The Hindu Business Line : They debit accounts without dispensing cash

Hyderabad, July 27 “I went to an ATM to withdraw Rs 10,000. The card got ejected without dispensing any money. This was followed by a debit receipt and an SMS message that the money had been withdrawn!”

This was the experience of a Banking Ombudsman in Hyderabad, and he is not alone. Of late, there has been an increase in cases where withdrawing money from the ATM has turned into an unpleasant experience.

“We have been receiving a good number of complaints about accounts getting debited without cash being dispensed from an ATM,” Mr M. Sebastian, Banking Ombudsman, told Business Line.

On an average, there are over 50 complaints a month in Hyderabad alone. The number could be much larger across the country. “Besides, there can be many customers who are taking up the matter with their banks on their own,” the official said.

The problem is not specific to any particular bank. While a customer may not finally lose his money, what is of concern is the mental agony of launching a complaint with the banks that are not always receptive.

“I wanted to withdraw Rs 18,000 from an ICICI ATM on a Saturday evening. I got only a receipt with a debit note. I was told to call customer care who in turn advised me to contact the branch which holds my account on Monday. It took three days for me to get back the money, after a Herculean effort,” said Mr Y. Kondiayya Sastry, a retired employee of National Dairy Development Board.

Disturbingly, some banks adopt a hostile attitude in helping aggrieved customers.

“In many cases, some banks act only after a formal complaint is launched with the Ombudsman. They should do the same when a customer complains to them directly,” said Mr Sebastian.

Credit grant

Concerned over malfunctioning of some ATMs, State Bank of Hyderabad (SBH) recently announced that an immediate credit up to a maximum limit of Rs 10,000 would be given on complaints of debit without cash delivery (pending enquiry).

“There should be amicable solutions for this problem as this is a technical error and money will be re-credited,” an SBH official said.

The increasing number of transactions in ATMs and failure in satellite signals once the transactions begin, could be behind the problem. So when you go to an ATM the next time, remember that apart from money, it can also dispense trouble.

More Stories on : Banking | Information Technology | Consumerism

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page