It happens to almost everyone once: the ATM counts, whirrs, and then shows “Unable to dispense cash” or simply returns the card. A few seconds later an SMS says your account has been debited. The money is not lost. The Reserve Bank of India has set a fixed deadline for fixing exactly this situation.
The rule in one line
Under the RBI’s turnaround time circular (RBI/2019-20/67, in force since 15 October 2019), when your account is debited at an ATM but cash is not dispensed, the bank must reverse the amount within T+5 days. If it does not, it must pay you ₹100 for every day of delay, credited to your account without you having to ask.
What “T+5” means, with dates
“T” is the day of the transaction. Suppose the failed withdrawal happened on 3 October:
- The reversal deadline is 8 October (3 + 5).
- If the money is still missing on 9 October, ₹100 compensation starts from that day.
- If the reversal finally arrives on 12 October, you are owed ₹100 for 9, 10 and 11 October: ₹300 on top of the refund.
The rule applies whether you used your own bank’s ATM or another bank’s, and to micro-ATMs used by banking correspondents. The responsibility always sits with the bank that issued your card.
What to do at the machine (first two minutes)
- Do not try again straight away at the same machine for the same amount. A second failure creates a second debit to chase.
- Take the receipt if one prints, or photograph the error on the screen.
- Note the ATM ID (on the sticker near the screen or on the receipt), the time to the minute, and the address.
- Keep the debit SMS. It carries a reference number the bank uses to trace the transaction.
How the bank checks your claim
Every ATM writes an electronic journal: a log of each step, including how many notes were picked, presented and retracted. When you complain, the bank pulls this log and, if needed, the cash balance from when the machine was next counted. A clean “notes not presented” entry usually means a quick reversal. If the log is unclear, the bank may also check CCTV footage, which is why the exact time matters.
When to complain, and where
Many reversals happen on their own within a day or two. If the money is not back after 24 to 48 hours, raise a complaint with your own bank (the card issuer), even if the ATM belonged to another bank or to a white-label operator. Use the bank’s helpline, app or branch, and ask for a complaint reference number.
The ₹100-a-day compensation is meant to be paid automatically. If the reversal comes late and no compensation follows, cite circular RBI/2019-20/67 in a written follow-up. If the bank still does not resolve it, the escalation route is covered in our guide to complaints and the RBI Ombudsman.
Related cases with shorter deadlines
The same circular sets T+1 for failed card-to-card transfers, IMPS and UPI person-to-person payments where the sender is debited but the receiver is not credited. Those are not ATM problems, but people often confuse them with one.
Check the ATMs near you before travelling: ATMs in Kochi · ATMs in Kozhikode · ATMs in Coimbatore
Common questions
The ATM belonged to another bank. Do I still complain to my own bank?
Yes. Your bank issued the card and debited your account, so it handles the complaint and gets the details from the ATM owner.
What if only part of the amount came out?
It is treated the same way. The bank checks the machine log and reverses the part that was not dispensed, within the same deadline.
Does a failed withdrawal use up one of my free transactions?
It should not, because the transaction did not complete. If it was counted and charged, ask for the fee to be reversed with the refund.
Last checked: October 2026, against RBI circular RBI/2019-20/67 on harmonisation of turnaround time and customer compensation.
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