In a move that will provide much relief to credit/debit card customers, the Reserve

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Bank of India (RBI) has asked all banks to quickly reverse any wrong transactions at the automated teller machines (ATMs).

There are frequent complaints about failure of ATMs in cash disbursals, which generally results in debiting the amount from one's bank account. At present, banks take as long as 50 days to verify complaints and revert the amount, which according to RBI, will deter customers from using ATMs.

“The use of ATMs for cash withdrawal has been increasing in the country. However, of late, we have been receiving a number of complaints from bank customers regarding debiting of accounts even when ATMs have not disbursed the cash for various reasons. Banks take a considerable time in reimbursing the amounts involved in such failed transactions to the cardholders. In many cases, the time taken is as much as 50 days," the apex bank said in its notification to all banks.

According to Surekha Marandi, banking ombudsman for Maharashtra and Goa at Reserve Bank of India, the central bank came up with this regulation because the banks under VISA and Mastercard norms took up to 60 days to revert the cash.

“For salaried customers, banks cannot keep them away from their money for so long. They will starve to death if the amount is not reimbursed quickly," Marandi said. According to her, with the Payment and Settlements Act in place, RBI has brought it under its purview and acted upon it.

As per Section 18 of the Payment and Settlement Systems Act 2007, banks have to be quick in reimbursing the money. According to RBI, the delay in reverting the money results in customers being out of funds for a long time for no fault of theirs. "Moreover, this delay can discourage customers from using ATMs," the notification said.

In the past, RBI had intimated the banks to follow this, but as banks did not act on it, the central bank was forced to reinstate the notification. According to the notification, to start with, banks shall reimburse the amount wrongfully debited within a maximum period of 12 days from the date of receipt of the complaint.

Mohan Tanksale, general manager, transactions at Union Bank of India, however says the delay happens only when more than one bank is involved in the transaction.