Money was deducted but the ATM didn't dispense cash. What do I do?

RBI's Master Circular dated 20 September 2019 (consolidating earlier circulars from 2008 onwards) sets binding turnaround times for failed transactions.

ATM failure — money debited but cash not dispensed: auto-reversal expected within T+5 working days, with compensation of ₹100 per day of delay beyond T+5. Applies whether the ATM belongs to your own bank or another. POS / card failure: same T+5 reversal and ₹100/day compensation. UPI failure — money debited but not credited to beneficiary: T+1 working day reversal with ₹100/day compensation. IMPS failure: similar T+1 reversal. Aadhaar Pay (AePS) failure: T+5 reversal. NEFT / RTGS where credit doesn't reach the beneficiary: return to remitter within T+1 with ₹100/day compensation.

Key point: compensation is automatic. The bank must credit your account with principal plus compensation without you asking — you don't need to claim it. If the bank doesn't credit compensation, that itself is grounds for further complaint.

Move quickly after a failed ATM transaction — evidence and reporting both matter.

Step 1 — take a photo of the ATM screen if it shows an error message. This helps establish the failure. Step 2 — save the transaction slip: if a slip prints showing failed transaction, save it; if no slip prints but money was debited, note the ATM ID (usually displayed), branch, time and amount; stay at the ATM for a few minutes — some machines dispense cash after delay.

Step 3 — check bank balance immediately via SMS, app or balance enquiry at the same ATM. Step 4 — within 24 hours: call your bank's customer care and lodge a complaint; note the reference number; use the bank's app-based complaint flow where available; for UPI failures, also raise a dispute via the app (PhonePe, Paytm, GPay all have dispute flows).

Step 5 — document everything: photo of ATM screen or slip; SMS alerts from bank (debit notification); customer care call recording or chat transcript; complaint reference number; bank statement showing the debit.

Step 6 — wait for auto-reversal — T+5 working days for ATM (T = transaction date).

If the bank doesn't reverse the failed transaction, escalate deliberately.

Bank's internal grievance mechanism: file a written complaint via email and the bank's online portal; reference number generation is mandatory. Specify transaction date, amount, ATM / POS details, reason for dispute, and demand principal reversal plus ₹100/day compensation per RBI rules. Wait 30 days as per RBI's complaint resolution norms.

Bank's Internal Ombudsman: every bank has one under an RBI Master Direction — contact details on the bank's website. Free and quick before going external.

RBI Integrated Ombudsman Scheme, 2021: file online at cms.rbi.org.in — free, integrated forum for all bank / NBFC / PPI complaints. Complaint must be filed within 1 year of bank's reply or 3 years from cause of action; bank must have been approached first with a 30-day window. The Ombudsman can award compensation up to ₹20 lakh plus up to ₹1 lakh for mental agony; decisions are binding on the bank.

Consumer Forum via E-Daakhil: for amounts within District Commission jurisdiction (₹50 lakh); concurrent with the Ombudsman but typically used for complex disputes. See our consumer complaint guide. Writ petition in the High Court is available for systemic non-compliance with RBI directions.

Multi-bank ATM transactions follow the same rules.

Your bank is the customer-facing contact — file the complaint with your bank, not with the ATM owner bank. Your bank handles reconciliation with the ATM owner bank through NPCI's Dispute Management System. The T+5 timeline runs from the transaction date regardless of which bank's ATM was used. ₹100/day compensation applies — your bank pays you and recovers from the ATM owner bank internally.

Free transaction limits: at other-bank ATMs, the first 5 transactions per month at metro ATMs and 3 at non-metro ATMs are free. Beyond that, ₹21 per transaction (₹7 for non-cash). RBI revises these periodically. Repeated failures at the same ATM: also write to the ATM owner bank requesting investigation or replacement.

For Aadhaar Pay (AePS) failures at Banking Correspondent (BC) points or Customer Service Points (CSPs), the issuer bank is the contact and the T+5 rule applies. White-label ATMs operated by Tata Indicash, Hitachi and others follow the same rules — your bank remains the contact point.

UPI failures work differently — both the originating and beneficiary bank can be approached and NPCI acts as consolidator, with a T+1 timeline. See our UPI fraud guide.

RBI's compensation is the minimum — you can pursue additional remedies for specific damages.

RBI Ombudsman additional compensation — up to ₹1 lakh for 'mental agony, harassment and time spent' (separate from monetary loss). Consumer Commission damages for proven specific losses caused by the failed transaction: missed medical payment deadline as a consequential loss claim; travel disrupted (flight missed for cash unavailability) as demonstrable damages; incomplete business transaction as quantified business loss; mental harassment over repeated complaints as punitive damages.

Civil suit for damages is available for substantial losses beyond Consumer Forum jurisdiction — less common but available. Writ petition for systemic failures: if the bank shows a pattern of failures affecting many customers, a PIL or representative action is possible.

Strong cases involve: documented attempts at resolution; specific quantifiable consequential loss; bank negligence or wilful delay; multiple instances showing a systemic problem.

Practical tip: for most simple cases, RBI's automatic ₹100/day is the easiest route. Pursue larger damages only when actual losses justify the effort. Engage a reputable, specialised consumer / banking lawyer for complex claims.

For broader banking dispute resolution, see our CIBIL dispute guide and UPI fraud guide.