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Wednesday, September 4, 2013

RBI says profit and loss accounts should exclude failed ATM transaction amounts

The Reserve Bank of India on Tuesday said failed ATM transaction amounts represent unclaimed balances and directed banks not to include them in their profit and loss accounts.

The RBI said it was brought to its notice that some banks were transferring credit balances pending reconciliation due to failed cash retraction, sensor failure and technical or hardware errors to their profit and loss accounts.

In various cases, such failed transactions represented excess cash in the ATMs, it added.

"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," RBI said in a notification.

The RBI also observed that bank disclosures did not include customer complaints pertaining to Automated Teller Machines (ATM) transactions when another bank is involved in the transaction.

As per existing norms, banks are required to disclose brief details of customer complaints along with their financial results.

In case of a failed transaction at another bank's ATM, the customer should lodge a complaint with the card-issuing bank, it said.

"It is clarified that banks should include all complaints pertaining to ATM cards issued by them in the disclosures...," it said.

Source: EconomicTimes


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