Introduction
Sometimes when you withdraw cash from an ATM, the machine does not dispense money but the amount still get deducted from your bank account. This situation is called a failed ATM transaction. In this guide, we explain the refund timeline, RBI rules, and what steps you should take immediately. In this guide, we will explain the failed ATM transaction refund timeline, RBI rules, and what customers should do in 2026.
What is a Failed ATM Transaction?
A failed ATM transaction happens when the ATM does not give cash due to technical error or network issue, but your account gets debited.
RBI Refund Rules & Timeline (2026)
As per RBI guidelines, banks must resolve failed ATM transactions within a fixed timeline. Usually, refund is processed within 5 working days. If delay happens beyond permitted period, customer may be eligible for compensation per day.
How Many Days Does ATM Refund Take?
• Same bank ATM: 1–5 working days
• Other bank ATM: 5–7 working days
• Complex disputes: Up to 10 working days
Step-by-Step Complaint Process
1. Keep transaction ID or ATM slip.
2. Contact bank customer care immediately.
3. Register complaint through mobile banking.
4. Escalate to Banking Ombudsman if not resolved.
Conclusion
Failed ATM transactions are stressful but mostly temporary. Report the issue quickly and track your complaint until refund is credited.
