Consumer Commission directs Axis Bank to pay for failed ATM transaction

The District Consumer Disputes Redressal Commission (Additional DCF) in Nagpur has held Axis Bank guilty of “deficiency in service” in connection with a failed ATM transaction and directed the bank to refund Rs 5,000 to a customer along with Rs 10,000 as compensation for harassment.

The commission observed that the non-receipt of cash despite the amount being debited from a customer’s account is a serious matter and banks have a responsibility to promptly investigate such complaints and provide immediate relief.

The case relates to an incident that occurred on August 19, 2018 . The complainant, a resident of Nagpur, had attempted to withdraw Rs 5,000 from an Axis Bank ATM. According to the complaint, the machine failed to dispense the cash, but the amount was debited from his account maintained with the Central Bank of India.

The customer said he immediately reported the issue and made several follow-ups with the bank’s customer care and head office. However, the matter was allegedly not resolved. The bank later claimed that the transaction was successful and in October 2024 closed the complaint, describing the customer’s claim as “false”.

Following this, the aggrieved customer approached the consumer commission seeking a refund and compensation for mental and physical harassment.The case was heard ex parte by Commission President Satish Sapre and member Milind Kedar after Axis Bank failed to appear before the commission despite being served a legal notice.

In its order delivered last month, the commission noted that the bank had not submitted any evidence to prove that the transaction was successful. It also failed to provide records showing that a proper inquiry was conducted, including verification of CCTV footage from the ATM.

The commission further observed that even after receiving notice from the forum, the bank did not file any defence or supporting documents.

“From the documents on record, it is clear that the bank did not take any of the complainant’s complaints seriously,” the commission said.

Holding that the deduction of money without dispensing cash amounted to deficiency in service, the commission directed Axis Bank to refund Rs 5,000 to the complainant and pay an additional Rs 10,000 as compensation for the mental and physical harassment caused.