The Hindu Business Line : Charges for 'excessive' use of ATM — ICICI Bank ordered to compensate customer

ICICI Bank charging its customers for alleged excessive use of ATMs could not be sustained in the absence of terms and conditions facilitating such levy, the District Consumer Disputes Redressal Forum, Chennai North, has held and ordered the bank to compensate the customer for the "deficiency in service".

The transaction done by the opposite party (bank) was not transparent, and the bank was in one way or the other trying to impose charges, which were not included in original terms and conditions.

The Forum, comprising Mrs R. Aparna, President, Mr V.M. Thandapani, Member I and Mrs Nagammai Karuppiah, Member II, directed the bank to refund Rs 975 charged towards excessive ATM use and to pay a compensation of Rs 5,000 and cost of Rs 1,000 to the customer.

The complainant, Mr K.P.S. Palanivelrajan, Kodambakkam, advocate, had a savings bank account with the ICICI Bank, which provided him with an ATM card that could also be used as a debit card. He went for shopping and used the ATM card to pay the bills. He found that the bank had charged him Rs 975 towards excessive use of the card. The bank had explained that he was allowed to use the ATM card only six times a month, but since he had used it excessively, the charge was justified. The complainant contended that he was not aware of such restriction for use of the ATM card, and the bank's terms and conditions were silent on this aspect.

The complainant submitted that two cheques issued by him in favour of a party had not been honoured by the bank, resulting in mental agony and hardships to him. The bank, however, had charged him Rs 200 towards return of the cheques.

The bank said the ATM facility had been provided to customers on the condition that they should maintain a quarterly minimum balance in their account. This was not followed by the complainant. The bank used to charge the customers for the failure to maintain the minimum balance.

Also, in case of usage of debit cards beyond certain period, charges would be levied on the customer. The cheques in question had come for collection on the date when there was no sufficient fund to clear them.

The Forum held that there was no condition stipulated for excessive usage of ATMs. There was no disclosure regarding the excessive charges made towards dishonour of the cheques, and the complainant had not been informed about the same. The bank had not filed any document to prove about the terms and conditions, which had been relied upon by it.

The transaction by bank was not transparent, and it was in one way or the other trying to impose charges, which were not found in the original terms and conditions.

"As such we find deficiency in service on the part of the opposite party. Hence, the complainant is entitled for Rs 975 debited by the opposite party towards ATM use charges . . . and Rs 200 towards cheque return charges," the Forum held.

The Forum granted two months' time for the payment failing which the complainant was at liberty to take legal proceedings against the bank.

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