The District Consumer Disputes Redressal Commission in Nagpur has held Axis Bank liable for “deficiency in service,” ordering the financial institution to refund a customer and pay ₹10,000 in compensation. The ruling comes eight years after a failed ATM transaction where the machine failed to dispense cash despite debiting the user’s account.
The Commission, presided over by President Satish Sapre and Member Milind Kedar, described the non-receipt of cash during a debited transaction as a “serious matter.” The bench emphasized that it is the primary responsibility of the bank to investigate such discrepancies and provide immediate relief to affected consumers.
Background of the Dispute
The case dates back to August 19, 2018. The complainant, a resident of Nagpur, attempted to withdraw ₹5,000 from an Axis Bank ATM. While the machine failed to dispense the currency, the amount was successfully debited from his account held with the Central Bank of India.
According to the complainant, he initiated immediate grievances with Axis Bank, followed by multiple communications with customer care and the bank’s head office. Despite these efforts, the bank allegedly failed to address the concern. In a move described by the complainant as a closed-door resolution, the bank eventually dismissed the claim in October 2024, labeling it “false” and maintaining that the transaction was successful.
Seeking redressal for “mental and physical harassment,” the customer subsequently approached the District Consumer Commission.
Commission’s Observations and Findings
The matter was heard ex parte as Axis Bank failed to appear before the Commission or file any evidence, despite being served a formal legal notice.
In its verdict delivered last month, the Commission observed that the bank had failed to take the customer’s grievance “seriously.” Crucially, the bench noted that the bank did not produce any evidence of a proper internal inquiry, nor did it provide CCTV verification of the transaction in question.
“From the documents on record, it is clear that the bank did not take any of the complainant’s complaints seriously,” the Commission held. It further noted that the bank’s failure to provide a fair hearing through the ombudsman process further aggravated the deficiency in service.
The Commission opined that the fact that the customer did not receive the money while his account was debited constituted a clear “deficiency in service” on the part of the bank.
The Decision
The Commission directed Axis Bank to:
- Refund the original transaction amount of ₹5,000 to the complainant.
- Pay ₹10,000 as compensation for the mental and physical harassment endured by the customer over the eight-year period.
The ruling underscores the mandatory obligation of banks to proactively verify technical failures in ATM networks and ensure that consumers are not penalized for systemic errors.
