Consumer commission orders Union Bank to refund Rs 10,000 and pay Rs 5,000 compensation
A Kerala consumer commission ruled that Union Bank of India must return Rs 10,000 and compensate a customer Rs 5,000 after an ATM took the money without dispensing cash.
On July 28, 2022, P.K. Sathian attempted to withdraw Rs 10,000 from a Union Bank ATM in Kozhikode, but the machine retained the amount and dispensed nothing. After filing written complaints with two bank branches, he approached the Kerala district consumer commission, which heard the case on July 27.
The commission, chaired by President Priya S and Member V Balakrishnan, noted the bank’s failure to provide CCTV footage that could confirm the withdrawal. Relying solely on the ATM’s electronic journal, the bank could not prove the cash was handed over. The commission concluded the bank’s handling constituted a deficiency in service and an unfair trade practice, directing it to refund the Rs 10,000 and pay Rs 5,000 in compensation within 30 days, with a 9% annual interest penalty for non-compliance.
Why it matters
It highlights consumer rights enforcement against banks failing to resolve ATM disputes promptly.
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