IMGCAP(1)]
Some banks in India do not adhere to the 12-day deadline the Reserve Bank of India set for reversing faulty ATM transactions, reports the Economic Times, a newspaper based in India. The country's central bank earlier this year said financial institutions would pay penalties when neglecting to reimburse customers wrongfully debited because of faulty ATM transactions within that time period (CardLine Global, 17 Feb.). The bank has not confirmed the amount of those penalties, and financial institutions contacted by CardLine Global declined immediate comment. Another directive from the central bank requiring banks to offer free ATM cash withdrawals to their own customers who use debit cards had led to delayed reimbursements for wrongly debited accounts, the newspaper reports. "Connectivity" problems that involve the use of other banks' debit cards at ATMs is largely behind the rise in wrongly debited accounts, an official from a large public-sector bank in India tells CardLine Global. The official, who wants to remain anonymous, gave no other details. Prathima Rajan, an India-based analyst for United States-based research firm Celent, tells CardLine Global that in certain cases, banks have stretched the reimbursement period to 50 days. "Perhaps the ombudsman will speed up the process now," she adds, referring to the Reserve Bank office that deals with consumer complaints against financial institutions.
