Prateek Tanmay
4 min readNew DelhiJul 3, 2026 06:00 PM IST
A Tamil Nadu consumer commission has ordered an ATM service provider to refund Rs 10,000 to a retired bank customer after holding it liable for “deficiency in service”. The customer’s account was reportedly debited despite the ATM displaying a “transaction declined” message and failing to dispense cash.
President P Ganeshram and member S Ravi observed that the act of the ATM service provider in not refunding the debited amount would have caused mental agony to the complainant, and the same has to be compensated.
“It would be just and reasonable that the Opposite Party No.2 shall pay a sum of Rs 10,000 to the Complainant towards refund of the debited amount of Rs 10,000 which amount was not dispensed from the ATM of Opposite Party No 2 for the complainant, a sum of Rs10,000 towards compensation for deficiency of service committed to the Complainant, a sum of Rs 5,000 towards compensation for mental agony caused to the Complainant and also pay a sum of Rs 5,000 towards cost of this complaint,” the order read.
Cash not dispensed
According to the complainant, he attempted to withdraw Rs 10,000 from an ATM at Sankagiri on July 3, 2025, but found the machine non-functional.
He then used another ATM nearby. During the transaction, the ATM displayed “transaction declined” and did not dispense any cash. However, he allegedly received an SMS informing him that Rs 10,000 had been debited from his bank account.
The complainant stated that despite repeatedly approaching the bank and the ATM service provider, sending a registered representation and later a legal notice, the amount was never credited back to his account.
He sought a refund of the debited amount along with compensation for mental agony, deficiency in service and litigation expenses.
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The bank denied any deficiency on its part and said that it had promptly raised a dispute with the ATM service provider and subsequently initiated pre-arbitration proceedings after the ATM operator rejected the customer’s claim.
The bank stated that they rendered the best possible services to their customers and took maximum efforts to recover the amount. Therefore, it denied any deficiency in service on its part.
The ATM service provider was sent notice; however, it did not appear before the commission and failed to file a written version within the mandated time.
ATM service provider held liable
- The commission noted that the bank had proved that it had taken necessary action on the complaint and therefore held that there was no deficiency in service on its part.
- The commission observed that the ATM service provider had failed to rebut the complainant’s evidence, which established that the transaction had been declined while the customer’s account had nevertheless been debited. It therefore concluded that the ATM operator was guilty of deficiency in service.
- “Opposite Party No.2 (ATM service provider) has failed to appear before District Commission and failed to prove its case. Hence, the contention made on the side of the Complainant being undisputed by Opposite Party No.2, the complaint made on the side of the complainant supported with sufficient material evidence has to be accepted,” the order read.
- The commission therefore directed it to refund Rs 10,000 to the complainant, pay Rs 10,000 as compensation for deficiency in service, Rs 5,000 for mental agony and Rs 5,000 towards litigation costs, all within two months.
- The complaint against the bank and RBI was dismissed.
Consumers facing similar grievances may contact the consumer helpline in their respective states (Tamil Nadu: 044-28592828) or dial the National Consumer Helpline at 1915 for assistance.
