ATM Fails to Dispense Rs 10,000, Bank Ends Up Paying Rs 3.43 Lakh to Surat Man: 9-Year Battle, 3,288-Day Delay Leads to 30x Compensation

What began as a routine cash withdrawal in Gujarat’s Surat turned into a nine-year legal battle that cost the bank nearly 30 times the original amount. After an ATM failed to dispense cash despite debiting Rs 10,000 from the customer’s account, repeated complaints and follow-ups yielded no resolution. 

How SBI ATM Glitch Debits Rs 10,000 Without Cash in Surat? 

The incident happened on February 18, 2017, when a customer in Surat’s Udhna area attempted to withdraw Rs 10,000 from an SBI ATM. Although he inserted his card and entered the PIN, the machine failed to dispense cash or issue a receipt. 

Shortly after, he received a message confirming the amont had been debited from his account, leaving him stunned. 

Why Bank Ignored Repeated Complaint? 

The customer lodged a written complaint at Bank of Baroda’s Dumbhal branch on February 21 and continued to follow up via emails between March and May 2016. He also approached the RBI and other authorities, and even filed an RTI with SBI seeking CCTV footage.

Despite multiple efforts, he received no satisfactory response, prompting him to finally approach the consumer forum on December 20, 2017. 

Bank Puts Blame on RBI 

During the hearing, Bank of Baroda claimed the ATM was operated by SBI and that the transaction was marked “succesful” in its records, denying responsibility. 

However, the consumer commission rejected this stand, stating the bank must present concrete proof. It also observed that as per RBI guidelines, the amount should have been refunded within five days, a rule the bank failed to follow. 

Court Orders Refund, Interest, and Rs 3.28 Lakh Compensation

In its final ruling, the commission directed Bank of Baroda to refund the Rs 10,000 along with 9% annual interest and pay a penalty of Rs 100 per day for the delay. 

By February 26, 2026, the delay had stretched to 3,288 days, taking the compensation to Rs 3,28,800. The bank was also asked to pay Rs 3,000 for mental harassment and Rs 2,000 towards legal costs.

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