|Banking Codes and Standards Board of India (BCSBI) was constituted on the recommendation of the committee under the Chairmanship of Shri S.S.Tarapore. The primary objective of the BCSBI is a board for hassle free service to the Common Man. The BCSBI was promoted by Reserve Bank of India and along with 11 Banks including public, private and foreign banks.BCSBI is “an independent and autonomous watch dog to monitor and ensure that the Banking Codes and Standards adopted by the banks are adhered to in true spirit while delivering their services”. The Banking codes and standards board has scripted the ‘ Code of Bank’s Commitment to Customers’ jointly with Indian Banks Association. These codes have come into effect from 1st July 2006.Each individual customer of the Bank can get a copy of the same at free of cost.
The objectives of the Code are spelt out by BCSBI as follows:
1. To promote good and fair banking practices by setting minimum standards in dealing with customers
2. To increase transparency so that customers have a better understanding of what they can reasonably expect of the services
3. To encourage market forces through competition to achieve higher operating standards
4. To promote a fair and cordial relationship between the customers and the Bank
5. To foster confidence in the banking system.
The code will apply to all products and services of the Bank. The Code dwells upon interest rates, tariff schedule, terms and conditions governing relationship between the bank and the customer, compensation of loss, privacy and confidentiality of the information relating to the customer, norms governing advertisements, marketing and sales by banks.