No Cash Dispensed from ATM, Yet Money Debited from Account—Bank Forced to Pay Double Compensation..
We have all, at some point, harbored a fear whenever we insert our card into an ATM. A single question lingers in our minds: "What if the money gets stuck?" Exactly this scenario unfolded for a man in Nagpur. While no cash was dispensed from the machine, he certainly received a text message on his mobile phone confirming that the money had been deducted from his account. Typically, in such situations, people become distressed and eventually give up after making endless rounds of the bank. However, this customer refused to give in. He immediately pursued a legal course of action, and now, after a long-drawn legal battle spanning eight years, the bank was compelled not only to refund his entire amount but also to pay double that sum as compensation.
An Eight-Year Wait for ₹5,000
This entire incident took place in Nagpur, Maharashtra. In August 2018, the complainant attempted to withdraw ₹5,000 from an Axis Bank ATM to meet his immediate needs. The transaction appeared to process successfully, yet not a single banknote was dispensed from the cash dispenser. Conversely—and quite ironically—the customer received a notification on his phone confirming that ₹5,000 had been debited from his bank account. For any ordinary person, this would have come as nothing short of a shock. The complainant immediately contacted the bank and lodged a formal complaint; however, the bank management failed to treat the matter with the seriousness it deserved. The customer then sought recourse through the Banking Ombudsman mechanism, but even there, he failed to secure a fair hearing or any form of relief.
Bank's Negligence Exposed at the Consumer Commission
When he met with disappointment at both the bank level and the Ombudsman's office, the individual approached the District Consumer Disputes Redressal Commission in Nagpur. A bench comprising the Commission's President, Satish Sapre, and Member Milind Kedar conducted a thorough hearing of the entire case. Surprisingly—and tellingly—despite having been served with legal notices, no representative from Axis Bank appeared before the Commission to present their side of the argument. Consequently, the Commission was compelled to proceed with the hearing ex parte(in the absence of the opposing party). The forum clearly observed that the bank had been consistently ignoring t he repeated complaints lodged by its own customers.
CCTV Footage Not Even Reviewed
During the hearing, the Commission observed that the bank had displayed gross negligence in this case involving a failed ATM transaction. The bank failed to present any concrete evidence to substantiate that it had conducted a proper investigation into the matter. In fact, they did not even take the trouble to review the recordings from the surveillance cameras (CCTV) installed at the ATM for that specific day. The Consumer Forum termed this a severe deficiency in service. The Commission explicitly stated that whenever funds are debited from an account, but no cash is dispensed by the machine, it becomes the direct responsibility of the bank to investigate the matter with immediate effect and provide relief to its customer.
Compensation of ₹10,000 Awarded
The Forum delivered a significant verdict in favor of the customer in this case. The Commission issued strict directives to Axis Bank to immediately refund the ₹5,000 belonging to the complainant that had remained stuck. Furthermore, an order was issued to pay an additional compensation of ₹10,000 to the customer as recompense for the physical and mental harassment endured over a period of eight years.
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