What is BCSBI - All you need to know!
May 28, 2021
BCSBI stands for The Banking Codes and Standards Board of India (BCSBI), an independent industry watchdog that works in consumer rights in the banking sector. BCSBI was set up to ensure that the common person as a consumer of financial services from the banking industry is in no way in a disadvantageous position and gets what he/she has been promised.
ia (BCSBI), an independent industry watchdog that works in consumer rights in the banking sector. BCSBI was set up to ensure that the common person as a consumer of financial services from the banking industry is in no way in a disadvantageous position and gets what he/she has been promised.
– A Brief History
The former deputy general of RBI, S S Tarapore, introduced the concept of setting up a committee that can help the banking customers enjoy better financial services. And so, BCSBI was registered as a separate body under the Societies Registration Act, 1860 in 2006.
It functions as an independent and autonomous body. Membership of BCSBI is voluntary and open to scheduled banks. Initially, the membership of BCSBI was open to scheduled commercial banks and has now been extended to include Regional Rural Banks, select Urban Co-operative Banks, and Small Finance Banks also.
The following are the main objectives of the BCSBI:
- To create and provide detailed Codes and Standards for the banks to follow, focusing on fair practice and quality customer service.
- To increase transparency between the banks and the customers.
- To nurture the relationship between the banks and the customers.
- To research and analyze the Codes and Standards followed by the banks around the world.
- To keep a close watch on the banks across the nation to ensure they comply with the Codes and Standards provided to them.
How does BCSBI Perform its Duties?
The BCSBI takes many steps to ensure its goals are met. Some of these include:
- Studying the complaints received from the customers, as well as the actions taken by the Ombudsman.
- Organizing a conference with the Principal Code Compliance Officers of the banks yearly.
- Visiting various bank branches in person to ensure that the recommended Codes are being followed.
Some of the basic codes that BCSBI wants the banks to follow include:
- Setting up a help desk at all branches to address the customer queries.
- Displaying the name and address of the banking ombudsman particular to each bank branch.
- Having a Code Compliance Officer to ensure the rightful implementation of the Codes and Standards.
- Displaying the name and contact number of the Code Compliance Officer at each branch.
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