The District Consumer Disputes Redressal Commission-VIII (Central), Delhi, comprising Divya Jyoti Jaipuriar (President) and Dr. Rashmi Bansal (Member), has held Punjab & Sind Bank liable for deficiency in service for failing to reverse ₹10,000 debited from a consumer's account in a failed ATM transaction where no cash was dispensed.

The Commission observed that marking the transaction “successful” was not enough to prove cash was dispensed, especially when the bank failed to produce supporting ATM records. It also held that the issuing bank could not shift responsibility to the other bank and had to ensure timely reversal as per RBI guidelines.

Brief Facts:

The Complainant, Jitender Singh, a savings bank account holder with Punjab & Sindh Bank, was issued an ATM/Debit Card by the bank.

On 5 December 2022 at around 2:16 PM, he attempted to withdraw ₹10,000 from an Axis Bank ATM. Although ₹10,000 was debited from his account and the transaction was shown as successful, the ATM allegedly did not dispense any cash. The complainant stated that immediately afterwards, his colleague used the same ATM and successfully withdrew ₹20,000.

The complainant approached Punjab & Sindh Bank regarding the disputed transaction. On 19 December 2022, he submitted a written complaint seeking re-credit of the ₹10,000. The bank registered the complaint and forwarded it to Axis Bank, which rejected it on the ground that the transaction was shown as successful.

The complainant again approached the bank on 5 January 2023 and requested a further investigation. He paid ₹590 towards further investigation, and the matter was subsequently referred to the ATM Cell/Arbitration process. However, despite the passage of the stipulated period, the ₹10,000 was allegedly not re-credited to his account. He also approached the Principal Nodal Officer and later issued a legal notice dated 14 July 2023 to the concerned banks.

As the amount remained unpaid, the complainant filed a consumer complaint before the District Consumer Disputes Redressal Commission-VIII (Central), Delhi, alleging deficiency in banking service and seeking refund of ₹10,000 along with compensation and other reliefs.

Contentions of the Bank:

Punjab & Sindh Bank contested the complaint and maintained that the ATM transaction had been recorded as successful and that it had taken steps to investigate the complainant's grievance. It relied on the fact that the complaint had been forwarded to Axis Bank and subsequently rejected as a successful transaction.

Observation and Decision:

The Commission held that the complainant had proved that ₹10,000 was debited from his account without cash being dispensed. The bank's mere reliance on the transaction being marked “successful” was not sufficient, particularly as it failed to produce ATM records, CCTV footage or other technical evidence proving cash dispensation.

The Commission noted that under RBI guidelines, a failed ATM transaction must be reversed within T+5 days, with ₹100 per day compensation for delay. The bank could not shift responsibility to the other bank involved in the ATM transaction.

Holding the bank guilty of deficiency in service, the Commission directed it to pay the complainant ₹10,000 refund, ₹29,600 delayed compensation, ₹10,000 for mental agony and harassment, ₹10,000 litigation costs, totalling ₹59,600.

Case Title: Jitender Singh v. Punjab & Sindh Bank & Ors.

Case No.: Consumer Complaint No.: DC/77/CC/153/2023

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