Gujarat Man Receives Over Rs 3 Lakh Compensation After 9 Years For Rs 10,000 ATM Error
Surat consumer commission orders Bank of Baroda to pay Rs 3.28 lakh compensation and refund Rs 10,000 with interest after a nine-year ATM withdrawal dispute.
Published : March 20, 2026 at 7:40 PM IST
Surat: A consumer court in Gujarat has directed Bank of Baroda (BoB) to pay Rs 3.28 lakh in compensation to a customer after the bank failed to reverse an unsuccessful ATM withdrawal of Rs 10,000 nine years ago.
The case dates back to February 18, 2017, when the customer, named Jiteshbai, tried to withdraw Rs 10,000 from an SBI ATM in the Udhna area in Surat, but the machine failed to dispense cash. Moments later, he was shocked to receive an SMS on his registered mobile number saying that the amount was debited from his account.
According to Reserve Bank of India (RBI) rules, such failed transactions must be reversed within five days. However, despite repeated requests, the bank didn’t comply with the guidelines, as the customer did not receive the refund within the stipulated period.
Jiteshbai even sought CCTV footage of the ATM, which was not provided. On April 21, 2017, he filed a Right to Information (RTI) request with SBI seeking CCTV footage of the ATM transaction. Despite these efforts, the bank neither reversed the amount nor provided any proof that the transaction had been successful.
The inaction prompted him to submit a written complaint at the BoB Dumbhal branch on February 21, 2017, and he followed up with multiple emails. When no satisfactory response was received, he approached the Surat Consumer Disputes Redressal Commission (CDRC) on December 20, 2017, demanding a refund of the Rs 10,000 along with compensation and interest. Both Bank of Baroda and State Bank of India were named as respondents in the case.
During the proceedings, Bank of Baroda argued that since the ATM belonged to SBI, it could not be held responsible. It maintained that the transaction appeared “successful” in the records shared by the acquiring bank and denied any deficiency in service. The bank also stated it had written twice to SBI requesting CCTV footage, but received no response. SBI, meanwhile, did not appear before the forum.
However, the consumer commission rejected these arguments, stating that the responsibility to provide proof of the transaction lay with the customer’s bank.
The commission held that there had been a total delay of 3,288 days, leading to a compensation of Rs 328,800. In addition, the bank has been directed to return the original Rs 10,000 with 9 per cent interest.
The court has ordered Bank of Baroda to complete the payment within 30 days. If the bank delays payment until the final day, the total delay will increase to 3,315 days, raising the compensation to Rs 331,500.
