What changed
RBI now requires RRBs to place a detailed complaint analysis before their Board or Customer Service Committee, identifying frequent issues and systemic gaps. They must also disclose pending and resolved complaints, plus unimplemented Banking Ombudsman awards, alongside financial results. Unreconciled ATM credit balances from failed transactions cannot be transferred to profit and loss account.
What it means for you
RRBs must strengthen grievance redressal by systematically analyzing complaints and reporting them transparently. This increases accountability and helps identify recurring ATM issues. The ban on transferring unreconciled ATM balances to P&L protects customer funds and ensures these remain as liabilities until claimed or reconciled.
What you must do
- Set up a process to analyze complaints quarterly for frequent issues, sources, and systemic deficiencies, and present to Board/Customer Service Committee.
- Disclose complaint statistics (pending, received, redressed) and Banking Ombudsman award implementation status with annual financial results.
- Ensure ATM-related credit balances from failed transactions are not transferred to profit and loss account; keep them as unclaimed balances.
- Publish the detailed complaint statement and analysis on your website at the end of each financial year.
- Include all ATM card complaints in disclosures, even if transaction was at another bank's ATM; note if attributable to acquiring bank.
Who it affects
All Regional Rural Banks (RRBs), Customer service and compliance teams at RRBs, Board members and Customer Service Committees of RRBs
What specific complaint data must RRBs disclose with financial results?
RRBs must disclose number of complaints pending at year start, received during year, redressed, and pending at year end. Also, Banking Ombudsman awards unimplemented at start, passed, implemented, and unimplemented at year end.
Can RRBs transfer unreconciled ATM credit balances to profit and loss account?
No. RBI explicitly prohibits transferring such balances (from failed ATM transactions like retraction failures or sensor errors) to P&L. They must be treated as unclaimed balances pending reconciliation or customer claim.
How should RRBs handle complaints about ATM transactions at other banks' ATMs?
Customers must lodge complaints with the card-issuing RRB, even if the ATM belonged to another bank. RRBs must include all such complaints in their disclosures. If the issue can be attributed to the acquiring bank, a note may clarify this.