What changed
Previously, banks only had to report quarterly ATM penalty details to their boards. Now, they must also report all ATM service denials—both business and technical—using a prescribed format, and forward the board-reviewed report to RBI's Department of Payment & Settlement Systems.
What it means for you
Banks face tighter scrutiny on ATM uptime and customer experience. The granular decline categories (e.g., invalid PIN, processor down) force lenders to diagnose root causes and fix systemic issues. Non-adherence can lead to monetary penalties, raising operational risk.
What you must do
- Update internal MIS to capture all ATM decline types (business and technical) per the enclosed format.
- Place a quarterly ATM denial-of-service report before the Board, including reasons and corrective actions.
- Forward the board-reviewed report to RBI's Department of Payment & Settlement Systems, Mumbai.
- Ensure compliance with Section 18 of the Payment and Settlement Systems Act, 2007 to avoid penalties.
Who it affects
All Scheduled Commercial Banks including RRBs, Urban Co-operative Banks, State Co-operative Banks, District Central Co-operative Banks
What is the new reporting requirement beyond the 2009 circular?
Banks must now also report all ATM service denials (business and technical declines) quarterly to their Board, not just penalties paid. The report must follow the prescribed format and be sent to RBI.
What happens if we don't comply with this circular?
Non-compliance attracts penalties under the Payment and Settlement Systems Act, 2007, as specified in the circular.
Which types of declines are classified as 'business' vs 'technical'?
Business declines include invalid PIN, expired card, insufficient funds, etc. Technical declines include processor down, hardware fault, timeout, etc. A full indicative list is provided in the circular.