The Reserve Bank of India has reduced the time banks have to resolve problems stemming from failed ATM transactions, according to a May 27 notice from the country’s central bank.
Starting July 1, India’s banks must solve issues regarding failed ATM transactions within seven working days, according to the notice. Indian banks were free to take their time to resolve such issues until 2009, when the central bank established a limit of 12 working days (
The central bank reduced this redressal period after repeated complaints from cardholders that 12 working days was too long for a reversal, especially in the case of large-ticket transactions, according to local media reports.
If a bank cannot resolve a customer’s complaint within seven working days, it must pay the customer 100 rupees (US$2.2 or 1.5 euros) per day until the complaint is resolved, according to the notice. However, customers would need to file complaints of failed ATM transactions within 30 days of them occurring to qualify for the compensation.
Additionally, if a failed transaction occurs at another bank’s ATM, the card issuer would be responsible for resolving the matter with the cardholder, according to the central bank.
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