ATM Cash Not Dispensed but Debited? Get ₹100 a Day
ATM did not give cash but your account was debited? RBI says reverse it within T+5 days or pay ₹100 a day. Steps, the complaint template and where to escalate.
In this article
"The ATM made all the right noises, no cash came out, and I've just got an SMS saying ₹10,000 debited." If this is you, the one-line fix is: note the ATM ID, time and transaction number, wait up to five days for the automatic reversal, and if it does not arrive, complain to your own bank, which then owes you ₹100 for every day of delay. This is one of the most clearly protected situations in Indian banking: RBI sets a hard deadline and a penalty, and the penalty is supposed to reach you without your asking.
What usually happened
The ATM sent a debit request to your bank, your bank approved it, and then something went wrong before or during dispensing: the machine ran out of cash, the shutter jammed, or the network timed out. In most cases the ATM's electronic journal records that cash was not dispensed, and the reversal goes through automatically within a day or two.
A smaller number of cases are disputes: the machine's log shows the cash as dispensed, or the dispenser gave less than the amount. These need a complaint and an investigation, which is why your notes from the first minutes matter.
What to do, step by step
At the ATM, in the first few minutes
- Do not walk away immediately. Sometimes cash is presented late. Wait a minute and check the slot.
- Note the details: ATM ID (printed on the machine or on the slip), location, date, exact time, amount and any transaction number on the slip or SMS. Take a photo of the machine and the screen if it shows an error.
- If the ATM is in a bank branch during working hours, tell the branch staff. They cannot reverse it on the spot but can log the incident.
- Do not accept help from strangers at the ATM, and do not let anyone "try your card again" for you.
Within 24 hours
- Check your account. Many failed transactions reverse automatically within hours.
- If not reversed, register a complaint with your own bank through its app, net banking, official customer care number or any branch. Choose "ATM cash not dispensed" or "failed ATM transaction" and get a complaint number. This applies even if you used another bank's ATM or a white-label ATM.
After T+5 if still unresolved
- Ask for the reversal plus compensation of ₹100 per day of delay, quoting RBI's TAT circular.
- Escalate to the grievance redressal officer with your complaint number if the bank says the "ATM log shows successful dispense" and you disagree. Ask for the ATM's electronic journal (EJ) extract and, where available, the result of the cash reconciliation and CCTV review.
- Go to the RBI Ombudsman at cms.rbi.org.in if there is no final reply within 30 days. See bank not resolving your complaint.
What you are owed under RBI rules
RBI's circular on Harmonisation of Turn Around Time (TAT) and customer compensation for failed transactions using authorised Payment Systems (20 September 2019) remains the governing rule as of October 2026.
| Situation | Deadline | Compensation if late |
|---|---|---|
| ATM or micro-ATM: account debited, cash not dispensed | Pro-active reversal within T+5 days | ₹100 per day of delay beyond T+5 |
| Card at a shop (PoS), including cash at PoS: debited, no charge slip | Auto-reversal within T+5 days | ₹100 per day beyond T+5 |
| Card-to-card transfer: debited, not credited | Reversal by T+1 day | ₹100 per day beyond T+1 |
Other points worth knowing:
- Automatic, not on request. Compensation must be credited "suo moto" without waiting for a claim. If the reversal was late and no compensation has arrived, ask for it in writing.
- The deadline is an outer limit. Banks are expected to fix failures faster.
- Failed transactions should not eat your free withdrawals. RBI has instructed that transactions failing for technical reasons or non-availability of cash are not counted as valid for the free limit and are not charged. Beyond the free limit (five a month at your own bank's ATMs; three in metro and five in non-metro centres at other banks' ATMs), the maximum customer charge has been ₹23 per transaction since 1 May 2025.
If the same failure happened with an IMPS or UPI transfer rather than cash, see money debited but not credited.
Worked example: counting the compensation
You try to withdraw ₹10,000 on 3 October (T). No cash comes out, but your account is debited.
| Item | Calculation | Result |
|---|---|---|
| Reversal deadline | T+5 = 3 October + 5 days | 8 October |
| Actual reversal date | Bank credits back the ₹10,000 | 14 October |
| Days of delay | 9, 10, 11, 12, 13, 14 October | 6 days |
| Compensation | 6 × ₹100 | ₹600 |
| Total you should receive | ₹10,000 + ₹600 | ₹10,600 |
If you then used another bank's ATM to withdraw cash (after using up your free withdrawals) and were charged ₹23 plus GST, keep that slip as well; it is part of the inconvenience you can mention, though the RBI rule itself specifies only the ₹100 a day.
Partial dispense. If you asked for ₹10,000 and received ₹6,000, your complaint should be for ₹4,000. The bank reconciles the cash in the machine; an excess of ₹4,000 in the cassette count supports your claim.
A practical buffer helps: keeping a small emergency reserve in a sweep-in or short deposit means a stuck ATM debit does not leave you short. Our FD calculator shows what such a reserve earns, and our emergency fund guide covers how much to keep.
Where to complain
| Step | Where | When |
|---|---|---|
| 1 | Your card-issuing bank: app, net banking, customer care, any branch | If not reversed within 24 hours, and certainly after T+5 |
| 2 | Bank's grievance redressal or principal nodal officer | Bank rejects, cites "successful transaction" or ignores compensation |
| 3 | RBI Ombudsman at cms.rbi.org.in or 14448 | No final reply in 30 days; file within 90 days |
Under the Reserve Bank – Integrated Ombudsman Scheme, 2026 (from 1 July 2026), unpaid TAT compensation is a clear deficiency in service, and the Ombudsman can also award up to ₹3 lakh for loss of time, expenses and harassment.
Ready-to-copy complaint message
Subject: ATM cash not dispensed but account debited – ATM ID [ID] – [date]
Dear Sir/Madam,
On [date] at [time], I attempted a cash withdrawal of ₹[amount] using my
debit card [last 4 digits] at ATM ID [ID], [bank/operator], [location].
No cash was dispensed [or: only ₹[amount] was dispensed], but my account
was debited by ₹[amount]. Transaction/reference no.: [ ].
As of [today's date], the amount has not been reversed. Under RBI's
circular on harmonisation of TAT and customer compensation for failed
transactions (20 September 2019), the debit should be reversed within
T+5 days, with compensation of ₹100 per day of delay thereafter.
Please reverse ₹[amount], credit the compensation due, and confirm in
writing. If the bank's records show a successful dispense, please share
the ATM electronic journal extract and cash reconciliation report.
[Name], [registered mobile], [account last 4 digits]
What not to do
- Do not call numbers stuck on or near the ATM or found through search results. Use the number on your card or in your bank's app.
- Do not share your card PIN, CVV or OTP with anyone offering to "process the refund".
- Do not repeatedly retry the same failed ATM; each attempt may create another debit to chase.
- Do not close the complaint when the principal comes back late without compensation.
- Do not wait months to complain. Escalation windows under the Ombudsman scheme are time-bound.
Key takeaways
- A failed ATM debit must be reversed within T+5 days under RBI's TAT rules.
- Every day of delay beyond that earns you ₹100, which the bank should pay automatically.
- Always complain to your own card-issuing bank, even for another bank's or a white-label ATM.
- Failed transactions should not count towards your free ATM withdrawals or attract charges.
- Escalate to the grievance officer and then cms.rbi.org.in if the bank disputes the failure or ignores compensation.
Frequently asked questions
How many days does a bank take to refund a failed ATM transaction?
RBI's turnaround time rules require the card-issuing bank to reverse a failed ATM debit within T+5 days, where T is the transaction date. Many reversals happen within 24 to 48 hours automatically.
What compensation do I get if the ATM refund is late?
₹100 for every day of delay beyond T+5, credited to your account. RBI's 2019 circular says the bank must pay this on its own, without waiting for you to claim it.
Should I complain to the ATM's bank or my own bank?
Your own bank, the one that issued the card, even if you used another bank's ATM or a white-label ATM. Your bank coordinates with the ATM operator through the card network.
What if the ATM dispensed less cash than the amount debited?
Treat it as a partial failure and complain to your bank immediately with the exact amount received. The bank checks the ATM's electronic journal and cash count; if there is excess cash in the machine, the difference is reversed.
Does a failed ATM transaction count towards free monthly withdrawals?
RBI has said transactions that fail for technical reasons, such as non-availability of cash, should not be counted as valid ATM transactions for the free limit, and no charges should be levied on them.
This article is for general education and is not personalised financial, tax or legal advice. Rates and rules are as of 21 Oct 2026; confirm current terms with your lender, AMC or a qualified adviser.
