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Banks to pay fines for ATM errors
In order to a failed ATM transaction, Banks will now have to pay a compensation of Rs 100 per day to the accountholders. The Reserve Bank of India (RBI) has inflicted rigorous penalties on banks who fail to reverse a transaction where cash is not dispensed by the ATM.

A circular was issued on Friday in which RBI has declared that banks must re-credit such customer's accounts within 12 working days.

Besides inflicting the stiff penalty, the Central Bank also clarified that this amount needs to be credited to the customer's account automatically on the day of the re-credit without any claim made by the customer.

The bank must still pay the penalty to the customer, in case of the delay due to a third-party bank ATM through which the customer has interacted. However, the third-party bank will retrieve this amount from the card-issuing bank.

Furthermore, RBI prepared a critical note of different banks fixing different cutoff limits for allowing cash withdrawals for customers of other bank.

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