Banking
Personal Finance Exclusive
Money lost in Bank of Maharashtra ATMs
Depositors suffer delays in getting back their wrongly debited amounts from ATMs. This time, it’s a father who lost Rs30,000 he needed for daughter’s college admission
 
On 2nd of June, Pune based Kiran Chaptekar went to the Thergaon (suburb in Pune) ATM of Bank of Maharashtra to withdraw Rs20,000 for his daughter’s college admission. However, no cash came out. So, he immediately went to another ATM, also of BoM to withdraw. This time he wanted to withdraw Rs10,000. He put in his card but again no cash came out. However, he found to his shock that Rs.30,000 has been debited from his account in the Karve Road branch.
 
Worried, he rushed on 2nd June itself to the Thergaon branch and met the Branch Manager. He asked him to furnish details of his complaint through a form, provided by the bank. He promptly filled it up and gave it to him. Strangely on 3rd, the manager of the Thergaon Branch handed him over a document which states the status of both the transactions as `Success Fail’’ – whatever that means. Chaptekar pleads that how can the manager write that the transactions have been successful when he has not received any money.
 
The manager says he is helpless and that Chaptekar should go to the Karve Road branch of Bank of Maharashtra where he has his original account and register a complaint there too. So, Chaptekar goes to the said branch on 4th June and registers a complaint by filling up another complaint form provided by the bank. Ever since then he is being making visits to the Karve Road branch, where the bank official Ms Sabnis says she has sent his complaint to the appropriate authority and has not received a reply. She keeps assuring that Chaptekar’s Rs30,000 would be credited back in a couple of days.
 
Chaptekar is awaiting the mandatory 7 working days within which a bank is mandated to credit back into the account. If it does not happen, then he would be filing a RTI
 
What can a customer do if he or she faces a similar situation?
Please remember the following rules of Reserve Bank of India which have been put up in Q&A format, on most public and private bank websites
 
What should be done in case during the cash withdrawal process, cash is not disbursed by the account gets debited for the amount?
The customer may lodge a complaint with the card issuing bank. This process is applicable even if the transaction was carried out at another banks ATM.
 
How many days maximum would the bank require to re-credit the account for such wrong debits?
As per the RBI instruction, the issuing bank may re-credit such wrongly debited amounts within a maximum period of 7 working days from the receipt of the customer compliant.
 
Are customers eligible for compensation for delay beyond 7 working days?
Yes, effective July 1, 2011, banks shall pay customers a sum of Rs100 per day for delays beyond 7 working days (if the complaint is lodged with the issuing bank within 30 days). This compensation shall be credited to the customer's account without any claim being made by the customer.
 
In case the compensation is not credited as mandated, what recourse does the customer have?
For all such complaints customer may lodge a complaint with the local Banking Ombudsman if the bank does not respond.    
 
Please remember you can and you must file RTI and ask the following questions:
  1. What is the status of my complaint of the wrongly debited amount (please mention amount, account no. date of complaint ) 
  2. Please supply me name and designation of the officer responsible for the delay in crediting the money back to my account within the stipulated 7 days as prescribed by Reserve Bank of India?
  3. What action has been taken against the officer for dereliction in this duty?
  4. Reasons why my money was not credited into my account on the very same day?
  5. In how many cases in this year (mention from which month to month) was this law violated?
  6. What corrective action have you taken from your side, to avoid such delays?
 
 
 
The Reserve Bank circular of 2009 on ATM withdrawals. (Remember, thereafter the bank has been directed to pay penalty if it does not credit the amount within 7 working days and not 12 working days as stated in this circular):
 
Following is the circular directive from the RBI dated 17 July 2009, under Section 18 of the Payment and Settlement Systems Act 2007, states:
 
* The Reserve Bank of India has been receiving a number of complaints, regarding the non-adherence of banks to the instructions stipulated therein. Further, it has come to our notice that different banks have put in place different cut-off limits for permitting cash withdrawals from/for other bank customers. These issues have been comprehensively reviewed by the Reserve Bank of India and all banks may follow the following directives:
 
* Banks are required to reimburse to the customers, the amount wrongfully debited on account of failed ATM transaction within a maximum period of 12 days from the date of receipt of customer complaint.
 
* For any failure to re-credit the customer’s account within 12 working days from the date of receipt of the complaint, the bank shall pay compensation of Rs100 per day to the aggrieved customer. The compensation shall be credited to the customer’s account automatically, without any claim from the customer, on the same day when the bank affords the credit for the failed ATM transaction.
 
The issuer bank is entitled to claim such compensation paid to the customer from the acquirer bank if the delay is attributed to the latter. By the same logic, the ATM network operators shall compensate the banks for any delay on their part.
 

* Each bank shall present a quarterly review of ATM transactions to its board of directors, indicating inter alia, the quantum of penalties paid, reasons thereof and the actions taken to avoid recurrence of such instances. A copy of the note along with observations of the board shall be forwarded to the chief general manager, Reserve Bank of India, Department of Payment & Settlement Systems, Mumbai.

 
 

 

User

COMMENTS

Senior Citizen

1 year ago

Yesterday Zimbabwe cumpulsorily converted Bank Deposit holders Zim Dollars to USD @ 5$ = 175,000 Trillion Zim Dollars. In 1980 One USD was equal to one Zim Dollar. This will be effect of gross mismanagement which Indian politicians/Bureaucrats and Banksters should understand.

A S Bhat

1 year ago

One can also simply ask for a complaints book. Most bank hesitate to give such a book to customers because a copy of the complaint automatically goes to the Ombudsman, as I understand.

Navin Jain

2 years ago

Well.. Such cases are all over the place.. I attempted octroi on the website of MCGM, Maharashtra in Aug last year. I had purchased a car out of Mumbai and had to bring it to Mumbai for registration. That requires me to pay the Octroi tax. The first attempt to pay online from my Axis Bank account failed. I did not get the unique transaction code. I thought this is not a problem as the money would be credited back to my account due to the transaction failing. So I tried again and this time used another bank's account. This time the transaction was successful and I was able to generate the octroi paid certificate and brought my newly acquired car to Mumbai. I kept waiting for the money to be refunded for almost a week. Nothing happened. Then I started enquiring about the transaction process. People chided me when I told them that I tried using the online channel for making the payment instead of paying thousand rupees to some agent for getting the job done. One person actually told me that I deserved to suffer for trusting the government's service. Nonetheless I checked for the refund department - located in Kanjur Marg. when I reached there it was the usual government office story. Files were all over the place, scattered and with kilos of dirt on them. People kept asking me to go to some other table. Finally I spoke to a senior person there who guided me to a junior guy. This guy told me very candidly that any refund should not be expected before a couple of years because the process involved many staff and departments within MCGM. I have made at least 4 more visits since the and every time I am told that the refund request has moved to the next table. There is no one who proactively contacts me to speak about the process. I have no visibility when the refund of the INR 40000 odd would be made or if it would be made at all. It's mind numbing that such inefficiencies are tolerated in our society and the government servants think that they are above everyone else here and are not answerable to anyone for their conduct.

REPLY

TIHARwale

In Reply to Navin Jain 2 years ago

That way Indian Railway is best, irrespective of transaction user following it up the money gets credited back before 3rd working day post the failed transaction day. Similarly in the case of utility companies when Bill Desk is utilised as payment gateway the transaction gets updated with subsequent 3 working days. So MCGM may be a corrupt organisation because once u have lodged a complaint it doesnot take time to find out whether transaction succeeded or failed and in case of failed they have to just return online to sender bank account

webkitendfullscreen

In Reply to TIHARwale 1 year ago

Yeah.. Obviously MCGM ruled by the BJP-Shiv Sena regime and run by crorepati corrupt bureaucrats is not a showing example.. They keep the process as convoluted as possible and as much of it through paper trails that one cannot get out of the maze without greasing a number of palms in the way.. I should possibly be reconciled to pay 10-20 percent of my money which has gone to the MCGM and BMC coffers in error due to the lax technology deployed by them and Tech Process. No wonder no one would be using the online process. Of course they also don't want customers took online and pay - otherwise how will they get the opportunity to make some money on the side. Am sure they let the people go without having to pay tax in 50 percent of the cases by giving them maybe 10-20 percent of the tax payable. Tax rates are kept artificially high so that people participate in these corrupt practices to save their hard earned money. If the tax rates were to be rationalised a lot more people would be more forthcoming in paying their share of taxes.
Anyway back to MCGM, there is no mechanism of lodging any online complaint, no one from their department has ever gotten in touch asking if the issue has been resolved.
Shouldn't publications like MoneyLife expose these practices and force governments to have better consumer facing systems.

TIHARwale

2 years ago

Kiran Chaptekar need not go thro this much hassle. 99% he will get his money because if account is debited but cash not dispensed the undelivered cash will in the divert bin inside the ATM cabinet only. Since ATM needs to refilled at time of fresh loading this much amount will be surplus. So the Bank staff or out sourcing agency would have noticed this difference in amount while reconciliation. Now a few issues which Kiran Chaptekar should clarify. was he not having mobile alert which would have alerted him about the debit of Rs 20,000/- which was not dispensed if not then when he realised that Rs 10,000/- was debited but not disbursed.
All said and done Kiran Chaptekar should get his money back. In case the same is not done he should demand for ATM cash loading details prior and post his transaction for this particular ATM. There is strong possibility of the cash loading persons are not cheating the BRANCH OFFICIALS of Bank of Maharashtra might not have been cross checking once a month which is mandatory . Vinita Deshmukh may take up with R.Athmaram ED of BOM who being in IT Dept with Andhra Bank will be very much aware of reconciliation of ATM cash and also the duty of branch officials to certify once every month that the cash of ATM is reconciled electronically with physical cash.

Vaibhav Dhoka

2 years ago

When it comes to refund and paying compensation most bank avoid to pay unless there is directives from consumer court or ombudsman.ombudsman. Hence forth compensation for delay should deducted from officer liable to make timely payment.

Cabinet approves ordinance to amend Negotiable Instruments Act
The union cabinet on Wednesday decided to promulgate an ordinance to amend the Negotiable Instruments Act to provide for filing of cases about dud cheques at places where these are presented.
 
"The cabinet has given its approval for the proposal to promulgate the Negotiable Instruments (Amendment) Ordinance, 2015," an official release said. 
 
It said that the proposed amendments to the Negotiable Instruments Act, 1881 ("The NI Act") were focused on clarifying the jurisdiction related issues for filing cases for offence committed under section 138 of the Act. 
 
"The clarification of jurisdictional issues may be desirable as this would be in the interests of the complainant and would also ensure a fair trial," the release said. 
 
It said that clarity on jurisdictional issue for cases of cheque bouncing would increase the credibility of the cheque as a financial instrument.
 
"This would help the trade and commerce in general and allow the lending institution, including banks, to continue to extend finance to the economy, without the apprehension of the loan default on account of bouncing of a cheque," the release said. 
 
Section 138 of the NI Act deals with the offences related to dishonour of cheque for insufficiency of funds in the drawer's account.
 
The release said that various financial institutions and industry associations have expressed difficulties due to recent legal interpretation by the Supreme Court of the place of jurisdiction for filing cases to be the place of drawers' bank.
 
"To address the difficulties faced by the payee or the lender of the money in filing the cases because of which, large number of cases were stuck, the jurisdiction for offence under Section 138 has been proposed to be clearly defined," it said.
 
The Negotiable Instruments (Amendment) Bill, 2015 was passed in the Lok Sabha last month but could not be taken up in the Rajya Sabha.
 
The release said that the objective of the ordinance is to ensure fair trial keeping in view interests of the complainant by clarifying the territorial jurisdiction for cases for dishonour of cheques.
 
Officials said the move will benefit 18 lakh people.

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COMMENTS

Vaibhav Dhoka

2 years ago

My complaint in S.C.C.No:-2105/2004 in JFMC court no 6 Pune is pending since 11 years police failing to produce opponents in court and judge failing to take action on public notice summon dated 5/8/2010.In courts complainant is seen as culprit.The fact is complainant gets harassed and looses interest in case which is boon for judges.I informed Mumbai High Court and Pune District court without any feedback.With police hand in glove with opponent cases are dragged too long.

China's Dalian Wanda to set up industrial townships in India
The $100-billion Dalian Wanda Group of China is planning to develop industrial townships in India with built-in facilities such as schools, hospitals, shopping malls and recreational centres, a top official of the company has said.
 
Wang Jianlin, chairman of the group, expressed his company's interest while interacting with the Indian business community convened by the Confederation of Indian Industry (CII) here, according to a statement from the chamber.
 
Wang said that he was impressed with the foreign investment norms of the government and said this was his follow-up visit to India after meeting with Prime Minister Narendra Modi during his China visit in May.
 
He said that he would closely work with the local state governments to attract Chinese investments in the industrial townships set up by the Dalian Wanda Group.
 
Amitabh Kant, secretary, Department of Industrial Policy and Promotion, told the session that areas such as media and entertainment, tourism and culture should also be promoted bilaterally to create people to people awareness.
 
In his opening remarks, Chandrajit Banerjee, director general, CII, said that the centre piece of recent India - China engagement has been their cooperation in the economic sphere and the widening footprint of Chinese businesses in India and vice versa.
 
The $100-billion dollar Chinese company founded in 1988 operates in the areas of commercial property, luxury hotels, culture and tourism and department stores.
 
As many as 40 senior industry members from infrastructure, construction, tourism, hospitality, media and entertainment participated in the interactive session.

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