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
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.