BANKING CODES & STANDARD BOARD OF INDIA (BCSBI)
Essential for All Upcoming Bank Exams
Banking Codes and Standards Board of India (BCSBI) was set up on the lines of a similar set up in UK to oversee the Fair Practice Code evolved by the Bankers Based on the recommendation of Committee on Procedures and Performance Audit on Public Services (Tarapore Committee).
The main objectives of the BCSBI is to plan, evolve, develop, prepare, promote and standards for banks for providing fair treatment to their customers. It shall carry out its activities on the basis of contract entered into with individual banks (the process of registration).
- A Governing Council of the BCSBI looks after its financial affairs and managerial policies. The occupancy of the Council is 5 years.
- With the concurrence of the RBI the appointment of the Council after 5 years.
The board was set up as a Society, under the Societies Registration Act, 1860. Commercial Banks, Urban Coop Banks and RRB s are its members. RBI was funding the entire cost of operations of the Board for the initiate 5 years. Thereafter the Board has been levying an affiliation fee annually on all registered members.
Banks Code for Customer Service:
Banking Codes and Standards Board of India on 3rd July, 2006 released the Banks’ Code for Customer Service which is a voluntary Code. When banks are dealing with individual customers the code sets minimum standards of banking practices for banks to follow. It provides protection to the customers and explains hoe banks are expected to deal with the customers for their day-to-day operations.
Objectives of the Code:
- The code has been developed with a view to –
- Encourage market forces, through competition, to achieve higher operation standards;
- Promote good and fair banking practices by setting minimum standards in dealing with the customers;
- Forster confidence in the banking system;
- Increase transparency so that the customer can have a better understanding of what they can reasonably expect of the services;
- Promote a fair and cordial relationship between the customer and their bank;
Application of the Code:
- Indian currency notes exchange facility;
- Current or Savings account, recurring deposit, term deposits, PPF accounts and all other deposit accounts;
- Loan and Overdrafts;
- Payment services such as payment orders, pension, remittances by way if Demand Drafts and wire transfer;
- Demat accounts, Governments bonds and equity;
- Foreign exchange services including money changing;
- Collection of cheques, safe deposit locker facility and safe custody services;
- Third party insurance and investment products sold through our branches;
- Banking service related Government transactions;