ATM didn't dispense cash but debited account (2025–26)

A textile trader in Surat inserted her HDFC debit card at an ICICI Bank ATM on 14 January 2026, requested ₹10,000, watched the screen freeze after “transaction processing”, received no cash, yet SMS debited ₹10,000 from her account within 90 seconds—the ATM receipt printed “Transaction could not be completed” while her balance showed the deduction.

Citizen Crisis Response Network
If cash not dispensed but account debited → photograph ATM screen + receipt within 60 seconds → lodge bank complaint within 24 hours → demand auto-credit within T+5 → escalate to RBI Ombudsman if no reversal → consider a cheating FIR if the bank ignores you despite clear evidence.

File a written complaint with your bank within 24 hours, citing the failed ATM transaction time, location, reference number, and attaching ATM slip and SMS screenshot. Under the RBI circular on Harmonisation of Turn Around Time (TAT) and customer compensation for failed transactions (DPSS.CO.PD No.629/02.01.014/2019-20 dated 20 September 2019), banks must auto-reverse a failed ATM withdrawal within T+5 calendar days of the transaction, and if they miss that deadline they must pay ₹100 per day of delay as compensation. If no credit appears, escalate to your bank's nodal officer, then file an online complaint with the RBI Ombudsman under the Reserve Bank – Integrated Ombudsman Scheme, 2021. If the bank rejects your claim with demonstrably false “transaction successful” evidence and ignores you, you may also lodge a cheating FIR. Preserve all digital evidence—ATM CCTV, transaction logs, SMS—and demand written confirmation of investigation at every stage.

• What the law says: RBI auto-reversal SLA and liability
• Step 1: Secure evidence at the ATM within 60 seconds
• Step 2: Complain to your bank within 24 hours
• Step 3: Monitor auto-credit timeline (T+5 calendar days)
• Step 4: Escalate to the RBI Ombudsman
• Step 5: Lodge a cheating FIR if the bank ignores you
• Sample bank complaint template (email + registered post)
• Sample RBI Ombudsman online complaint text
• Case-law and precedent: When delay becomes deficiency
• Frequently asked questions
• Myth vs reality: Six common misconceptions
• Internal links and tools

The RBI circular on Harmonisation of Turn Around Time (TAT) and customer compensation for failed transactions using authorised Payment Systems (DPSS.CO.PD No.629/02.01.014/2019-20 dated 20 September 2019, effective 15 October 2019) mandates that where an ATM transaction fails—the customer's account is debited but cash is not dispensed—the amount must be auto-reversed within T+5 calendar days of the transaction. If the bank misses this deadline, it must pay the customer ₹100 per day of delay beyond T+5 as compensation, credited automatically without the customer having to ask. This timeline applies irrespective of whether the ATM belongs to your own bank (on-us) or another bank (off-us).

The Payment and Settlement Systems Act, 2007 gives the RBI the power to regulate and supervise payment systems and to issue binding directions and penalties for non-compliance, which is the statutory basis for the TAT circular. Where a customer's account is debited through an unauthorised electronic transaction (a different situation from a failed-but-authorised ATM withdrawal), the RBI Master Direction on Customer Protection – Limiting Liability of Customers in Unauthorised Electronic Banking Transactions, 2017 caps the customer's liability and is the relevant instrument.

If the bank fails to reverse a failed ATM debit despite clear evidence and acts dishonestly, you may additionally consider a criminal complaint for cheating under the Bharatiya Nyaya Sanhita, 2023 (BNS) – Section 318 (the cheating provision, which replaced IPC Sections 415, 417, 418 and 420). Cheating by dishonestly inducing delivery of property is punishable under Section 318(4) with imprisonment up to seven years and fine. Police can register an FIR for a cognizable offence under the Bharatiya Nagarik Suraksha Sanhita, 2023 (BNSS) – Section 173 without a magistrate's order.

For the consumer-protection overlay, the Consumer Protection Act, 2019 defines “deficiency” in Section 2(11) as any fault, imperfection, shortcoming or inadequacy in the quality, nature or manner of performance of a service; a failed ATM transaction squarely fits. The District Consumer Commission can entertain complaints up to a pecuniary value of ₹1 crore under Section 34, though the RBI Ombudsman route is usually faster and cost-free.

Warning — The T+5 auto-reversal clock starts from the transaction date, not from the date you complain. Delays in lodging your complaint shrink your escalation window.

The moment you realize no cash dispensed but SMS debited, do not leave the ATM booth. Take the following actions while still on-site:

1. Photograph or video-record the ATM screen showing the error message (“Transaction could not be completed,” “Please contact your bank,” or blank screen). 2. Collect the printed slip if the machine ejects one; if not, note visibly on your phone the time, date, ATM ID (usually printed on the kiosk panel), and transaction reference number from your SMS. 3. Screenshot the debit SMS immediately—timestamp is critical evidence. 4. Note the ATM location precisely: bank name, branch address, landmark, and ATM ID (an alphanumeric code displayed on the machine fascia or printed on receipts). 5. Check for CCTV signage: most ATMs display “CCTV surveillance” stickers; photograph the sticker and note the camera direction. ATMs are under CCTV surveillance, and you have the right to request the footage via written application under the bank's internal complaint mechanism; ask the bank in writing to preserve it before it is over-written. 6. If possible, ask a companion or passer-by to act as witness and note their name and mobile number.

Do not attempt another transaction on the same card at the same ATM; cascading failures may trigger multiple debits. If you need cash urgently, use a different ATM of your own bank or withdraw via UPI/bank teller.

Most citizens miss this — They walk away assuming the ATM network will auto-correct. Without on-site evidence captured within minutes, banks often claim “successful cash dispense” citing backend logs, leaving you with the burden of proof.

File a written complaint to your card-issuing bank (not the ATM owner bank) via both email and registered post within 24 hours of the incident. Address it to:

• The Branch Manager of your home branch (email available on bank website > branch locator).
• The bank's centralized customer-care email (e.g., [email protected], [email protected]).
• CC the bank's nodal officer / grievance redressal officer email (listed on the bank's website under “Grievance Redressal,” as mandated by RBI).

Your complaint must include:

• Your full name, account number, registered mobile, email.
• Card number (last four digits only), transaction date-time, ATM location and ID.
• Transaction reference number (from SMS or ATM slip).
• Amount debited (₹ figure).
• Statement: “Cash not dispensed; account debited. Please auto-reverse within T+5 as required by RBI's TAT circular dated 20 September 2019.”
• Attachments: ATM slip scan, SMS screenshot, ATM screen photo.
• Relief sought: “Immediate re-credit of ₹[amount], plus ₹100/day compensation for any delay beyond T+5 as per the RBI TAT circular, plus written confirmation of credit.”

Log the complaint reference number. Most banks auto-generate a ticket ID; preserve the email acknowledgment.

Simultaneously, call the bank's 24×7 helpline (number on reverse of debit card) and verbally lodge the complaint; note the complaint reference number, date-time, and name of the customer-care executive. This creates a dual record.

Do this immediately — Send the registered-post copy via Speed Post with proof-of-delivery; courier services lack the same evidentiary weight. The dispatch receipt becomes your evidence of timely complaint filing.

Under the RBI TAT circular, your bank must auto-credit the disputed amount within T+5 calendar days of the transaction date, regardless of whether internal reconciliation with the ATM owner bank (if off-us) is complete. If the credit is delayed beyond T+5, the bank owes you ₹100 per day of delay as compensation.

Day-by-day checklist:

• T+0 (transaction day): Evidence secured, complaint filed.
• T+1: Check account balance; if credit not yet posted, call helpline for status update.
• T+2 to T+4: Monitor SMS and email from bank; many banks proactively confirm “under investigation.”
• T+5: If credit posted, verify amount matches debit. If not posted, immediately escalate to the nodal officer via email, stating “Non-compliance with the RBI T+5 auto-reversal SLA; ₹100/day compensation now accruing; will escalate to the RBI Ombudsman.”
• After T+5 with no credit: File an RBI Ombudsman complaint (explained in Step 4) once 30 days have elapsed since your complaint, or earlier if the bank rejects it in writing.

If the amount is credited but without any explanation or confirmation, demand a written closure note confirming the transaction failure and re-credit. This prevents future disputes if the bank later attempts to re-debit citing reconciliation errors.

The National Payments Corporation of India (NPCI) operates the dispute-resolution framework for inter-bank ATM transactions (see https://www.npci.org.in). For off-us transactions the issuing bank (your bank) and acquiring bank (the ATM owner) reconcile through this backend mechanism, but your right to a T+5 credit from your own bank does not depend on that reconciliation—your bank cannot hide behind “awaiting response from the other bank.”

Citizen tip — Set a calendar reminder for T+5 morning; do not assume the bank's system will auto-alert you. Proactive follow-up speeds resolution.

If there is no credit after the bank has had 30 days, or if the bank rejects your complaint citing “transaction successful” without evidence, escalate to the Reserve Bank of India Ombudsman under the Reserve Bank – Integrated Ombudsman Scheme, 2021 (RB-IOS 2021), which from 12 November 2021 replaced the earlier Banking Ombudsman Scheme, 2006 and consolidated the RBI's ombudsman schemes into a single “One Nation, One Ombudsman” framework.

Eligibility conditions:

• You filed a written complaint with the bank.
• The bank rejected the complaint, or did not reply within 30 days, or you are dissatisfied with the bank's response.
• The complaint relates to a deficiency in service (a failed ATM transaction qualifies).
• The complaint is filed within one year from the date the bank communicated its rejection, or from when the 30 days expired with no reply.

How to file (online):

1. Visit the RBI Complaint Management System at https://cms.rbi.org.in. 2. Register / log in (email and mobile OTP required). 3. Select “File a Complaint” > choose your bank. 4. Choose the relevant category for ATM / debit-card / deposit-account complaints. 5. Upload scanned copies: bank complaint letter, the bank's rejection or no-reply evidence, ATM slip, SMS screenshot, and the account statement excerpt showing the debit. 6. Briefly narrate the facts: date, ATM location, amount, the bank complaint reference, and that the bank failed to credit within the RBI-mandated T+5 SLA. Request a direction to credit the amount plus the ₹100/day delay compensation and additional compensation for deficiency in service. 7. Submit; note the CMS complaint reference number.

Under RB-IOS 2021, the Ombudsman can direct the regulated entity to pay compensation for the actual loss suffered (up to ₹20 lakh) plus up to ₹1 lakh for the complainant's time, expenses, and harassment/mental anguish. The Ombudsman calls for the bank's response, may hold a hearing, and passes an award; if you reject the award, you remain free to pursue other legal remedies.

Trust signal — RBI Ombudsman awards are binding on the regulated entity, and the RBI can take regulatory action against a bank that fails to comply, giving the process real teeth.

When a bank dishonestly delays or denies reversal despite clear evidence, you have the option to invoke criminal law for cheating under the Bharatiya Nyaya Sanhita, 2023 (BNS) – Section 318.

Legal foundation:

• BNS Section 318 is the cheating provision (it replaced IPC Sections 415, 417, 418 and 420). Cheating by dishonestly inducing a person to deliver property is punishable under Section 318(4) with imprisonment up to seven years and fine.
• BNSS Section 173(1): Police shall register an FIR if the information discloses the commission of a cognizable offence.
• If the police refuse to register the FIR, the aggrieved person may send the information in writing to the Superintendent of Police under BNSS Section 173(4), and may also file a complaint before the Magistrate under BNSS Section 223.

When to consider it:

• The bank has not credited the amount despite your written complaint, nodal-officer escalation, and a reasonable wait, and the delay is unexplained.
• The bank categorically rejected your claim with demonstrably false evidence (e.g., a “transaction successful” log without explaining the missing cash dispense).

Note that a genuine billing or reconciliation dispute is usually a civil/regulatory matter; a criminal complaint is appropriate only where there is real evidence of dishonest deception.

Where to file:

• Cyber-crime police station in your district (report online at https://cybercrime.gov.in), because ATM disputes involve electronic banking systems.
• Alternatively, your local police station with jurisdiction over your residence; they will transfer it to the cyber cell if needed.

FIR contents:

• Accused: the bank (entity), and, if known, the officer responsible; if ascertainable, the ATM service provider (check the ATM sticker for the operator, e.g., CMS Info Systems, AGS Transact).
• Date, time, place of offence: ATM transaction details.
• Manner of deception: “My card transaction debited my account electronically but no cash was dispensed, and the bank dishonestly refused reversal, constituting cheating under BNS Section 318.”
• Loss: ₹ amount.
• Evidence: Attach the same documents as the bank complaint.

If the police ask you to first exhaust the Banking Ombudsman remedy, politely cite BNSS Section 173(1), which mandates FIR registration where a cognizable offence is disclosed; the existence of an alternate civil remedy does not, by itself, bar criminal proceedings where genuine deception is established.

Warning — Filing a false or frivolous FIR can itself attract penal consequences. Ensure your claim is bona fide and evidence-backed.

To,
The Branch Manager
[Bank Name], [Branch Address]
[City, PIN]

CC: Nodal Officer / Grievance Redressal Officer, [Bank Name] (email: [email protected])

Date: [DD/MM/YYYY]

Subject: Failed ATM transaction – Cash not dispensed but account debited ₹[amount] – Auto-reversal demanded under RBI TAT circular dated 20 September 2019

Respected Sir/Madam,

I hold Savings Account No. [XXXX-XXXX-XXXX] with your branch. On [Transaction Date DD/MM/YYYY] at [Time HH:MM], I used my Debit Card ending [last 4 digits] at ATM ID [ATM-ID], located at [Full Address], operated by [Bank Name if different].

Transaction details:
  • Date-Time: [DD/MM/YYYY HH:MM]
  • ATM Location: [Address, City]
  • Amount requested: ₹[Amount]
  • Transaction Reference No. (from SMS): [Ref No.]
  • Debit SMS received: [Timestamp], ₹[Amount] debited from Acct [XXXX-ending].

Issue: The ATM did not dispense any cash. The screen displayed "Transaction could not be completed" and printed a slip confirming the failed transaction. However, my account was debited ₹[Amount] as per the SMS and account statement.

Enclosed evidence:
1. Copy of ATM transaction slip (or screenshot of error screen).
2. Screenshot of debit SMS.
3. Account statement excerpt showing debit entry.

Legal position:
Under the RBI circular on Harmonisation of Turn Around Time (TAT) and customer compensation for failed transactions (DPSS.CO.PD No.629/02.01.014/2019-20 dated 20 September 2019), a failed ATM transaction must be auto-reversed within T+5 calendar days, failing which the bank must pay ₹100 per day of delay as compensation. As of today ([Date]), no credit has been posted.

Relief sought:
1. Immediate credit of ₹[Amount] to my account.
2. ₹100 per day compensation for any delay beyond T+5, as per the RBI TAT circular.
3. Written confirmation of credit and closure of complaint.
4. Copy of the ATM reconciliation report and CCTV footage for the transaction time; please preserve the footage pending this complaint.

I request you treat this as urgent. If the amount is not credited, I will escalate to the RBI Ombudsman under the Reserve Bank – Integrated Ombudsman Scheme, 2021, and reserve the right to approach the consumer forum under the Consumer Protection Act, 2019 for deficiency in service and, if warranted by the evidence, to file a criminal complaint for cheating under the Bharatiya Nyaya Sanhita, 2023.

Awaiting immediate action.

Yours faithfully,
[Full Name]
[Address]
[Mobile No.]
[Email ID]
[Account No.]

Enclosures: As listed above.

Most citizens miss this — They write “urgent request” but omit statutory references. Citing the RBI TAT circular and the ₹100/day compensation signals you are legally informed, prompting faster resolution.

Subject: Failed ATM transaction – Cash not dispensed, account debited – Bank non-compliance with RBI auto-reversal SLA

Complainant: [Your Full Name]
Account No.: [XXXX-XXXX-XXXX]
Bank: [Bank Name], [Branch]
Complaint filed with bank on: [Date]
Bank complaint reference: [Ticket No.]

Brief facts:
On [DD/MM/YYYY] at [HH:MM], I withdrew ₹[Amount] from ATM ID [ATM-ID], [Location]. The ATM displayed an error and dispensed no cash, yet debited my account ₹[Amount] (SMS ref [Ref No.]).

I lodged a written complaint with the bank on [Date] via email and registered post (proof attached). The bank acknowledged the complaint [Ticket No.] but failed to credit the amount within the RBI-mandated T+5 calendar days. As of today ([Current Date]), [X] days have elapsed with no credit and no satisfactory response from the bank.

Ground of complaint:
Non-adherence to the RBI TAT circular dated 20 September 2019 (auto-reversal SLA and ₹100/day compensation) and deficiency in banking service under the Consumer Protection Act, 2019.

Relief sought:
1. Direction to [Bank Name] to credit ₹[Amount] immediately.
2. ₹100 per day compensation for delay beyond T+5 as per the RBI TAT circular.
3. Compensation for the time lost, expenses, and harassment caused.
4. Bank to issue written confirmation and confirm systemic rectification to prevent recurrence.

Documents attached:
• Bank complaint letter and acknowledgment
• ATM slip / screen photo
• Debit SMS screenshot
• Account statement excerpt
• Bank's rejection letter / no-reply evidence

I declare the above information is true to the best of my knowledge.

Date: [DD/MM/YYYY]
Place: [City]
[Signature / Name]

Consumer courts have repeatedly treated a failed ATM transaction—where the account is debited but no cash is dispensed—as a deficiency in service, and have placed the burden of proof on the bank to establish that cash was actually dispensed (for example, by producing the ATM's electronic journal log, the end-of-day cash-balancing record, and CCTV footage). Where the bank cannot produce such evidence, the National Consumer Disputes Redressal Commission (NCDRC) and State Commissions have ordered banks to refund the disputed amount with interest and to pay compensation for harassment.

On the criminal side, the Supreme Court in Iridium India Telecom Ltd. v. Motorola Incorporated (2011) 1 SCC 74 held that a company can be prosecuted for cheating and that criminal intent can be attributed to a corporation through the acts and intentions of the persons who control it—so the involvement of a bank or other institution is not, by itself, a reason to treat a genuine cheating complaint as non-maintainable.

Under BNSS Section 173, if a police officer refuses to register an FIR for a cognizable offence (cheating under BNS Section 318 is cognizable), the complainant may approach the Superintendent of Police under Section 173(4), or file a private complaint before the Magistrate under Section 223.

Trust signal — Putting the burden squarely on the bank to prove the cash was dispensed, and citing the RBI TAT circular in your complaint, demonstrates legal preparedness and often accelerates resolution as the bank recognises the litigation risk.

File the complaint with Bank A (your card-issuing bank). Bank A is liable to credit your account within T+5 days irrespective of whether Bank B's ATM malfunctioned. Internally, Bank A will reconcile with Bank B through NPCI's dispute-resolution mechanism, but that is not your concern. You deal only with your own bank.

Demand the ATM electronic journal / reconciliation report and CCTV footage in writing, and ask the bank to preserve them. The end-of-day cash-balancing record shows the physical cash count in the ATM cassette; if it matches the start-of-day count minus only the cash actually paid out, it can corroborate that no cash was dispensed to you. If the ATM belongs to a public-sector bank, you can also seek records under the RTI Act, 2005. If the bank refuses to produce evidence, escalate to the RBI Ombudsman citing “evidence suppression.”

Yes. Beyond the refund, the RBI TAT circular itself entitles you to ₹100 per day for any delay beyond T+5. Under the Consumer Protection Act, 2019 you can also claim compensation for time, effort, mental agony, and deficiency in service, and the RBI Ombudsman can award compensation for your loss plus up to ₹1 lakh for time, expenses and harassment.

Yes. The credit was late, so demand the ₹100/day compensation for the delay beyond T+5, written confirmation of the credit, and an explanation. If you close the complaint without this, the bank records it as “resolved” with no corrective action, and the same error may recur for you or others.

Yes. Your SMS notification and bank account statement are primary evidence. In your complaint, explain that you did not receive a slip (or the ATM did not print one) and the screen went blank. Request the bank to pull the electronic journal log from its server; ATM transactions are logged with status codes (successful, failed, timeout, reversed), and the log will typically corroborate your claim.

Not fatally. The electronic transaction log (server-side) is often more decisive than video. The log timestamp, your SMS timestamp, and the absence of a confirmed “cash dispensed” signal can collectively support your case even without video evidence.

It varies, but the scheme is designed for relatively quick, cost-free redress. The Ombudsman calls for the bank's reply, examines the evidence, may hold a brief hearing (your physical presence is often not required if the documents are comprehensive), and issues an award that is binding on the bank. If the bank or you appeal to the Appellate Authority under the scheme, that adds further time.

Generally not advisable. Under the RB-IOS 2021, the Ombudsman will not proceed on a complaint that is already pending before, or has been decided by, a court, tribunal or consumer forum on the same subject matter. File with the Ombudsman first (faster, free). If you are dissatisfied with the outcome, you can then pursue the consumer forum, carrying the Ombudsman's findings as evidence.

Citizen tip — ATM and debit-card complaints are among the most common banking grievances in India, yet many people never escalate because of these myths. Knowing the T+5 rule and the ₹100/day compensation puts the law on your side.

• AI RTI Drafter: Auto-generate RTI applications to public-sector banks for ATM reconciliation reports and CCTV footage — https://righttoinformation.wiki/tools/rti-assistant
• PIO Reply Checker: Validate whether your bank's RTI response complies with transparency norms — https://righttoinformation.wiki/tools/pio-reply-checker
• Citizen Crisis Response Network: Master hub for consumer, banking, and civil-rights escalation workflows — https://righttoinformation.wiki/citizen-crisis-response-network
• RTI Act 2005 Complete Guide: Understand your right to information for banking-dispute evidence — https://righttoinformation.wiki/rti-act-2005-complete-guide

An ATM that debits your account but delivers no cash is not a “technical glitch”—it is a deficiency in service under the Consumer Protection Act, 2019, a breach of the RBI's binding turn-around-time rules, and potentially cheating under BNS Section 318 if the bank knowingly delays reversal despite clear evidence. You are not requesting a favour; you are asserting a statutory right backed by the RBI's TAT circular, the NPCI dispute framework, and a long line of consumer-court precedent. The five-day auto-reversal SLA—and the ₹100/day compensation for missing it—exists because the banking regulator recognises the power asymmetry between citizen and institution. When you follow the roadmap in this guide—evidence at the ATM, a 24-hour complaint, T+5 monitoring, Ombudsman escalation, and a criminal FIR only where the evidence justifies it—you convert that asymmetry into accountability. Preserve every byte of evidence, put each demand in writing, and remember: in banking disputes, your written complaint is the first and most important step toward getting your money back.