The Udaipur District Consumer Commission in Rajasthan has held the State Bank of India (SBI) liable for deficiency in service after a man alleged that Rs 10,000 was debited from his account, but the ATM dispensed only Rs 1,000. The commission directed SBI to refund Rs 9,000 to the customer.A bench of president Suman Gaur and Manish Parmar also awarded Rs 7,000 as compensation and legal costs. “SBI, while showing negligence in the matter, shifted the responsibility onto the ATM agency; however, no necessary action was taken to credit the additionally deducted amount back into the complainant’s account, which fully establishes the deficiency in service rendered by SBI to the complainant,” the commission said on September 24.Also Read | SBI ‘fails to process’ accident insurance claim linked to debit card, widow secures Rs 2 lakhThe order said that the commission disagreed with the bank’s argument that, if there were a fault in the transaction, only the ATM service provider could investigate the matter and provide an explanation. “The complainant was a customer of SBI and, in the event of any untoward incident, he would naturally approach SBI with his complaint,” it observed.Rs 1,000 received, Rs 10,000 debit shown in accountThe case concerns a consumer dispute involving excess deduction of money from a bank account. The complainant alleged that an additional amount of Rs 9,000 was debited from the account on March 10, 2017, and sought relief before the commission.The complainant, whose wife needed money for medical treatment, alleged that he used an ATM operated by another bank to withdraw Rs 10,000. However, the machine allegedly dispensed only Rs 1,000, while the full Rs 10,000 was debited from his account, resulting in an excess deduction of Rs 9,000.He lodged an online complaint with SBI within three hours of the transaction and then submitted a written complaint. Despite repeated correspondence between SBI and the ATM agency, the CCTV footage from the ATM could not be obtained. The complainant then approached the banking ombudsman, which rejected his complaint on October 16, 2017, directing him to seek relief before another forum.SBI disputed the allegations, maintaining that the ATM transaction was for Rs 10,000 and that the amount had been transferred. The ATM agency also denied liability. The complainant then approached the commission, seeking a refund of the disputed amount, interest, and compensation for the alleged deficiency in service.Story continues below this adSBI cannot shift responsibility to agency: OrderThe commission observed that the SBI, which maintained the complainant’s savings account and had issued his ATM card, could not evade responsibility by shifting the blame to the ATM agency, whose ATM was used for the transaction.The commission noted that the complainant had withdrawn only Rs 1,000 from the ATM on March 10, 2017, but Rs 10,000 was debited from his account. It also found that the complainant had promptly reported the excess deduction and that SBI had sought CCTV footage from the ATM agency to investigate the transaction.The commission further observed, “SBI had failed to take the necessary steps to credit the additional amount back to the complainant’s account and had instead shifted responsibility to the ATM agency. This amounted to a deficiency in service.TakeawayThe judgment reinforces banks’ responsibility to address unauthorised or excess ATM deductions and provide timely redressal to customers. It clarifies that banks cannot evade accountability by shifting responsibility to ATM operators, highlighting the importance of effective grievance redressal and consumer protection in banking services.Story continues below this adConsumers facing similar grievances may contact the consumer helpline in their respective states (Rajasthan: 1800-180-6030) or dial the National Consumer Helpline at 1915 for assistance.Don’t miss out on these stories:SBI failed to inform retired scientist about FD maturity, ordered to pay Rs 15.35 lakh payoutInsurer rejects liver transplant-related claims over ‘alcoholism’, man wins Rs 19.2 lakhSenior citizen man clicks fake bank KYC link, loses Rs 45,000, wins Rs 55,000 compensation