Regulatory and Other Measures

RBI/2008-09/385 Ref. No. UBD.CO. BPD. (PCB) Cir. No.50/09.39.000/2008-09 dated February 17, 2009

To Chief Executive Officer All Primary (Urban) Co-operative Banks

Reconciliation of Transactions at ATMs Failure-Time Limit

We enclose copy of circulars issued by Department of Payment and Settlement Systems, Reserve Bank of India, DPSS No. 711 / 02.10.02 / 2008-09 dated October 23, 2008 and DPSS No.1424 / 02.10.02 / 2008-09 dated February 11, 2009 advising the banks to strictly adhere to the time discipline of 12 days, from the date of receipt of complaints, prescribed for reimbursement to the customers the amount wrongfully debited to their account. The directions have been issued under Section 18 of Payment and Settlement Systems Act 2007 (Act 51 of 2007).

RBI/DPSS.No.711/02.10.02/2008-2009 dated October 23, 2008

The Chairman and Managing Director /Chief Executive Officers

All Scheduled Commercial Banks including RRBs / Urban Co-operative Banks/State Co-operative Banks / District Central Co-operative Banks

Reconciliation of Transactions at ATMs Failure - Time Limit

The use of Automated Teller Machines (ATMs) for cash withdrawal has been increasing in the country. However, of late, we have been receiving a number of complaints from bank customers, regarding debit of accounts even though the ATMs have not disbursed cash for various reasons.

More importantly, banks take considerable time in reimbursing the amounts involved in such failed transactions to card holders. In many cases, the time taken is as much as 50 days.