ATM Update 2026: ATMs have become an essential part of our lives today, freeing us from long bank queues. However, situations like technical glitches or sudden power outages often create fear among customers. The most concerning situation is when the ATM doesn’t dispense cash, but a message about a cash withdrawal appears on the mobile phone.
The Reserve Bank of India (RBI) has established clear and strict rules for such situations, which have been further strengthened in 2026 to protect customers’ interests. According to the Reserve Bank, in the event of any such technical glitch, the bank is responsible for returning the customer’s money within a specified timeframe.
What will happen in case of a power outage
People often think that a power outage during a transaction will cause the money to be lost. However, modern ATMs are equipped with a UPS (Power Backup), which keeps the machine running even after a power outage until the ongoing transaction is completed.
If, despite this, the funds are not withdrawn due to a technical glitch and the account is debited, under the RBI’s ‘T+5’ rule, the bank is required to refund the money within five working days of the failed transaction. According to the updated rules of 2026, if the bank fails to refund the money within this stipulated timeframe, it will be required to pay a penalty of ₹100 per day to the customer from the sixth day.
Do these things immediately if the transaction fails
Whenever such a situation arises, instead of panicking, first preserve the transaction slip, as it serves as the most important proof of your claim. If the slip does not come out, note the SMS received on your mobile and the ATM ID (which is written on the top of the machine).
You should immediately call your bank’s customer care number to lodge a complaint and obtain the transaction reference number. In most cases, banks automatically refund the money within 2 to 4 hours after technical verification, but it’s advisable to wait 24 hours as a precaution.
Where to complain if a solution isn’t found
If the bank doesn’t resolve your issue within the stipulated timeframe, you can visit your home branch and submit a written complaint. If you don’t receive a satisfactory response from the bank within 30 days, the customer has the right to approach the RBI’s Integrated Ombudsman (Banking Ombudsman).
You can file a complaint online on the RBI’s CMS portal, which uses a new, simplified interface from 2026. ATM complaints can be filed digitally even during bank holidays or festivals, so using digital banking or toll-free numbers is the best option instead of waiting for the bank to reopen.
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Vikram Singh
Author at TimesBull covering breaking news and current affairs.
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