In the realm of digital transactions, while cash might seem outdated, ATMs remain an essential resource for those moments when physical money is required. Yet, despite their convenience, ATMs can sometimes create hassles. There are instances where, even after entering all your transaction details correctly, the cash doesn’t come out, but your account is debited. Should this unfortunate scenario happen to you, worry not—there are steps you can take to rectify the situation and reclaim your deducted amount within a reasonable timeframe.


The Reserve Bank of India (RBI) has laid down specific guidelines for situations where a technical glitch in an ATM causes the failure of a cash withdrawal despite correct transaction details. This glitch could lead to cash being trapped within the machine, leaving the customer without the money but debited by the bank. To ensure customers aren’t at a loss, the RBI mandates that banks have a period of 5 days, along with the day of the transaction, to rectify this issue. Failure to do so will result in the bank paying a penalty of Rs 100 per day to the affected customer until the matter is resolved.

So, what should you do if you encounter this situation? As per RBI regulations, the first step is to visit the nearest branch of your bank and report the incident. Alternatively, you can inform the bank through their customer care service. Your complaint will then be logged, and the bank will conduct an investigation into the matter. Should your complaint be substantiated, the money will typically be refunded to your account within 5 to 6 days. It’s essential during this period to keep your ATM slip and the transaction message received on your mobile safe as evidence of the failed ATM transaction.


If, despite your efforts and reporting to the bank, the money isn’t refunded within 30 days, you have the right to escalate the matter. You can raise a complaint with the senior officer of the Grievance Redressal Department of the bank to ensure the issue is addressed effectively.

This process, set by the RBI, aims to protect consumers in cases where ATMs malfunction and prevent them from bearing the brunt of technical errors during their transactions.