:::...The Banking Codes and Standards Board of India

BCSBI (UNDER DISSOLUTION)

Notice for the information of the customers of the banks

The Banking Codes and Standards Board of India (BCSB) was set up in February 2006 to evolve Codes and Standards for fair treatment of customers by banks. Banks which are members of BCSBI voluntarily adopt the Codes for implementation.

BCSBI has in collaboration with the Indian Banks' Association (IBA),Reserve Bank of India(RBI) and member banks, evolved two codes - Code of Bank's Commitment to Customers and the Code of Bank's Commitment to Micro and Small Enterprises - which set minimum standards of banking practices for member banks to follow when they are dealing with individual customers and Micro and Small Enterprises. The central objective of the Codes is promoting good banking practices, setting minimum standards, increasing transparency, achieving higher operating standards and above all, promoting a cordial banker-customer relationship which would foster confidence of the common man in the banking system. The Codes lay great emphasis on transparency and providing full information to the customer before a product or service is sold to him. The Codes are not only commitments of banks to their customers but also in a sense a Charter of Rights for the common person.

However, some time back RBI had informed that the issues pertaining to setting up of The Banking Codes and Standards Board of India (BCSBI), its role and functions over a period of time, its utility in the present context, etc., were discussed in detail at RBI and since institutionally RBI has been able to undertake the activities identified for BCSBI by itself, BCSBI has been directed to initiate the process for its dissolution. Accordingly, BCSBI had stopped activities as per its Objects and were taking steps for its dissolution for the last few months.

The Banking Codes and Standards Board of India was registered as a Society under the Societies Registration Act, 1860 and approved as a trust under the Maharashtra Public Trusts Act, 1950. For the purpose of dissolution, BCSBI had to follow the procedure laid down in the Societies Registration Act, according to which member banks physically present have to pass a resolution to that effect. Accordingly, the member banks in a Special General Body Meeting passed resolutions on 28th September 2021 to approve the dissolution of BCSBI. Accordingly, the necessary documents are now being submitted to the statutory authorities for the dissolution/de-registration of BCSBI.

Therefore, BCSBI is now under dissolution and has stopped its operations. Customers are requested to contact their banks for redressal of any grievance and in case of non-redressal of complaints, approach Banking Ombudsman Offices by following the procedure.

November 23, 2021