RBI Mandates Full Disclosure of ATM Complaints and Bars Profit Transfer
Current · Source: Reserve Bank of India · RBI/2013-14/218 · issued 03 Sep 2013 · ~2 min read
Quick answerBanks must now include all ATM-related complaints—even those involving other banks—in their customer complaint disclosures. Additionally, unresolved ATM credit balances from technical failures cannot be transferred to profit and loss accounts.
The rule, in the simplest words
Banks must tell the public about ALL complaints from their own ATM card users, even if the problem happened at another bank's ATM.
If a bank knows which other bank's ATM caused the complaint, it can add a note explaining that, but it must still count the complaint in the total.
Banks cannot move leftover money from ATM machine errors (like cash not given out) into their profit account until the problem is fixed or the customer claims the money.
How it plays out — a real example
A forex & trade-finance officer in Indore notices that a customer's complaint about a failed cash withdrawal at a different bank's ATM was not included in the bank's public report. She updates the system to ensure all such complaints are counted, and she stops the finance team from moving the stuck ATM money into profit, keeping it as a liability until the customer is paid.
What changed
RBI clarified that banks must disclose all ATM complaints related to cards they issued, including those from other bank ATMs, in their financial results. Previously, such complaints were often excluded. Also, RBI prohibited banks from transferring ATM credit balances from unresolved technical errors to profit and loss accounts, treating them as unclaimed liabilities.
What it means for you
Banks need to update their complaint reporting systems to capture all ATM disputes, especially those involving other banks' ATMs. This increases transparency but may raise reported complaint numbers. The ban on transferring unresolved ATM balances to profit means banks must hold these as liabilities, impacting profit recognition and requiring better reconciliation processes.
What you must do
Include all ATM complaints from your cardholders in the disclosure with financial results, even if the ATM belonged to another bank.
Add a note attributing complaints to the acquiring bank where possible, without reducing the total count.
Stop transferring ATM credit balances from technical failures to profit and loss accounts until reconciliation or customer claim is resolved.
Review and update internal policies for handling and reporting ATM-related customer complaints and unresolved balances.
Who it affects
All commercial banks (excluding RRBs), Card-issuing banks, Acquiring banks (ATM operators), Bank compliance and reporting teams
❓ Common questions
Do we need to disclose ATM complaints from other banks' ATMs?
Yes, all complaints related to ATM cards issued by your bank must be disclosed, regardless of which bank owned the ATM. If you can identify the acquiring bank, add a note but include the complaint in the total.
Can we transfer ATM credit balances from technical errors to profit?
No. Such balances from failed retractions or sensor errors must be treated as unclaimed liabilities until reconciled or claimed by the customer. Transferring them to profit is not allowed.
📜 Read the original circular — full text as issued by RBI
RBI/2013-14/218
DBOD.BP.BC.No. 49/21.04.018/2013-14 September 3, 2013
The Chairman and Managing Director/Chief Executive Officer of
all Commercial Banks
(Excluding Regional Rural Banks)
Dear Sir
Disclosure of customer complaints and unreconciled balances on account of ATM transactions
Please refer to our circular DBOD.No.Leg BC.60/09.07.005/2006-07 dated February 22, 2007 on Analysis and Disclosure- Disclosure of Complaints / Unimplemented Awards of Banking Ombudsmen along with Financial Results, in terms of which banks are advised to disclose brief details on the customer complaints along with their financial results.
2. It is observed that banks have not been including in the disclosures as above, the customer complaints pertaining to Automated Teller Machines (ATM) transactions when another bank is involved in the transaction. It has been specified in our FAQs on Payment Systems-ATMs that in case of a failed ATM transaction at other bank ATMs, the customer should lodge a complaint with the card issuing bank even if the transaction was carried out at another bank’s ATM. It is clarified that banks should include all complaints pertaining to ATM cards issued by them in the disclosures specified in the circular dated February 22, 2007 referred to above. Where the card issuing bank can specifically attribute ATM related customer complaints to the acquiring bank, the same may be clarified by way of a note after including the same in the total number of complaints received.
3. In a related issue, it has come to our notice that some banks are transferring credit balances pending reconciliation representing various cases of excess cash in ATMs on account of failures in retraction of cash, sensor failure and other technical /hardware errors, to their profit and loss account. Banks are advised that pending reconciliation or matching claim by customers, such ATM related credit balances represent unclaimed balances and should not be transferred to profit and loss account.
Yours faithfully,
(Rajesh Verma)
Chief General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2013-14/218 · issued 03 Sep 2013. The plain-English explanation above is BankPulse’s own independent summary.
Stop transferring ATM credit balances from technical failures to profit and loss accounts until reconciliation or customer claim is resolved.
📜 Compliance
Include all ATM complaints from your cardholders in the disclosure with financial results, even if the ATM belonged to another bank.
Add a note attributing complaints to the acquiring bank where possible, without reducing the total count.
Review and update internal policies for handling and reporting ATM-related customer complaints and unresolved balances.
Grouped from the action items above — a single circular may involve more than one team.
Worked example & action-note template
Example: if you are a Compliance officer at a bank this circular applies to (All commercial banks (excluding RRBs), Card-issuing banks, Acquiring banks (ATM operators), Bank compliance and reporting teams), your first concrete step on “RBI Mandates Full Disclosure of ATM Complaints and Bars Profit Transfer” is: “Include all ATM complaints from your cardholders in the disclosure with financial results, even if the ATM belonged to another bank.” (RBI issued this 03 Sep 2013).
Circular: RBI/2013-14/218 -- RBI Mandates Full Disclosure of ATM Complaints and Bars Profit Transfer
Issued: 03 Sep 2013
Action required: Include all ATM complaints from your cardholders in the disclosure with financial results, even if the ATM belonged to another bank.
Action required: Add a note attributing complaints to the acquiring bank where possible, without reducing the total count.
Action required: Stop transferring ATM credit balances from technical failures to profit and loss accounts until reconciliation or customer claim is resolved.
Action required: Review and update internal policies for handling and reporting ATM-related customer complaints and unresolved balances.
Owner: ____________ Target date: ____________
Board/committee approval needed? Y / N
Evidence filed in compliance register on: ____________
Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.
💬 Banker Discussion
Discuss this circular with fellow bankers — reply, upvote what helps, report what doesn’t belong. Be professional; no client data. Views are the commenter’s own, not BankPulse’s.
BankPulse Compliance Evidence Pack — generated 03 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly). Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=8367&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
Help us keep this accurate
Found an inaccuracy or have an improvement? Tell us. Every report is reviewed by our team before any change is made — nothing goes live unverified.
Public beta — plain-English informational summaries. Always verify against the official RBI source (circular number cited on every page) before making compliance, credit, treasury, audit, or operational decisions. · Join our WhatsApp channel ↗
BANKPULSE · FREE DAILY BRIEF
Get RBI updates for your role
Every important RBI update, decoded in plain English — for your career, exams & financial awareness.
We collect only your email, name and role, used solely to send your brief — never sold or shared. Withdraw anytime via the unsubscribe link in any email. Independent platform, not affiliated with the RBI. Information, not legal advice.
REPORT AN ERROR · BETA
Spotted an error? Earn 500 BankPulse Credits
Help us stay accurate. If your correction is verified true and approved by our founder, you earn 500 BankPulse Credits — redeemable when the platform monetises.
Reviewed by a human before any credit is awarded. We never change the site from crowd input without verification.
WANT A NEW FEATURE · BETA
What would make BankPulse more useful for you?
Tell us what to build next — a tool, a data view, a role page, anything. We read every suggestion.
Thank you — your ideas directly shape what we build.