Axis Bank pulled up for deficiency in service, ordered to refund Rs 5,000 and pay Rs 10K fine over failed ATM transaction

A consumer commission in Maharashtra’s Nagpur has directed Axis Bank to refund Rs 5,000 and pay Rs 10,000 as compensation to a customer who lost the amount in a failed ATM transaction eight years ago, pulling up the bank for “deficiency in service,” PTI reported.

The District Consumer Disputes Redressal Commission (Additional DCF), Nagpur, in a verdict delivered last month, termed the non-receipt of cash despite the amount being debited from the customer’s bank account as “a serious matter,” asserting that it was the bank’s responsibility to examine such transactions and provide immediate relief, according to PTI.

The failed transaction dates back to August 19, 2018, when the complainant, a resident of Nagpur, attempted to withdraw Rs 5,000 from an Axis Bank ATM. Though the machine failed to dispense any cash, the amount was debited from his Central Bank of India account. Despite immediate complaints to the bank and subsequent follow-ups with customer care and the head office, the complainant said his concern was not addressed.

Axis Bank instead claimed the transaction was successful and closed the case in October 2024, labelling the complainant’s claim as “false.” The customer then approached the commission seeking a refund and compensation, citing mental and physical harassment.

The matter was heard ex parte by commission president Satish Sapre and member Milind Kedar after Axis Bank failed to appear before the commission despite being served legal notice, PTI said.

The commission remarked that although the customer had made repeated complaints, the bank did not produce “any evidence of having conducted a proper inquiry or CCTV verification,” PTI reported. It further noted that the bank did not file any evidence even after receiving the commission’s notice, and found that the bank had failed to provide a fair hearing through the ombudsman process.
“From the documents on record, it is clear that the bank did not take any of the complainant’s complaints seriously,” the commission held, according to PTI. The commission opined that the non-receipt of money despite the amount being deducted from the customer’s account “amounts to deficiency in service” on the bank’s part, adding that the institution was directed to refund the amount and pay Rs 10,000 to the complainant as compensation for mental and physical harassment.

(With inputs from PTI)