Deceived by ATM or Bank?

I write this blog to share my experience on what may not be known to many users of ATM during transactions in India.

Technology has enabled us to find means to satisfy the exploding requirements of a Billion plus customers whose aspirations are mind boggling. Cell phones and connectivity have enabled  the lesser endowed sections of our people. Rail reservations is one such segment which has made what was impossible into a drawing room experience. Ask those of us who had stood in queues form mid night just to get a ticket to travel a few months hence..

When ATM s arrived on the scene, it was a quantum jump and a relief  not to visit the nearest bank with a paper cheque.  Those who doubted the capability of an average Indian to use the machine must now be  eating  their hats. Understandably the machine evolved over a period of time and became increasingly sophisticated. It now places fake currencies in a bin and is expected to bin excess cash due to erroneous transactions.

Here are two specific examples of what may happen to you. The first concerns a highly reputed private bank. When my wife tried to withdraw Rs 20000 she ended up receiving a very small amount. The entire sum was however, debited by her bank as indicated by a message by SMS. In this case the machine was the property of the same bank. There is a process to be followed by the customer which ought to be displayed at every ATM location. But you guessed it -no such notice or a check list exists. The parent branch is expected to deal with this complaint which depending on the time and day may mean waiting for the next working day just to register your complaint. In this case after numerous attempts to follow up, the intervention at a very high level ensured that my wife was reimbursed.  That was just fortunate.

The second case occurred when I attempted to draw Rs 10000 from the ATM of another well known private  bank using the debit card of the largest public centre bank. I received only Rs 2000. I immediately sought the assistance of the security guard who produce a register for me to make the entry or a statement. I also called up the toll free number of the private bank requesting them to register my complaint. The security guard assured me that this is not an isolated incident,  that there were three cameras recording the event and that I should merely take it up with my public sector bank.

Here is what followed. I wrote an official complaint with all the experience of my service life so that no detail was omitted. I was assured by the Chief Manager that the rest would follow when the complaint was taken up with the Private sector bank. Promptly I was assigned a complaint number on SMS. Days later, I received a SMS telling me that "the competent authority has rejected my complaint and that I should contact my branch for details".

I had heard enough of competent authority in my service days but how can a customer be told of a competent authority.? This goes against the grain of a banking system which is meant to service a customer. Despite all the progress made in banking and internet banking in particular of which I am very proud, this sentence told me that our banks are not ready to serve its customer.The government red tape was in full view.

I therefore challenged the competent authority with some facts. If they accept that the entire sum was indeed delivered to me how come an amount of Rs 1500 has been credited to me by the bank. Hence one of the banks was less than truthful in their stand. I was asked to submit another complaint to which I pointed out that my first complaint was complete in all respect and hence despite the threatening tone of the competent authority I stood by my complaint. A few hours later, I received another SMS with a fresh complaint number. Needless to say within a few hours I received yet another rejection by the competent authority.

Another visit to the bank. This time the Chief Manager asked me whether I could visit the private bank responsible for the ATM machine and get his views. Although it sounded incorrect, I agreed so that the matter could be pursued with vigour.

Now the turn of the "efficient "'private sector bank. I barged into the office of the Manager who was located in a small cubicle. He was much younger than the Chief Manager, quite commensurate with the size of his little branch. He was polite and positive as expected from a private bank but soon began to vacillate. He called in his colleague who promptly told him what I already knew. That I should not have been directed to approach this bank as I was not their customer and that it should be dealt with between the relevant sections of the two banks. After this very enlightening intercourse,the young manager told me that as a favour he would make enquiries from his headquarters on whether the outsourced company which handles the ATM has reported excess cash in the ATM. He took my contact numbers and promised to give me a call in a day. Yes, you guessed it, no calls even after a week.

Before departing the private sector bank, I sought his permission to give him some unsolicited advice. He showed remarkable receptive abilities but was not quite prepared for what I was about to say. I told him that I used the ATM only because it carries the name of his famous bank and is located in his premises.Now that he had admitted that he has no control over what happens with the machine as its operation is outsourced, he should seriously consider removing the name of his bank so prominently displayed on the machine, so that innocent users like me are not conned by the name of the bank. It was as if I had slapped him. I gave him a parting smile while he stammered and he stuttered pathetically.

Back to the champions of my public sector bank. The see saw sms battles rage even after a month. The competent authority has won uptil now. I was advised that the customer is entitled to Rs 100  per day if the dispute is not resolved. These are reserve bank orders. Now you know why the competent authority so swiftly disposes off complaints.

I am now going to the only option for justice-the ombudsman.The two banks involved are SBI and Kotak Mahindra,the latter owns the machine.

What can you do? Let us share more such experiences which have gone unreported so far. Can you imagine the plight of a poor customer who can barely afford to lose his hard earned money, while the elephants clash.

Share this blog with all your friends. Let us unite against this tyranny.