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Lesson ID 991014
Version 2/15052018

Banking Codes & Standard Board of India

Background:
BCSBI was set up in 2006 to ensure that the common person as a consumer of financial services
from the banking Industry is in no way at a disadvantageous position and really gets what he/she has been
promised. It has been set up to evolve a comprehensive Code of Conduct for fair treatment to customers and
to monitor its adherence.

BCSBI has 133 members as on January 31, 2018 and membership is open to Scheduled Commercial Banks
(Public sector banks, private sector banks, foreign banks, Regional Rural Banks, Urban Co-Operative Banks,
small finance banks and payment banks) and is on voluntary basis.

BCSBI has evolved 2 codes:

i. Code of Bank‟s Commitment to Customers (Last revised in January 2018)
ii. Code of Bank‟s Commitment to Micro and Small Enterprises (Last revised in August 2015)

These Codes are revised every 3 to 4 years to make them contemporaneous in the fast changing banking
scenario.

Purpose:
i. These are Codes of Customers Rights which set minimum standards of banking practices which
member banks have to follow.
ii. They provide protection to customers and explain how banks have to deal with customers in their day-
to-day operations.

Objective:
The BCSBI Codes have been developed to:
i. Promote good and fair banking practices by setting minimum standards in our dealings with customer.
ii. Increase transparency so that customer can have a better understanding of what customer can
reasonably expect from bank.
iii. Encourage market forces, through competition, to achieve higher operating standards.
iv. Promote a fair and cordial relationship between customer and bank.
v. Foster confidence in the banking system
vi. Promote safe and fair customer dealing in case of banking in a digitized environment
vii. Increase awareness of customers and to enhance customer protection

Significance of the code:

i. A positive and voluntary commitment by Banks towards their customers.
ii. Do not supersede regulatory instructions.
iii. Codes are complementary instructions.
iv. Banks may set higher standards than standards prescribed in the Codes

Our key commitments to customer for empowering customer:

1. Right to Fair Treatment
2. Right to Transparency, fair and Honest Dealing
3. Right to Suitability
4. Right to Privacy
5. Right to Grievance Redressal & Compensation
Applications of the Codes:
i. Code of Bank’s Commitment to Customers:
This Code applies to all the products and services pertaining to retail banking
ii. Code of Bank’s Commitment to Micro and Small Enterprises:
This Code applies to all the products and services pertaining to Micro and Small Enterprises.
 Whether they are provided by our branch or agents acting on our behalf, whether across the counter,
over the phone, by post, through interactive electronic devices, on the internet or by any other
method.
Right to Fair Treatment:
i. Promote good and fair banking practices by setting minimum standards in all dealings with customer
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ii. Treat customer fairly and not discriminate against customer on grounds such as age, religion, caste,
economic status, literacy, physical ability, etc.
iii. Train bank staff attending to customer, adequately and appropriately.
iv. Ensure that staff members attend to customer and customer business promptly and courteously.

Right to Transparency & Honest Dealing:

i. Provide customer with clear information about our products and services, terms and conditions and
interest rate/service charges in simple and easily understandable languages- Hindi, English or the
appropriate local language.
ii. Most important Terms and Conditions (MITC) of the product/service shall be clearly brought to
customer notice while offering the product.
iii. Provide information on interest rates, service charges, fees, etc. on website/ notice board/ folder
available in branch/ inform directly to customer.
iv. Display tariff schedule on website/ display its availability in the branch on Notice Board.
v. Give a month‟s notice to customer before making changes in terms and conditions.
vi. Ensure that all marketing and promotional material is clear and not misleading.
vii. Display on Notice Board that following policies are available in the branch in a folder/ display the
policies on website:
a. Deposits
b. Cheque collection
c. Grievance Redressal
d. Compensation
e. Collection of Dues and Security Repossession
f. Charter of Customer Rights
g. Customer Protection Policy (including protection from cyber fraud)
h. Limited Liability in respect of unauthorized electronic banking transactions
i. Facilities for senior citizens and differently abled persons.

Right to Suitability:
i. Offer products as per customer needs and based on an assessment of customer financial
circumstances and understanding.
ii. When customer avails of a banking service or product from bank, bank will not compel customer to
purchase any third party product as a quid pro quo.

Right to Privacy:
i. Not reveal customer personal information to anyone except in following cases:
 If bank have to give information required by law or banking regulator.
 Sharing information with credit information companies about loans, credit card, etc.
 If there is a duty towards the public to reveal the information.
 If customer authorise bank to reveal the information.
 Bank has to protect our interest through disclosure.
ii. Bank shall not use customer information for marketing purpose, unless customer have specifically
authorized bank to do so
iii. In case bank collect information from customer other than KYC requirement, bank will explain the
purpose for which bank are collecting the same

Right to Grievance Redressal and Compensation:

1. Bank will tell customer :
i. How to lodge a complaint
ii. Where a complaint can be made
iii. To whom a complaint can be made
iv. When to expect a reply
v. Whom to approach for redressal
2. What to do if customer are not satisfied about the outcome:
i. Bank will give customer acknowledgement for the complaints lodged with bank through any channel.
ii. Place Grievance Redressal Policy on website and also in the folder in the branch.
iii. Display name, address and contact details of Grievance redressal authorities at all service delivery
locations.
iv. If not satisfied or complaint not redressed within 30 days of receipt of complaint, customer are free to
approach Banking Ombudsman in Whose jurisdiction customer branch falls.
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3. What to do if customer are not satisfied about the outcome :

i. Banking Ombudsman Scheme to be displayed on Bank‟s website and a copy to be kept in folder in
the branch.
ii. Banking Ombudsman‟s name, address and contact details to be displayed on Notice Board in each
branch.

Code of Bank’s Commitment to Customers-Products covered:

i. Deposit Accounts
ii. Cheque Collection Services
iii. Cash Transactions
iv. Safe Deposit Lockers
v. Forex transactions
vi. Remittance of funds
vii. Lending
viii. Guarantees
ix. Cards
x. Insurance /third party products
xi. Digital and electronic banking

Deposit accounts-Important Code provisions:

i. Availability of BSBDA Account without any minimum balance requirement, with minimum common
facilities and certain terms and conditions.
ii. Availability of nomination facility, wherever permissible, option of indicating nominee‟s name in
passbooks/account statements/FDRs.
iii. Providing information about deposit insurance cover in the passbooks.
iv. Providing sufficient details of all transactions in the passbooks.
v. Providing Most Important Terms and Conditions (MITC) of the deposit which customer want to avail.
vi. Option of changing/closing the account within 14 days of opening of savings/current account.
vii. To close/ transfer current/savings account within 3 working days from date of receipt of request.
viii. Give 30 days‟ notice if minimum balance to be maintained is revised in current/ savings account.
ix. The charges for not maintaining minimum balance in account will be proportionate to the shortfall
observed.
x. Charges for different services related to deposit account will be included in Tariff Schedule.
xi. Customer care number will be provided in passbooks/ monthly statement of account.
xii. Bank will upgrade customer account only after taking customer consent in writing/authenticated
electronic means.
xiii. Bank will downgrade customer account only after giving 30 days‟ notice.
xiv. Give customer a 3 months‟ notice if customer account is classified as inoperative/dormant.
xv. Not charge for activation of dormant account.
xvi. Customer can drop customer cheques for collection in the drop box or hand over at the counter
against acknowledgement.
xvii. Bank will pay customer compensation as per our Cheque Collection/ Compensation policy for any
delay in collection of instruments.
xviii. Bank will inform customer immediately by SMS / e-mail when a cheque deposited by customer for
collection is returned unpaid.
xix. Return a cheque unpaid / dishonoured along with a duly signed return memo indicating the date of
return as also the reason for return / refusal of payment within 24 hours.
xx. Accept and dispense cash at any of our branches under core banking, subject to any restrictions on
type of transaction or charges, if any, applicable to such transactions.
xxi. Exchange soiled / mutilated notes and / or small coins and issue good quality, clean bank notes /
coins at all our branches up to a prescribed limit per day. Extend this facility, within prescribed limits to
walk-in customers too.
xxii. Act on mandates given by customer for direct debits [Under National Electronic Clearing Service
(NECS)] / National Automated Clearing house (NACH) and other standing instructions.

Term Deposits:
i. In case bank don‟t receive instructions for disposal of deposit at maturity (at the time of deposit or at
maturity), renew the deposit, excluding deposits like tax savings deposits, etc., for the same period as
the matured deposit at the prevailing rate of interest
ii. Bank will accept 15 G/15 H forms as applicable from customer and acknowledge the same
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iii. Bank will issue the requisite TDS certificate, wherever applicable, within stipulated period
iv. Settlement of claims in respect of deceased account holders:
a. In case of accounts with survivor/nominee clause, payment to the survivor(s) / nominee of the
deceased depositors will be made without insisting on production of succession certificate, letter of
administration or probate, etc. or obtaining any bond of indemnity or surety from the survivor(s) /
nominee, irrespective of the amount standing to the credit of the deceased account holder.
b. Accounts without the survivor / nominee clause, bank will adopt a simplified procedure for repayment
to the legal heir(s) of the depositor. Bank will fix a minimum threshold limit (which will be made known
on demand at our branch) up to which claims in respect of the deceased depositor(s) will be settled
without insisting on production of any documents other than a letter of indemnity.
v. Time limit for settlement of claims:
Within a period not exceeding 15 days from the date of receipt of the claim subject to the
production of proof of death of the depositor and suitable identification of the claimant(s), to
the bank‟s satisfaction
vi. Pension accounts:
a. Bank will inform customer that Nomination facility is available for Savings Bank Account opened for
credit of pension.
b. Bank will inform customer that nomination exercised by customer under Arrears of Pension
(Nomination) Rules for receipt of arrears of pension will not be valid for the purpose of deposit
accounts held by customer with bank. For this a separate nomination is necessary in terms of the
Banking Companies (Nomination) Rules, 1985 in case customer desire to avail of nomination facility.

Safe Deposit Locker:

i. Bank will give customer the complete details of the rules and the procedures applicable for allotment
of the safe deposit lockers and also safe deposit of valuables, in case bank offers the service.
ii. Bank will allot lockers without linking it to placement of fixed deposits. However, to ensure prompt
payment of locker rent, bank may at the time of allotment, obtain a Fixed Deposit which would cover 3
years‟ rent and the charges for breaking open the locker in case of an eventuality.
iii. Bank will send reminders for the overdue rent of customer safe deposit locker at the last recorded
address and /or e-mail. Bank can restrict operations of the locker till the rent due is paid as per the
locker agreement. Bank will include this clause in the agreement.
iv. Bank will advise customer that hiring of a safe deposit locker creates relation of a lessor and lessee
and the lessee has the right for free access to safe deposit locker in a safe and secure environment.

Remittance within India:

If customer want to remit money within India, bank will inform customer how to effect it and
i. Disclose the details of all charges including commission that customer will have to pay for the service
as per the Tariff Schedule.
ii. Send customer an SMS / e-mail informing customer of the fate / status of the remittance made by
customer through Mobile Banking / NEFT / RTGS.
iii. Make available on our website updated contact details of our Customer Facilitation Centres to handle
customer queries / complaints regarding NEFT / RTGS transactions / digital banking.
iv. In case of any delay bank will compensate customer for the delay and any loss / additional expense
incurred by customer as per our Compensation Policy.
v. Bank will extend remittance facilities within prescribed limits to walk- in customers too.

Lending:
Bank will:
i. Give customer the Most Important Terms and Conditions (MITC) governing the loan / credit facility
customer have sought to avail.
ii. Give customer information explaining the key features of our loan and credit card products including
applicable fees and charges while sourcing the application and at the time of communicating the
sanction of the loan / credit card.
iii. Advise customer about the information / documentation bank need from customer to enable customer
to apply.
iv. In case bank offer / approve a credit facility over the telephone, bank will credit customer account with
the amount only after receiving customer acceptance in writing or through any other mode such as
SMS / e-mail and where customer consent is obtained through authenticated electronic means, after
necessary validation.
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v. Not offer any unsolicited pre-approved credit facility in any form, including enhancement of credit card
limit and top up of personal loan limits, etc.
vi. Provide customer with an acknowledgement of customer loan application form indicating the
timeframe within which the application will be processed.
vii. Communicate reasons for rejection in writing through letter/e-mail if bank are not able to sanction the
loan.
viii. Provide customer the sanction letter detailing particulars of amount sanctioned and the terms and
conditions.
ix. At customer request, supply authenticated copies of all the loan documents executed by customer at
our cost along with a copy each of all enclosures quoted in the loan document as part of disbursement
welcome kit. However, reasonable charges will be levied for additional authenticated copies as per
our tariff.
x. Give written receipt for all documents to title taken as security / collateral for any loan.
xi. Bank will endeavour to send customer a communication through letter / e-mail or SMS about the
status of customer account before it becomes a Non Performing Asset (NPA).
xii. Bank will give customer notice, sufficiently in advance, if bank decide to recall / accelerate payment or
performance under the agreement or seek additional securities.
xiii. Return to customer all the securities / documents / title deeds to mortgaged property within 15 working
days of the repayment of all dues agreed to or contracted and report to CERSAI about satisfaction of
our charge. In the event of not able to do so within stipulated time schedule, bank will compensate
customer for the same.
xiv. In the event of our losing customer securities / documents / title deeds, compensate customer for the
loss and extend all assistance to customer for obtaining duplicate documents etc. at our cost.
xv. No levy foreclosure charges / pre-payment penalties on all floating rate term loans sanctioned to
customer (in customer individual capacity) irrespective of whether paid from own funds or takeover by
other Banks.
xvi. In case bank offer customer a One Time Settlement (OTS) for repayment of dues, bank will explain
to customer the details of the offer. If the dues are settled under OTS, bank will explain to customer
the implications of such settlement on customer credit history maintained by the Credit Information
Companies (CICs).
xvii. In case bank securitises (sell) customer loans / dues on customer card to another entity, bank will
advise customer the name and contact details of such entity along with the amount of customer loan /
dues transferred to them. In the normal course, loans / credit card dues, which are Non Performing
Assets (NPAs) are considered for sale to Asset Reconstruction Company (ARC) through
assignments.
xviii. Endeavour to assist customer in case customer have a grievance against the entity to which customer
loan / dues have been transferred by bank.

ATM or Debit and Credit Cards:

i. Bank will offer customer an ATM / Debit Card if it is normally issued with the type of account customer
has opted for.
ii. Bank will send a service guide / member booklet giving detailed terms and conditions, losses on
customer account that customer may be liable if customer card is lost / misused and other relevant
information with respect to usage of customer card along with customer first card.
iii. Bank will advise customer of the current transaction limits that apply at POS counters, ATMs and
forex transactions.
iv. Bank will advise customer of the fees and charges that apply to customer card.
v. Bank will inform customer of the procedure customer must follow to report the loss, theft or
unauthorized use of customer card or PIN.
vi. Bank will provide multiple channels for enabling customer to report an unauthorized transaction on 24
x 7 basis.
vii. Bank will reimburse amounts wrongly debited in failed ATM transactions within the prescribed time
limit. For any delay beyond the prescribed time limit, bank will pay compensation as prescribed
provided the claim is lodged with bank within 30 days of the transaction.

Credit Cards:

1. When customer apply for a credit card, bank will explain the relevant terms and conditions such as
fees, interest and other charges, billing and payment, method of computation of over dues, financial
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implications of paying only „the minimum amount due‟, renewal and termination procedures, and any
other information that customer may require to operate the card.
2. Bank will disclose the Most Important Terms and Conditions (MITC) in a font size of ten as below:
i. During marketing-MITCs* on “Fees and Charges”
ii. At application / Welcome kit-All MITCs, including, inter-alia, customer liability in case of third party
fraud or where customer have not contributed to the fraud
iii. On Credit card Billing-MITCs on Fees & Charges, drawing limits
iv. On an on-going basis, any change of the terms and conditions

* In MITC, bank would specifically explain that the “free credit period” is lost if any balance of the previous
month‟s bill is outstanding.
3. Bank will advise customer the time, bank will take for conveying our decision on customer application
for credit card
4. Bank will have right to place a lien and right to set off on all monies belonging to customer, being the
card holder, standing to customer credit, in the same capacity, in any account whatsoever with the
Bank or in the possession or custody of the Bank if customer are in default to bank in payment of our
dues. bank will send customer intimation to this effect by e-mail on customer registered e-mail id /
registered mobile number or letter within three days from placing lien / hold on customer deposit
account
5. Bank will send customer monthly credit card statements every month by post/courier/e-mail (if
customer opt for that mode)
 If bank make any change in schedule of charges, bank will give customer notice of at least one month
 In case bank treat the reversal of charges levied in customer account as SETTLED, bank will inform
Credit Information Companies (CICs) about the settlement and inform customer of the same being
reported to CICs.

Third Party Products:

i. Bank will inform customer if bank, as agents of any investment / asset management company or
insurance company, offer any type of investment products including mutual funds or insurance
products. bank are responsible for any person using our premises for selling or marketing third party
products on our behalf.
ii. When customer avail a banking service or product from bank, bank will not compel customer to
purchase / subscribe to any third party product as a quid pro quo.
iii. In the case of securities provided by customer for loans availed from bank, bank will not insist on
customer obtaining insurance cover from any particular provider / same organisation.
iv. Bank will provide detailed terms and conditions of the product which is being offered to customer.
v. Bank will sell a product to customer only if bank believe it is suitable and appropriate for customer.
vi. Bank will obtain the requisite application and documentation for a product offered only after customer
have consented to subscribe / avail of the product, in writing or through authenticated electronic
means / after necessary validation.

Collection of Dues:
i. Whenever bank gives loans, bank will explain to customer the repayment schedule viz. amount,
tenure and periodicity of repayment. However, if customers do not adhere to the repayment schedule,
a defined process in accordance with the laws of the land will be followed for recovery of dues.
ii. Bank will ensure that our Recovery Agents are properly trained to handle their responsibilities with
care and sensitivity. Bank will also ensure that they do not exceed their brief.
iii. Our collection policy is built on courtesy, fair treatment and persuasion. Bank believes in fostering
customer confidence and long- term relationship.
iv. Bank will write to customer when bank initiate recovery proceedings against customer and will inform
customer of the name of the recovery agency / agent, to whom customer case has been assigned as
also their address and telephone numbers.
v. Bank will provide details of the recovery agency firms / companies engaged by bank on our website.
vi. Our staff or any person authorized to represent bank in collection of dues and / or security
repossession will identify himself / herself and produce the authority letter issued by bank and upon
request show customer his / her identity card issued by the bank or under authority of the bank.
vii. Bank will follow collection of dues and security repossession policy in consonance with the law. The
policy will be displayed on our website and a copy of the same will be made available at our branch
for perusal.
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Financial Inclusion:
i. Bank will offer BSBD Accounts, BSBD-Small Account and Jan Dhan account without the requirement
of any Minimum balance, with minimum common facilities.
ii. BSBD-Small Account/ Jan Dhan account to be opened on the basis of simplified KYC norms.
iii. Value added services, if desired at a low cost.
iv. Where bank don‟t have a branch, bank will endeavor to have Business Correspondent/ Business
facilitator and bank will be responsible for all their acts of omission and commission.
v. Bank will explain the various credit plans available and the information required for processing
customer application, MITC available to such loans, the security requirement for the same.
vi. No collateral security on loans up to Rs.1 lakh for Govt. sponsored schemes and education loan up to
Rs. 4 lakh.
vii. Bank will educate and guide the account holders the manner of operating bank accounts and
undertake financial literacy activities to educate customers.

Senior citizens and differently Abled Persons:

i. Make our best efforts towards making banking easy and convenient for senior citizens, differently
abled and illiterate persons.
ii. Physical access to the branches and ATMs convenient.
iii. To provide personalised services for banking transactions and redressal of grievances.
iv. Endeavour to provide seating arrangements in the banking hall.
v. Endeavour to provide services through a single window mechanism.
vi. Permit withdrawal of funds up to limits set by customer, by persons authorized by customer on
production of authorization and passbook.
vii. Endeavour to provide “doorstep‟‟ banking.
viii. Bank will issue a pension slip to customer containing details of pension credited to customer account
ix. Bank will accept Life Certificate at any branch of our bank.
x. Bank will guide relatives / parents of disabled persons on how to appoint a legal guardian, under the
National Trust Act, 1999, for disabled persons with autism, cerebral palsy, mental retardation and
multiple disabilities who can then open and operate accounts for such persons.
xi. All banking facilities are offered to visually challenge without any discrimination.

Electronic & Digital Banking:

1. Bank will take appropriate measures to provide safe and secure Internet and Mobile Banking.
2. Bank will ensure that our systems and technology are safe and secure and review and update them
periodically.
a. Bank will implement robust and dynamic fraud prevention and detection mechanisms to
mitigate risks and protect customers from liabilities arising from unauthorized transactions.
b. Bank will undertake various initiatives to educate customer on Internet / Mobile Banking
security and on prevention from payment related frauds, by way of:
i. Displaying relevant information on our website
ii. Displaying information at customer touch points like ATMs and branches.
iii. Periodic educational e-mails
c. When customers have access to Internet / Mobile Banking services, bank will also inform
customer of the applicable terms and conditions relating to such services. All Internet / Mobile
Banking related services and associated charges, if any, will be displayed on our website and
made available to customer.

Unauthorised electronic transactions:

1. Electronic Banking transactions:
a. Internet banking, mobile banking, card not present prepaid instruments.
b. Credit card/Debit card transactions at POS, ATM
2. Limited Liability in respect of unauthorized electronic banking transactions.
a. Customer will be entitled for zero liability where the unauthorized transaction occurs in
the following events:
i. Contributory fraud / negligence / deficiency on our part
ii. Third party breach where the deficiency lies elsewhere in the system and customer
notify bank within 3 working days of receiving the communication from bank regarding
the unauthorized transaction.
b. Customer shall be liable for the loss occurring due to unauthorized transactions in the
following cases:
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i. In cases where the loss is due to customer negligence such as where customer
have shared the payment credentials, customer will bear the entire loss until
customer report the unauthorized transaction to bank. Any loss occurring after the
reporting of the unauthorized transaction shall be borne by bank.
ii. In cases where the responsibility for the unauthorized electronic banking
transaction lies neither with bank nor customer, but lies elsewhere in the system
and when there is a delay (of 4 to 7 working days after receiving the
communication from bank) on customer part in notifying bank of such a
transaction, customer per transaction liability shall be limited to that transaction
value or the amount whichever is lower as mentioned in RBI guidelines issued from
time to time on the subject.
iii. Further, if the delay in reporting by customer is beyond 7 working days,
customer liability shall be determined as per our Board approved policy
which will be available in public domain / our website. Bank shall provide the details
of our policy in regard to customer liability formulated in pursuance of the RBI
directions on the subject at the time of opening the accounts. Bank will inform all the
customers individually also about our policy on the subject.

How to report unauthorised electronic transactions:

There are many ways to report as:
i. Use the Reply Option in the SMS/email message to report, if available.
ii. Use our interactive website to report.
iii. Use Phone banking/toll free helpline.
iv. By a letter to Home branch.

Reversal Timeline for zero liability/ Limited liability:

 On being notified by customer, bank shall credit (shadow reversal) the amount involved in the
unauthorized electronic transaction to customer account within 10 working days from the date of such
notification by customer (without waiting for settlement of insurance claim, if any). The credit shall be
value dated to be as of the date of the unauthorized transaction
 Further, bank will ensure that:
i. Customer complaint is resolved and liability, if any, established within such time, as may be
specified in our Board approved policy, but not exceeding 90 days from the date of receipt of
the complaint and customer will be compensated as per RBI guidelines on the subject.
ii. Where bank are unable to resolve the complaint or determine customer liability, if any, within
90 days, the compensation as per RBI guidelines will be paid; and
iii. In case of debit card / bank account, customer will not suffer loss of interest, and in case of
credit card, customers do not bear any additional burden of interest.
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Code of Bank’s Commitment to Micro and Small Enterprises (MSE Code)

MSE Code aims to give a positive thrust to the MSE sector by providing easy access to efficient and
appropriate banking services.

Key Features – Lending:

1. Simple, easy to understand, loan application form along with checklist of documents to be furnished
by customer.
2. At the time of making available the application form, provide information about the interest rates
applicable (along with annualised ROI), fees/charges, if any, payable for processing, pre-payment
options and charges, if any, and any other matter such as CGTMSE guarantee.
3. Give customer Most important Terms and Conditions (MITC) governing the loan/credit facility to
customer have sought to avail.
4. Acknowledge the receipt of application indicating the timeframe for disposal of applications.
5. Dispose of customer application for a credit limit or enhancement in credit limit
i. Up to Rs. 5 lakh: Within 2 weeks
ii. Rs. 5 lakh- Rs. 25 lakh: Within 3 weeks
iii. Above Rs. 25 lakh: Within 6 weeks
6. No processing fee for loans upto Rs.5 lakh.
7. Collateral free loans up to Rs.10 lakh.
8. Assessment of credit requirements based on business plan, etc.
9. Seek customer consent to cover facilities up to Rs.200 lakh under CGTMSE scheme.
10. Not insist on any deposit as „quid pro quo‟ for sanctioning credit facility.
11. Supply, at our cost, authenticated copies of all the loan documents executed by borrower, with a copy
each of all enclosures quoted in the loan document and the list thereof.
12. Convey in writing the reasons for not acceding to customer request for a loan or credit facility.
13. Follow a rating system, the parameters of which will be shared with customer.
14. Disbursal of loan sanctioned within 2 working days from date of compliance with all terms and
conditions of sanction.
15. Allow pre-payment of Floating rate loans without pre-payment/foreclosure charges.
16. Allow pre-payment of fixed rate loans up to Rs. 50 lakh without pre-payment/foreclosure charges.
17. Convey our consent or otherwise within 2 weeks of receipt of a request for transfer of the borrowal
account, either from customer or from the bank / financial institution that proposes to take over the
account.
18. Release all securities immediately on repayment of loan and in any case within 15 days of the
repayment of all dues agreed to or contracted.
19. If any right to set off is to be exercised for any other claim, bank will give due notice with full
particulars about the other claims and retain the securities / documents/title to mortgaged property till
the relevant claim is settled / paid.
20. In addition to providing periodical statements for operating accounts, provide customer with an annual
statement of account of customer term loans / demand loans.
21. If borrowal account is continuously irregular and shows signs of becoming a Non-performing Asset
[NPA], bank will endeavor to send customer timely alerts on transaction related, other related critical
parameters through letter, E-mail, SMS including the status of customer. account.
22. Policy relating to lending to Micro and Small Enterprises and Rehabilitation on our website and also
make it available at the branch. Bank will provide its copy at a nominal price.

References given for further study:

HO Cir Date Subject

15456 17.01.2018 Banking Codes and Standards Board of India
Revised Codes – Bank‟s Commitment to customers January 2018
13986 03.11.2015 IMPLEMENTATION OF CODE OF BANK‟S COMMITMENT
TO MICRO AND SMALL ENTERPRISES (MSEs)