New Delhi – Many bank customers occasionally face a scenario where their ATM account is debited, but no cash is dispensed. While alarming, Indian banking regulations clearly safeguard account holders, ensuring that deducted amounts are refunded and compensation is provided in case of delays.

Preserve Transaction Details

If an ATM fails to dispense cash, the first step is to retain all transaction details. Customers should keep debit SMS alerts, digital notifications, receipts, ATM slips, and note the exact location, date, and time of the transaction. These details are essential when filing a complaint with the bank.

Report the Issue Promptly

Customers are advised to inform their bank immediately, using mobile banking apps, internet banking portals, customer care helplines, or by visiting the nearest branch. Banking experts recommend filing complaints within 24 to 48 hours to expedite investigations and enable banks to verify transaction logs efficiently.

RBI Guidelines for Failed ATM Transactions

The Reserve Bank of India (RBI) mandates that banks must investigate failed ATM transactions and refund the full debited amount within five working days. Banks verify incidents by reviewing ATM electronic journals, cash reconciliation reports, and transaction logs to confirm whether cash was actually dispensed.

Compensation for Delays

If banks fail to refund within the stipulated timeframe, they are liable to pay compensation to customers. Currently, the penalty stands at ₹100 per day until the amount is credited back. This rule incentivizes banks to promptly resolve ATM-related complaints and prevent undue inconvenience.

Escalating Complaints

Should a bank fail to resolve the issue, customers can escalate complaints through the RBI’s online complaint management system. The regulator reviews cases and ensures compliance with banking norms, offering a structured mechanism for recourse.

Awareness in the Digital Banking Era

Experts emphasize the importance of customer awareness as digital banking and ATM usage expand. Retaining transaction proof, promptly reporting issues, and following proper complaint procedures significantly improve the likelihood of recovering debited funds without hassle.

Being informed about these safeguards ensures that customers remain protected against transaction errors while navigating India’s increasingly digital banking landscape.

New Delhi, March 15, 2026 – India’s premier investigative agency has taken decisive action in two high-profile cases, including a police bribery allegation and the arrest of a long-term bank fraud fugitive.

Police Officer Accused of ₹2 Crore Bribe

The Central Bureau of Investigation (CBI) registered a case on March 10 against Inspector Deepak Phalswal, who allegedly demanded ₹2 crore from Shubham Mishra to influence the outcome of a complaint lodged with the agency. Mishra stated that Phalswal visited his residence in Mahabali Puram, Bhati Kalan, on January 22, seeking the payment to “settle” the complaint.

Following the case registration, Phalswal was arrested by the CBI’s Anti-Corruption Branch and presented before Special Judge Jyoti Kler at the Rouse Avenue Courts. The officer had been in custody for two days before the court hearing. Phalswal filed a bail application while prosecutors opposed it, with the court scheduling further arguments.

In a related development, a head constable from Sultanpuri Police Station was also arrested for allegedly accepting a ₹20,000 bribe during a police raid. Two other officers are under investigation to determine if additional personnel were involved in the scheme.

Arrest of a Long-Term Bank Fraud Fugitive

Separately, the CBI announced the arrest of Harpal Singh Ahuja, a proclaimed offender in a bank fraud case dating back more than 20 years. Ahuja had evaded law enforcement for approximately 11 years, frequently relocating between Mumbai and Faridabad to avoid capture.

Authorities traced Ahuja to Mumbai and arrested him on March 12 in the Kalyan area. He was produced before the Special Judge of the CBI Court in Ghaziabad and remanded to judicial custody. Officials said the arrest represents a major breakthrough in a long-standing investigation that had remained unresolved while the accused was absconding.

These actions underscore the CBI’s ongoing efforts to combat corruption within law enforcement and resolve longstanding financial crimes.

Thirteen police officers, including one inspector and twelve sub-inspectors, have been suspended following a Special Investigation Team (SIT) inquiry that uncovered serious irregularities in road accident probes linked to insurance claims. The investigation revealed that some officers deliberately manipulated case records, allegedly causing financial losses to insurance companies by altering critical details in accident reports.

The suspended officers are stationed across three districts: Gonda, Bahraich, and Shravasti. Two officers each from Gonda and Shravasti, and nine from Bahraich, were included in the suspension list. The disciplinary action comes after the SIT determined that investigators conducted flawed and misleading inquiries in certain motor accident cases to secure favorable outcomes for insurance claims.

Sources indicated that some investigators went as far as substituting the actual vehicles involved in accidents with others and naming pre-selected individuals as accused, rather than those actually responsible. These manipulations, according to the SIT, were intended to influence insurance payouts, raising serious concerns about the integrity of the investigative process.

The matter surfaced after a complaint by ICICI Lombard General Insurance nearly a year ago. The complaint flagged discrepancies in multiple accident-related cases, alleging that police case diaries were being tailored to produce specific results, adversely affecting insurance assessments and compensation.

Following the complaint, senior police authorities formed a Special Investigation Team to re-examine accident cases across the three districts. The SIT reviewed charge sheets, vehicle inspection reports, witness statements, and site documentation. In several cases, the team found that earlier investigations had misidentified vehicles and named incorrect accused individuals. Fresh investigations corrected these records, and revised findings were submitted to the courts.

Disciplinary action against the officers was initiated after they were found prima facie guilty of professional misconduct and procedural violations. Sources suggest that the irregularities may reflect a coordinated pattern rather than isolated lapses. Investigators are now probing whether intermediaries or external agents influenced the manipulation of investigations.

The case has prompted broader scrutiny of accident investigations, particularly those involving insurance claims, where financial incentives can compromise the process. Police authorities have indicated that further departmental inquiries and potential criminal proceedings could follow, along with recovery actions if financial losses are formally established.

Officials emphasized that the case highlights the importance of internal oversight mechanisms, like SITs, in identifying systemic lapses and ensuring accountability. Steps are being taken to strengthen monitoring of insurance-linked accident investigations and enhance verification protocols to prevent similar incidents in the future.