Members of the Governing Council, the Banking Codes and ...

Members of the Governing Council, the Banking Codes and Standards Board of India and the audience

Annual Report2006-07

Banking Codes and Standards Board of India

PUBLISHED BY

K.J. UdeshiChairmanThe Banking Codes and Standards Board of IndiaC-7, 4th floor, Reserve Bank of India BuildingBandra Kurla ComplexMumbai- 400051

Phone : (022) 26578100/500/700Fax : (022) 26573719Website : www.bcsbi.org.in

TYPESET AND DESIGNED BY

Alco CorporationMumbai - 400 013

Banking Codes and Standards Board of IndiaGoverning Council

ChairmanK.J. Udeshi

Banking Codes and Standards Board of IndiaC-7, 4th floor, Reserve Bank of India Building,

Bandra Kurla Complex,Mumbai- 400051.

Members

* K.V. Subba Rao assumed charge as Chief Executive Officer w.ef. April 9, 2007.

M.G. BhideDirector, CRISIL

A/5, Bageshree, 2nd Floor,Shankar Ghanekar Road, Prabhadevi,

Mumbai – 400025.

S. DivakaraDirector - General

Forum of Free EnterprisePeninsula House, 2nd floor,

235, D. N. Road, Mumbai – 400001.

S. R. KolarkarLegal Adviser

A/6 Medhabi, 2nd Cross Lane,Swami Samarth Nagar, Andheri (W),

Mumbai – 400053.

M.M. ChitaleChartered AccountantBuilding No.4, Plot No.43,Vishnu Prasad Society, Vile Parle (E),Mumbai – 400057.

R.K. Krishna KumarDirector, Tata Sons Ltd.Bombay House,Homi Modi Street,Mumbai- 400001.

Vinay Baijal*

Chief Executive OfficerBanking Codes and Standards Board of IndiaC-7, 4th floor, Reserve Bank of India Building,Bandra-Kurla Complex, Mumbai – 400051.

ANNUAL REPORT OF THE BANKING CODES AND STANDARDSBOARD OF INDIA (BCSBI)

2006-07

Genesis of the BCSBI

1. Recognition by the banks that customer service needs to be given attention is as old asthe hills. From time to time various Committees have been set up to bring about improvedcustomer service but yet the overall quality of service falls short of minimum standards.

2. Dr. Y.V. Reddy on taking charge as Governor of the Reserve Bank of India (RBI) madeimproved customer service to the common man as his topmost priority and to thiseffect various initiatives were undertaken, one of which was to set up a Committeeon Procedures and Performance Audit on Public Services (CPPAPS) to recommendmeasures which would ensure systemic and, therefore, lasting improvements incustomer service, as also a mechanism to have an on-going assessment of thecustomer service rendered by banks. After surveying the experience of a number ofcountries, CPPAPS came to the conclusion that there should be a dedicatedinstitutional machinery which would, on an on-going basis, undertake monitoringof customer service against certain industry-wide accepted minimum standards.CPPAPS also recommended that such an institution should be a collaborative effortbetween the RBI and the IBA. The RBI accepted the recommendations of CPPAPSand the Banking Codes and Standards Board of India was set up in February 2006as an autonomous institution.

3. The Banking Codes and Standards Board of India was registered as a society under theSocieties Registration Act, 1860, on February 18, 2006. The RBI has undertaken tofully fund the BCSBI for the first five years to enable the Board to attain its critical massto become financially viable. The member banks have in turn agreed to make annualcontributions to the BCSBI which would be utilized for building up a corpus so that theincome from this corpus can be used by the Board when the RBI funding tapers off.

4. The Board functions as an independent and autonomous body to ensure that theconsumers of banking services get what they are promised by the member banks.The general superintendence, direction, and control of the affairs and the funds ofthe Board is vested with the Governing Council. The First Governing Councilconstituted by the Reserve Bank of India has seven members for a term of 3 years.The Chief Executive Officer who is also a Member of the Governing Council is bestowedwith the responsibilities of conducting day to day affairs and execution of the policyformulated by the Governing Council and exercises such powers and functionsdelegated by the Governing Council from time to time. During the reporting period,the Governing Council has held 15 meetings.

Membership

5. Scheduled commercial banks eligible for membership were approached in two stagesto join the BCSBI as members. In early May 2006, all the banks were approached to

Annual Report 2006-07Banking Codes and Standards Board of India

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apply for registration. Applying for registration by the banks was to indicate theirintention to become members of the BCSBI in due course and adopt the Code. Afterthe release of the Code on July 1, 2006, the banks were advised to apply formembership by signing the covenant formally adopting the Code for implementationin letter and in spirit.

The response of the banks has been heartening. Till March 31, 2007, 74 scheduledcommercial banks have been registered with the BCSBI, of which membershipenrolment of 67 banks has been approved by the Governing Council. Total assets ofthe banks enrolled as members constitute more than 98 per cent of the total domesticassets of the scheduled commercial banks. Names of the banks enrolled as memberswith the BCSBI as also those who have registered and declared their intent to becomemembers are furnished in Annex I(a) and Annex I(b) respectively. The BCSBI’s BankingCode Rules provide for collection of an annual membership fee as determined by theGoverning Council calculated on the basis of each member bank’s proportion to thetotal domestic assets of all member banks. The Banking Code Rules also provide thatthe Governing Council can determine the minimum to be collected by way ofmembership fee and for the year 2006-07, it was fixed at Rs.20,000 per annum. It wasalso decided that for the year 2006-07, the membership fee would be collectedproportionately, only for the period July to March. During the year 2006-07, BCSBIcollected Rs.1,56,36,000/- by way of registration and membership fee.

Investment of Funds

6. The Governing Council constituted an Investment Committee comprising Shri M.GBhide, Shri M.M. Chitale and Shri Vinay Baijal, to formulate the Investment Policyfor the BCSBI and the same was approved in November 2006. In accordance withthe Investment Policy, the funds of the BCSBI are invested in long dated Governmentof India Securities by way of subscription at the time of issue in non-competitivebids and such securities are to be held till maturity. The CEO is authorized to makesuch investments without engagement of any agent/broker.

During the year 2006-07, seven meetings of the Investment Committee were held. Atotal sum of Rs.159.80 lakh has been invested in following Government of Indiasecurities:

(i) 7.37% GoI Stock 2014 Rs.1,45,00,000.00 (face value)

(ii) 8.07% GoI Stock 2017 Rs. 14,80,000.00 (face value)

Development of the Code of Bank’s Commitment to Customers (Code)

7. The BCSBI undertook its first task of finalising the Code of Bank’s Commitment toCustomers, in close collaboration with the IBA and the RBI. As Dr Y.V. Reddy,Governor, Reserve Bank of India put it, the Code signifies the first formalcollaborative effort by the banks, the BCSBI and RBI to provide a framework for a

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minimum standard of banking services, which an individual customer canlegitimately expect.

Scope and coverage of Code

8. The Code is not merely a commitment of the bank to its customers but, in a sense,it is also a Charter of Rights of the Common Man vis-à-vis his bank. By settingminimum standards of customer service with reliability, transparency andaccountability, the Code outlines how banks should deal with their customers andwhat customers should reasonably expect from banks.

The Code covers all products and services, such as deposit accounts, remittancefacilities, government transactions, currency note exchange facility, safe depositlockers, loans, foreign exchange transactions etc. offered by banks or their DirectSales agents to individuals. It is also applicable to third party products sold throughbank branches. The Code provides for documentation of banks’ fees and servicecharges in the form of a Tariff Schedule which is required to be displayed on thebanks’ website and in each branch. The cardinal principle that runs across all theprovisions of the Code is that banks should not rely on implicit consent fromcustomers and all products and services should be sold to the customer only afterobtaining his explicit consent in writing. As a logical corollary of this principle, theCode prohibits banks from providing unsolicited credit in any form including creditcards. The Code also addresses the issue of Right to Privacy of Customers.

Member banks have also committed to have certain policy documents in place viz.,Cheque Collection Policy, Compensation Policy, Grievance Redressal Policy andSecurity Repossession Policy.

BCSBI’s objective would be to ensure, through a collaborative approach rather thanby use of penal action, that the Code is adhered to in letter and spirit and takecollaborative remedial action in rectifying the systemic deficiencies in banks.

Release of the Code

9. July 1, 2006 was a milestone in the annals of the BCSBI when Dr. Y.V. Reddy, Governor,Reserve Bank of India, formally launched the Code. Thereafter, the full text of the Codewas published by the RBI, in the public interest as a part of its Customer EducationCampaign, in leading dailies in Hindi, English and 12 regional languages across thecountry and the entire cost of publication was borne by the RBI.

Guidance Note to Members

10. With a view to forming a consensus view on the interpretation of the provisions ofthe Code, BCSBI has developed a Guidance Note for the benefit of member banks. Itis advisory in nature and reflects a general interpretation of the Code provisionsthat the BCSBI will adopt while determining industry-wide standards.

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Dissemination of the Code

11. A Public Awareness Fund has been created by the BCSBI by transferring a portion ofthe income from the investments of the BCSBI. The objective of the Fund is to achievegreater financial inclusion and encourage higher service standards in the bankingindustry by increasing public awareness. An amount of Rs.5 lakh has been set asideout of the income of the BCSBI for the period ended March 31,2007 to be accumulatedand spent for the purpose of ‘public awareness’ during the period of next 5 years,commencing from April 1,2007.

Towards achieving greater public awareness about the Code and the rights of theCommon Man vis-à-vis his bank, the Chairman and BCSBI officials have participatedin several public meetings and also interacted with the representatives of the press,radio and television.

BCSBI Website

12. The website of the BCSBI (www.bcsbi.org.in) was launched on July 1, 2006, immediatelyafter release of the Code. The website is so designed that a person visiting the site getsall relevant information with ease. The site contains the Code in regional languagestoo. So far, more than 23000 hits have been made to the site. In addition, an e-mailhelpline ([email protected]) has also been provided.

Complaints

13. The BCSBI has received 484 complaints till the end of March 2007 (Annex II). Inthis context, it needs to be clarified unambiguously that the BCSBI functions as anindustry-wide watchdog and does not deal with individual complaints. Thecomplaints, have, therefore, been forwarded to the concerned authorities for redressalbut are used as a data-base for ascertaining systemic deficiencies in banks and fortaking necessary remedial action.

On the one hand, the awakening of bank customers to their rights has raised theirexpectations and on the other hand judgements and compensation Awards given byBanking Ombudsmen and Consumer Courts etc. have resulted in more and morecustomers seeking relief from various consumer fora. BCSBI’s efforts are to ensurethat, as far as possible, customer complaints are redressed internally within themember bank and not escalated externally to the level of the Banking Ombudsmanor Consumer Courts etc. Member banks have been sensitised in this regard.

Training

14. The BCSBI has extended faculty support to various training establishments in orderto educate banks’ staff on the Code and its implementation. Members have been advisedto introduce a session on ‘Customer Service’ in every training programme so thatbank staff are familiarised with the provisions of the Code and its commitments. TheBCSBI undertakes to provide necessary faculty support for this purpose.

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Field Visits

15. To have a first hand feel about the progress made by member banks, the BCSBI hascommenced visits to Head Offices of member banks. During these visits the bank’sefforts towards implementation of the Code provisions was assessed and systemicgaps identified. BCSBI officials have also visited a few branches to have a feel of theawareness of the Code at grassroot level. It is clear that members need to devotemore time and attention if they are serious about compliance.

Plans for Visits to branches of Member Banks in North East, Andhra Pradesh andMetro centres

16. The BCSBI has also finalised field visits to select branches in the four metro centres,viz., Chennai, Kolkata, Mumbai and New Delhi. The visits commenced in May 2007.On a pilot basis, the BCSBI is discussing with the IIBM, Guwahati and ASCI,Hyderabad to finalise modalities for undertaking field studies in the North Easternregion of the Country and in Hyderabad, respectively.

The BCSBI has the unique position of serving as a “comfort buffer” for both, theregulatory as well as the regulated entities. In this context it is apt to recall RBIGovernor, Dr.Reddy’s remarks : “those banks which adhere to the BCSBI Code wouldprovide the RBI necessary supervisory comfort” . The BCSBI sees itself as followinga collaborative approach with its member banks to ensure that complaints betweenregulatory and regulatee are kept to the minimum. The BCSBI, therefore, looksforward, with confidence, to continuing the relationship of co-operation andcollaboration with its members in the year 2007-08.

Acknowledgements

The BCSBI has been fully supported by the Reserve Bank of India and the Indian Bank’sAssociation and the member banks. Shri Vinay Baijal who has been with the BCSBI asCEO and member of the Governing Council, since its inception, has reverted to the ReserveBank. His efforts in crystallizing BCSBI’s initiatives are non-pareil.

BCSBI has taken its first step forward. As we journey ahead together, in a spirit ofcooperation and collaboration, customers, particularly the common man, can look forwardto a significant and enduring improvement in customer service.

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01. ABN Amro Bank02. Allahabad Bank03. Andhra Bank04. Arab Bangladesh Bank Limited05. Bank of America NA06. Bank of Baroda07. Bank of Ceylon08. Bank of India09. Bank of Maharashtra10. Bank of Nova Scotia11. Bank of Rajasthan Ltd.12. Barclays Bank PLC13. BNP Paribas14. Calyon Bank15. Canara Bank16. Catholic Syrian Bank17. Central Bank of India18. Centurion Bank of Punjab Ltd.19. Citibank N A20. City Union Bank Ltd.21. Corporation Bank22. DBS Bank Ltd.23. Dena Bank24. Deutsche Bank25. Development Credit Bank Ltd.26. Dhanlakshmi Bank Ltd.27. Federal Bank Ltd.28. HDFC Bank Ltd.29. HSBC Ltd.30. ICICI Bank Ltd.31. IDBI Bank32. Indian Bank33. Indian Overseas Bank

34. IndusInd Bank Ltd.35. ING Vysya Bank Ltd.36. Jammu & Kashmir Bank Ltd.37. J P Morgan Chase Bank NA38. Karnataka Bank39. Karur Vysya Bank Ltd.40. Kotak Mahindra Bank Ltd.41. Krung Thai Bank PCL42. Lakshmi Vilas Bank Ltd.43. Oman International44. Oriental Bank of Commerce45. Punjab National Bank46. Ratnakar Bank Ltd.47. SBI Commercial and International Bank48. Shinhan Bank49. Societe Generale50. South Indian Bank Ltd.51. Standard Chartered Bank52. State Bank of Bikaner & Jaipur53. State Bank of Hyderabad54. State Bank of India55. State Bank of Indore56. State Bank of Mysore57. State Bank of Patiala58. State Bank of Saurashtra59. State Bank of Travancore60. Syndicate Bank61. Tamilnad Mercantile Bank Ltd.62. UCO Bank63. Union Bank of India64. United Bank of India65. UTI Bank Ltd.66. Vijaya Bank67. Yes Bank Ltd.

S. No. Name of the Bank S. No. Name of the Bank

Annex I(a)List of banks which have enrolled as members of the BCSBI

01. Punjab and Sind Bank02. Lord Krishna Bank@03. Abu Dhabi Commercial

S. No. Name of the Bank S. No. Name of the Bank

Annex I(b)List of banks which have registered/declared their intent to become members of the BCSBI

04. American Express05. State Bank of Mauritius06. Mashreq Bank07. United Western Bank*

@ Merger proposal under litigation* United Western Bank has since merged with IDBI Bank Ltd.

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1 2 3 4 5 6 7 8 9 10 11 12 Total

July 27 16 4 10 6 2 6 15 1 29 116

August 16 18 3 4 6 1 24 12 84

September 17 6 9 4 1 15 8 60

October 10 5 1 2 3 1 15 8 45

November 6 7 1 6 3 1 4 9 37

December 1 7 2 1 1 6 3 21

January 4 13 1 5 6 7 1 5 42

February 6 7 1 4 2 1 1 10 1 9 42

March 1 6 2 3 4 2 12 7 37

Total 88 85 13 45 35 4 11 2 108 3 90 484(18.18) (17.56) (2.69) (9.30) (7.23) (0.83) (2.27) (0.00) 0.41) (22.31) (0.62) (18.60) (100)

Note : Figures in brackets represent percentage of total complaints.

Code assigned to each category of complaints :1. Deposit accounts 2. Credit / Debit cards3. Pension 4. Tariff schedule & Service charges5. Cheque collection / Clearing cycle 6. Foreign exchange services7. ATM related 8. Compensation policy9. Do-not-call (unsolicited telemarketing) 10. Loans & advances - collection of dues - security repossession

11. Grievance redressal mechanism 12. Miscellaneous

Annex IISummary of complaints received during the July 2006 to March 2007

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Statement of Accountsfor the year

2006-07


LOONKAR & CO. 8-Dhun MahalChartered Accountants Garden Road

ColabaMumbai 400 039Tel : 2282 5580; 2285 6740Fax : 2287 3044

Auditors’ Report

We have audited the Balance Sheet of Banking Codes and Standards Board of India as at 31st

March 2007 and the Income and Expenditure account for the year ended on that date annexedthereto. These financial statements are the responsibility of the trustees of the Board. Ourresponsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in India.Those standards require that we plan and perform the audit to obtain reasonable assuranceabout whether the financial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures in the financialstatements. An audit also includes assessing the accounting principles used and significantestimates made by management, as well as evaluating the overall financial statementpresentation. We believe that our audit provides a reasonable basis for our opinion.

We report that:

i) We have obtained all the information and explanations, which to the best of our knowledgeand belief were necessary for the purpose of the audit.

ii) In our opinion, proper books of account as required by the law have been kept by theTrust so far as it appears from our examination of such books.

iii) The Balance Sheet and Income & Expenditure Account dealt with by this report are inagreement with the books of account.

iv) In our opinion and to the best of our information and according to the explanationsgiven to us, the said accounts give a true and fair view in conformity with the accountingprinciples generally accepted in India:-- in the case of Balance Sheet of the state of affairs of the above named trust as at 31st

March, 2007 and- in the case of Income & Expenditure account of the surplus for the accounting year

ended on that date.

For M/s. Loonkar & Co.Chartered Accountants

Place : MumbaiSd/-

Date: May 4, 2007 S. C. LOONKARPartner

(Membership No:10135)

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As per our report of even date

Sd/-(K.J. Udeshi)Chairman

M/s.Loonkar & Co.Chartered Accountants

Sd/-(K.V. Subba Rao)Chief Executive OfficerBanking Codes and Standards Sd/-Board of India Partner

AuditorsPlace: Mumbai Place: MumbaiDate: 4.5.2007 Date: 4.5.2007

FUNDS AND LIABILITES Amount AmountRs. Rs.

Trust Funds or Corpus Balance as per last balance sheets Nil Adjustment during the year (give details). - Contribution received during year 15,636,000 15,636,000

Other earmarked funds Created under the provisions of the trust- deed or scheme or out of the income). Depreciation Fund Nil Sinking Fund Nil Reserve Fund Nil Any other Fund Nil - Public Awareness Fund (Tfd. From Income & Exp. A/c) 500,000 500,000

Loans (Secured or unsecured)- From trustee Nil From others Nil Nil

Liabilities- For expenses Nil For advances 156,422 For rent and other deposits Nil For sundry credit balances Nil 156,422

Income and Expenditure Account Balance as per last balance-sheet Nil Less appropriation, if any Nil Add: Surplus Nil as per Income and Expendiure Account 1,322 1,322

Total Rs. 16,293,744

BANKING CODES AND STANDARDS BOARD OF INDIABalance Sheet as on March 31,2007

PROPERTY & ASSETS Amount AmountRs. Rs.

Immovable properties Nil Additions or deductions (including those for depreciation), if any during the year. Nil Nil

Investments -Govt.securities (cost)-Annex-I 15,602,942 15,602,942

Furniture and fixtures - Balance as per last balance-sheet. Nil Additions or deduction (including those for depreciations). If any, during the year. Nil Nil

Loans (Secured or unsecured) Good/doubtful Loan Scholarships Nil Other loans Nil Nil

Advances - To trustees Nil To employees Nil To contractor Nil To lawyers Nil To others- - Trade Mark 12,640 - Tax Deducted at Source 16,590 - Pre-acquisition Interest on Investments 363,254 392,484

Income Outstanding* - Rent Nil Interest Accrued 147,079 Other Income Nil 147,079

Cash and Bank Balances- (a) In current account or fixed deposit 150,179

(Annex-II) (b) With the trustee Nil (c) With the manager Nil

Stamps 1,060 151,239

Total Rs. 16,293,744

(As per Schedule VIII of Bombay Public Trust Act, 1950)

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PART-III Shares, Debentures, Public Securities, Deposits etc.As per Schedule VIII of Bombay Public Trust act 1950

Date and Kind of investments Full description such as the name Face Value Cost Rate of Remarksyear of of the company, distinctive Nos.of interestpreparation shares and certificates type of shares, borne by

etc. Date of redemption or repayment investments

1 2 3 4 5 6 7

March (i) Shares31,2007 (ii) Bonds and Debentures

(iii) Public Securities 1) 7.37% GOI Securities 2014 14500000.00 14118650.00 7.37%2) 8.07% GOI Securities 2017 1480000.00 1484292.00 8.07%Total 15980000.00 15602942.00

(iv) Deposits (v) Others

As per our report of even dateSd/-(K.J.Udeshi)Chairman


Sd/-(K.V.Subba Rao)Chief Executive Officer Sd/-Banking Codes and Standards PartnerBoard of India Auditors

Place: MumbaiPlace: Mumbai

Date: 4.5.2007Date: 4.5.2007

BANKING CODES AND STANDARDS BOARD OF INDIASchedule of Investments belonging to the Trust

Annex-I

Bank Accounts Amount Rs.

In Savings Account- ICICI Bank 28,187In Current Account- Central Bank of India 121,992[Both accounts in the name of Banking Codes and Standards Board of India’ ]

150,179

BANKING CODES AND STANDARDS BOARD OF INDIABalance Sheet as on March 31, 2007

As per our report of even dateSd/-(K.J. Udeshi)Chairman


Sd/-(K.V. Subba Rao)Chief Executive Officer Sd/-Banking Codes and Standards PartnerBoard of India Auditors

Place: MumbaiPlace: Mumbai

Date: 4.5.2007Date: 4.5.2007

Annex-II

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EXPENDITURE Amount AmountRs. Rs.

To Expenditure in respect of propertiesRates, taxes, cesses NilRepairs and maintenance NilSalaries NilInsurance NilDepreciation(by way of provision or adjustments) Nil Nil

Other expenses Nil

To Establishment expenses Nil

To Remuneration to trustees Nil

To Legal expenses Nil

To Audit fees Nil

To Contribution and fees Nil

To Amount written off (a) Bad debts Nil (b) Loan scholarships Nil (c) Irrecoverable rents Nil (d) Other items Nil Nil

To Miscellaneous expenses Nil

To Depreciations Nil

To Amounts transferred to Reserve - Public Awareness Fund 500,000

To Expenditure on objects of the trust (a) Religious Nil (b) Educational Nil (c) Medical Relief Nil (d) Relief of poverty Nil (e) Other charitable objects Nil Nil

To surplus carried over to Balance Sheet 1,322

Total Rs. 501,322

BANKING CODES AND STANDARDS BOARD OF INDIAIncome and Expenditure Account for the period ended March 31,2007

INCOME Amount AmountRs. Rs.

By Rent accrued Nil (realised)

By Interest accrued (realised)

on securities (accrued) 147,079

on loans Nilon bank account (realised) 354,243 501,322

By Dividend Nil

By Donations in cash or kind Nil

By Grants Nil

By Income from other sources Nil

By Transfer from Reserve Nil

By Deficit carried over to Balance Sheet Nil

Total Rs. 501,322

[As per SCHEDULE IX of Bombay Public Trust Act, 1950]

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Notes forming part of accounts for the period ended 31 March 20071. Period of Accounts

The Banking Codes and Standards Board of India (BCSBI) was registered as a Societyunder the Societies Registration Act, 1860 on 18 February 2006 at Mumbai. Hence theabove accounts are for the period between 18 February 2006 and 31 March 2007. Therewere no transactions between 18 February 2006 and 31 March 2006. The Board wasregistered as a Public Charitable Trust under the Bombay Public Trust Act, 1950 on 25May 2006.

2. Previous Year’s figuresThis being the first year of operation, there are no corresponding figures for the previousyear.

3. Expenses Borne by Reserve Bank of IndiaThe Reserve Bank of India has agreed to extend financial support to the Board by way ofmeeting its full expenses including salary, perks and other allowance of the staff attachedto the Board for the first five years of operation and providing furnished Officeaccommodation & Office equipments etc. free of cost. Consequently, the Income andExpenditure Account does not show any expenses since all the expenses have beenborne by the Reserve Bank of India.

4. Advance for Expenses from Reserve Bank of IndiaReserve Bank of India had advanced a sum of Rs.207000/- to the Board on April 5,2006for opening Bank account and for meeting minor establishment expenses which too areborne by Reserve Bank of India . The unspent balance of Rs.156421.52 at the year endis shown as advance from Reserve Bank of India on the liability side in Balance Sheet.

5. Corpus FundDuring the first five years of operation, the Board will build up its corpus from registrationand membership fees so that when the RBI funding is phased out, the Board wouldbecome self-financing. The registration fees and the membership fees will, accordingly,be directly credited to the Corpus Fund, during the first five years of operation, beginningwith the current year.

6. Public Awareness FundThe Board has transferred Rs. 5,00,000 to Public Awareness Fund to be spent for thispurpose within the next five years.





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Members of the Governing Council, the Banking Codes and ...

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