Legal Question in Employment Law in India

23.12.2014

Dear Sir / Madam,

The Banking Codes and Standards Board of India (BCSBI) was formed in accordance with the proposal contained in the Annual Policy Statement for the year 2005-06, The Banking Codes and Standards Board of India (BCSBI) was set up on 18th February 2006 as a collaborative effort of RBI and Banks, on the lines of a similar set up in UK to oversee the "Banking Code", a voluntary Code, evolved by the British Bankers Association (BBA), which is adopted by all banks in UK. The proposal for setting up the BCSBI was based on the recommendation made by the Committee on Procedures and Performance Audit on Public Services (Tarapore Committee), in its Report No.6 dealing with Benchmarking, ISO Certification and Performance Audit.

A Governing Council of the BCSBI has been constituted to look after its financial affairs and managerial policies. The Governing Council would consist of members drawn from different disciplines such as banking, law and accountancy. The following is the composition of the first Governing Council of the BCSBI appointed by the Reserve Bank of India:

1. Ms. K.J. Udeshi, Former Deputy Governor, RBI - Chairperson

2. Mr. M.G. Bhide, Former Chairman & Managing Director, Bank of India - Member

3. Mr. M.M. Chitale, Chartered Accountant - Member

4. Mr. S. Divakara, Director General of Forum of Free Enterprise Mumbai & Jt. Hon. Secretary, All India Bank Depositors Association - Member

5. Mr. R.K. Krishna Kumar, Vice Chairman, Indian Hotels Company Ltd. - Member

6. Shri S.R. Kolarkar, Legal Adviser, Reserve Bank of India - Member

7. Mr. V. Baijal, Chief General Manager, Reserve Bank of India - Chief Executive Officer & Member

The tenure of the Governing Council would be five years and the appointment of the Governing Council after five years would be with the concurrence of the RBI. The RBI will fully meet the budgetary requirements of the BCSBI for the first five years while the banks would, during this period, contribute to building its corpus to enable it to eventually become a self-sustaining organisation.

The BCSBI would plan, evolve, prepare, develop, promote and publish voluntary comprehensive codes and standards for banks for providing fair treatment to their customers.

The BCSBI would function as an independent and autonomous watch dog to monitor and to ensure that the banking codes and standards voluntarily adopted by banks are adhered to, in true spirit by banks in delivering the services, as promised, to their customers. The Board will not handle individual cases of complaints and grievances (all such cases will continue to be handled by Banking Ombudsman).

Regards,