{"id":4280,"date":"2015-04-27T06:51:43","date_gmt":"2015-04-27T06:51:43","guid":{"rendered":"http:\/\/indiaforensic.com\/certifications\/?p=4280"},"modified":"2015-04-27T06:51:43","modified_gmt":"2015-04-27T06:51:43","slug":"critical-analysis-of-bcsbi","status":"publish","type":"post","link":"https:\/\/indiaforensic.com\/certifications\/critical-analysis-of-bcsbi\/","title":{"rendered":"A critical analysis of Banking Codes and Standards (BCSBI)"},"content":{"rendered":"

The first thought a common Indian gets seeing BCSBI words are? Is this some new subsidiary or part of the SBI group? Sadly, this tells the story. There is little or perhaps no awareness on BCBSI in India, especially amongst customers for whose benefit it is formed.<\/p>\n

BCSBI: THE GUARDIAN ANGEL<\/h2>\n

BCSBI stands for Banking Codes & Standards Board of India. It is an autonomous body under the patronage of RBI formed to bring uniformity in systemic issues of banking relating to products and services. Its basic objective is \u201cfair\u201d treatment of customers. <\/em><\/strong><\/p>\n

History:<\/h3>\n

In November 2003, the RBI constituted a committee on procedures and performance audit of Public services. Although the scheme of BO: Banking Ombudsman ( \u092c\u0901\u0915 \u0932\u094b\u0915\u092a\u093e\u0932) was already functional systemic issues relating to quality of service were not being taken care of. Hence in the Monetary Policy statement of 2005, announcement of BCSBI formation was made.<\/p>\n

Simple understanding:<\/h3>\n

For banking in India, RBI was-is-always WILL be the regulator. Hence in the banking scenario, RBI is like the Principal. It decides who to admit sets the rules and safeguards the general public against the act of its pupils. Banking Ombudsman is like the Strict Teacher appointed by RBI, whose activity is to receive complaints and punish. BCSBI is the mild Teacher. It\u2019s a philosophical teacher who will give directions, set standards and expect everyone to follow.<\/p>\n

Form of organization<\/h3>\n

Interestingly, BCSBI although is the \u201cbrain child\u201d of RBI, it is not the direct subsidiary of RBI (Like Banking Ombudsman scheme or the currency printer BRBNMPL: Bhartiya Reserve Bank Note Mudran Private Limited). It is formed as a \u201cSociety\u201d under the Societies Registration Act, 1860; the form of organization preferred by NGO\u2019s (Check the article on NGO laws<\/a><\/em><\/strong>).<\/p>\n

International Scenario<\/h3>\n

BCSBI is a unique body in itself, since there is no organization like BCSBI in the world. Yes, in countries like USA and other European nations, have a Financial Consumer Protection type law, i.e statute and no codes.<\/p>\n

Membership<\/h3>\n

The membership is exclusive to Scheduled Banks. It is on voluntary<\/em><\/strong> basis. The categories of membership being:<\/p>\n