Gujarat Man’s 9-Year Battle Over ATM Glitch Ends With Rs 3.28 Lakh Blow To Bank Of Baroda

The Surat consumer court has directed Bank of Baroda to pay Rs 3.28 lakh as compensation to a customer after it failed for nearly nine years to reverse a failed ATM withdrawal of Rs 10,000. The ruling came after the bank could not produce any concrete proof to establish that the transaction had been successful.

The Surat Consumer Disputes Redressal Commission (additional bench) ordered the bank to pay Rs 3,28,800 as compensation, along with the original Rs 10,000 that was debited from the customer’s account.

It dates back to February 18, 2017, when the customer attempted to withdraw Rs 10,000 from an SBI ATM in Udhna. While the amount was debited from his account, the cash was never dispensed. Despite RBI guidelines mandating reversal within five days, the amount remained stuck.

The customer promptly filed a written complaint at the BoB Dumbhal branch on February 21 and followed it up with multiple emails between March 10 and May 23. When there was still no resolution, he sought CCTV footage as proof of the transaction and even filed an RTI with SBI on April 21, 2017. He approached the consumer forum on December 20, 2017, seeking a refund, compensation, and interest. Both BoB and SBI were named in the case, though SBI failed to appear in court.

BoB attempted to shift responsibility, arguing that since the transaction occurred at an SBI ATM, it was not liable. The bank claimed it had requested CCTV footage from SBI twice but received no response. It further maintained that, based on SBI’s records, the transaction was successful and denied any wrongdoing.

However, the court firmly rejected this defence. It observed that BoB "failed to address the issue even after a written complaint and legal notice" and ruled that the bank could not hide behind SBI’s inaction. Emphasising accountability, the commission stated that "the customer has nothing to do with it" and that it was BoB’s responsibility to prove the transaction with "strong evidence".

Citing the 2019 RBI circular on ATM transactions, the commission reiterated that banks must reverse failed withdrawals within five days or face a penalty of Rs 100 per day.

Accordingly, the court ordered BoB to pay Rs 100 per day from February 24, 2017, until the amount is refunded with 9% interest. As per the February 26, 2026 order, the delay of 3,288 days has pushed the compensation to Rs 3,28,800.

The bank has been given 30 days to comply. Any further delay could increase the payout to Rs 3,31,500, tightening the financial blow for its prolonged inaction.