Money deducted despite failed ATM transaction: Banks asked to compensate customer

A consumer forum has directed two public sector banks to pay a total of Rs 22,500 to a customer who had complained that Rs 10,000 was deducted from his account despite a failed withdrawal attempt at an ATM in 2012.

The banks indulged in "unfair trade practice", held the South Mumbai District Consumer Dispute Redressal Forum in the recent order.

Achhelal Vishwakarma, who had a savings account with Canara Bank's Mazgoan branch here, tried to withdraw Rs 10,000 from an ATM of Union Bank of India in March 2012.

The machine did not dispense the cash, but later he found that the amount had been deducted from his account.

According to Vishwakarma, both the banks did not address his complaint about wrongful deduction of money from his account.

He then moved the consumer forum against the banks.

The forum, in its August 27 ruling, said the banks failed to disprove his allegations as they could not produce the CCTV footage from the ATM when Vishwakarma had tried to withdraw money.

The complainant proved that the banks were negligent and committed "deficiency in services and unfair trade practice", the forum said.

It directed both the banks to refund Rs 10,000, and pay, in addition, a compensation of Rs 7,500 towards "mental agony" and Rs 5,000 for litigation cost.