BANKING CODES AND STANDARDS BOARD OF INDIA (BCSBI) :

The Banking Codes and Standards Board of India has been registered as a separate society under the Societies Registration Act, 1860. It functions as an independent and autonomous body to monitor and assess the compliance with codes and minimum standards of service to individual customers to which the banks agree to. The Code is a voluntary initiative by a bank and is also a unilateral commitment by the bank to its individual customers to deal with them in a transparent and fair manner in its day to day operations. RBI derives supervisory comfort in case of banks which are members of the Board. Members of public can contact the BCSBI either on its website or at its postal address. Website address is www.bcsbi.org.in.

The main function of the Board is to ensure adherence to the “Code of Bank’s Commitment to Customers”. The Code is voluntary and sets minimum standards of banking practices for banks to follow when they are dealing with individual customers in their day-to-day operations. The Code is not only meant to provide protection to the individual customers but is also expected to generate awareness in the common man about his rights as a consumer of banking services.

Banks are required to register themselves with BCSBI as members and have the Code adopted by their respective boards. Thereafter, the banks will have to enter into a covenant with BCSBI, binding them to monitoring by BSCBI as far as implementation of the code is concerned.

Any Scheduled Commercial Bank is eligible to become member of BCSBI. The Code represents each member bank’s commitment to minimum standards of service to individual customers in relation to products and services offered by the bank, e.g.

– Deposit accounts

– Safe deposit lockers

– Settlement of accounts of deceased account holders

– Foreign exchange services

– Remittances within India

– Loans and advances and guarantees

– Credit cards

– Internet banking

– In these areas the Code, inter alia, dwells upon

– Interest rates

– Tariff schedule

– Terms and conditions governing relationship between the bank and the customer

– Compensation for loss, if any, to the customer due the acts of omission or commission on the part of the bank

– Privacy and confidentiality of the information relating to the customer

– Norms governing advertisements, marketing and sales by banks

Every Member bank is required to:

– Have a Help desk/Helpline at the branch

– Have a Code Compliance officer at each Controlling Office above the level of the branch.

– Display at each branch name and contact number of Code Compliance Officer.

– Display Name and address of the Banking Ombudsman

In case a customer is not provided services as promised in the Code, he can first approach the help desk of the branch/bank. In case the issue is not resolved, the Code Compliance Officer of the bank may be approached by the complainant. In case the issue is still not resolved to the satisfaction of the customer he should take it up with the Banking Ombudsman .