Axis Bank Fined for Poor Service After Failed ATM Withdrawal

Axis Bank is facing penalties after a consumer commission ruled in favour of a customer who lost money in a failed ATM transaction, highlighting the bank's deficiency in service and lack of proper investigation.

A consumer commission in Maharashtra's Nagpur has pulled up Axis Bank for "deficiency in service", directing it to provide a refund and pay Rs 10,000 as compensation to a customer who lost Rs 5,000 in a failed ATM transaction eight years ago.

The District Consumer Disputes Redressal Commission (Additional DCF), Nagpur, termed the non-receipt of cash after the amount got debited from the customer's bank account at an ATM as "a serious matter".

It is the bank's responsibility to examine such transactions and to give immediate relief to the customer, the commission asserted.

In a verdict delivered last month, the commission found that the bank didn't take the complainant's grievance "seriously" and failed to provide a fair hearing through the ombudsman process.

The failed transaction dated back to August 19, 2018, when the complainant, a resident of Nagpur, claimed he 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, the complainant said.

He alleged that his concern was not addressed despite immediate complaints to the bank and subsequent follow-ups with customer care and the head office.

The bank instead claimed that the transaction was successful and closed the case in October 2024, labelling the complainant's claim as "false", he said.

The customer then approached the commission for a refund and compensation, citing mental and physical harassment.

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

Commission's Findings and Judgement

The commission remarked that although the aggrieved customer had made repeated complaints, the bank did not produce "any evidence of having conducted a proper inquiry or CCTV verification".

"From the documents on record, it is clear that the bank did not take any of the complainant's complaints seriously," it held.

It further noted that even after receiving the commission's notice, the bank did not file any evidence.

The fact that the customer did not receive money, despite the amount being deducted from his account, "amounts to deficiency in service" on the bank's part, the commission opined, while directing the institution to refund the amount and pay Rs 10,000 to the complainant as compensation for mental and physical harassment.