What is BCSBI ?
It 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.
Definition:- In these Rules, unless the context requires otherwise:
- “Act” means the Societies Registration Act, 1860 in its application to the State of Maharashtra.
- “Chairman” means the Chairman of the Governing Council referred to in Rule 6 or 7.
- “Chief Executive Officer” means the Chief Executive Officer of the Society referred to in Rule 13, or as the as may be, in Rule 14
- “Memorandum” means the Memorandum of Association of the Society.
- “Representative” means an officer of the member bank, nominated by that bank to represent it.
- “Society” means ”THE BANKING CODES AND STANDARDS BOARD OF INDIA“
About BCSBI :-
Among the existing institutional structures, the Scheme of Banking Ombudsman, which has been functioning for quite some time, does not look into systemic issues with a view to enforcing a prescribed quality of service. Ideally, such a function should be performed by a Self Regulatory Organisation but in view of the existing framework of the banking sector in India, it was felt that an independent, autonomous Board will be best suited for the function. Therefore, Dr. Y.V. Reddy, Governor, Reserve Bank of India, in his Monetary Policy Statement (April 2005) announced setting up of the banking Codes and standards Board of India in order to ensure that comprehensive code of conduct for fair treatment of customers was evolved and adhered to.
The Banking Codes and Standards Board of India has been registered as a separate society under the Societies Registration Act, 1860. Therefore, it would function as an independent and autonomous body.
The Banking Codes and Standards Board of India is not a Department of the RBI. Reserve Bank has agreed to lend it financial support for a limited period. It is an independent banking industry watch dog to ensure that the consumer of banking services get what they are promised by the banks.
To ensure that the Board really functions as an autonomous and independent watchdog of the Banking industry, the Reserve Bank also decided to extend financial support to the Board by way of meeting its full expenses for the first five years. This was to enable the Board to reach its economic critical mass that will make it truly independent in its functioning and take a view on any bank without its existence coming under any threat. On its part, RBI would derive supervisory comfort in case of banks which are members of the Board. In substance, the Board has been set up to ensure that common man as a consumer of financial services from the banking Industry is in a no way at a disadvantageous position and really gets what it has been promised.