Axis Bank pulled up for deficiency in service, ordered to refund Rs 5,000 and pay Rs 10K fine over failed ATM transaction
The Nagpur District Consumer Disputes Redressal Commission (Additional DCF), in an order last month, termed it a “serious matter” that cash was not received despite debiting money from the customer’s bank account, asserting that it is the bank’s responsibility to investigate such transactions and provide immediate assistance, according to PTI.
The failed transaction dates back to August 19, 2018, when the complainant, a resident of Nagpur, tried to withdraw Rs 5,000 from an Axis Bank ATM. Although the machine did not dispense cash, the amount was debited from the Reserve Bank of India account. Despite immediate complaints to the bank and subsequent follow-ups with customer service and headquarters, the complainant said her concern was ignored.
Axis Bank instead claimed that the transaction was successful and closed the case in October 2024, labeling the complainant’s claim as “false”. The customer then appealed to the commission for a refund and compensation, citing mental and physical abuse.
PTI said the matter was heard ex parte by commission chairman Satish Sapre and member Milind Kedar after Axis Bank failed to appear before the commission despite legal notice.
The commission said the bank did not provide “any evidence of proper investigation or CCTV verification” despite the customer repeatedly complaining, PTI reported. It also stated that the bank failed to provide any evidence even after receiving the commission’s notice and found that the bank failed to obtain a fair hearing through the ombudsman process.
“From the documents on record, it is clear that the bank did not take any complaint of the complainants seriously,” the commission said, according to PTI. he said. Failure to receive the money despite deducting the amount from the customer’s account “amounts to deficiency in service” on the bank’s part, the commission said, adding that the institution was directed to refund the amount as compensation for mental and physical harassment and pay Rs 10,000 to the complainant.
(With inputs from PTI)
