure robust internal processes to avoid penalties.
What you must do
- Update internal systems to reimburse failed ATM transaction amounts within 12 working days of complaint receipt.
- Program automatic compensation of Rs. 100 per day for delays, credited on the same day as reimbursement.
- Extend concurrent audit scope to include failed ATM transaction delay cases.
- Prepare quarterly board reports on ATM transactions, including penalty amounts, reasons, and corrective actions, and forward to RBI.
- Place a copy of this circular before the board and acknowledge receipt to RBI.
Who it affects
All Scheduled Commercial Banks including RRBs, Urban Co-operative Banks, State Co-operative Banks, District Central Co-operative Banks, ATM network providers
What is the new timeline for reimbursing failed ATM transactions?
Banks must reimburse the wrongfully debited amount within 12 working days from the date of receiving the customer complaint.
What happens if a bank delays reimbursement beyond 12 working days?
The bank must pay compensation of Rs. 100 per day to the customer automatically, without any claim, on the same day the credit is given.
Can the issuer bank recover compensation paid to the customer?
Yes, if the delay is due to the acquirer bank or ATM network operator, the issuer bank can claim the compensation from them.