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Annual Report2014-15

BANKING CODES AND STANDARDSBOARD OF INDIA

www.bcsbi.org.in

PUBLISHED BY

Narayanan RajaChief Executive OfficerBanking Codes and Standards Board of IndiaC-7, Reserve Bank of India BuildingBandra Kurla ComplexMumbai- 400051

Banking Codes and Standards Board of India

Governing Council

Chairman

A C Mahajan

Members

Narayanan Raja Chief Executive Officer

Banking Codes and Standards Board of India

M M Chitale C Krishnan

H N Sinor Rama Bijapurkar

Annual Report 2014-15Banking Codes and Standards Board of India

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ANNUAL REPORT OF THE BANKING CODES AND STANDARDS BOARD OF INDIA

2014-15

Banking Codes and Standards Board of India (BCSBI) set up by Reserve Bank of India (RBI) in 2006 continued to discharge its mandate of reviewing and evolving codes and standards for fair treatment of individual & micro and small enterprise customers by banks. While the Code of Bank’s Commitment to Customers was reviewed and updated during the last year, the task of updation of the Code of Bank’s Commitment to Micro and Small Enterprises has been taken on hand and is likely to be completed shortly. As part of its mandate of monitoring Code implementation, BCSBI authorized persons undertook visits to over 2100 branches and 59 centralized processing centres of banks. In addition more than 4000 customers were also interviewed to obtain their feedback on adherence by banks to the provisions of the Codes. BCSBI also undertook Code Monitoring Studies in the areas of retail loans, small deposit accounts and charge levied by banks on commonly used services. BCSBI also participated in Customer Awareness Meets organized by Banking Ombudsmen or by banks. In addition, BCSBI organized a few customer meets and meetings of controlling heads of banks to spread awareness and the need to adhere to Code provisions to enhance the level of customer satisfaction.

Governing Council

The term of the present Governing Council which was last reconstituted on December 14, 2011 for a period of three years ended on December 13, 2014. RBI had requested the members of the Governing Council to continue until the new Governing Council is reconstituted. Accordingly, the members continued till March 31, 2015. The Governing Council has since been reconstituted.

The Governing Council which is vested with the powers of general superintendence, direction and control of the affairs and funds of BCSBI, held ten meetings during the year 2014-15. As per the directions of the Governing Council, BCSBI undertook certain special studies relating to service charges levied by members to their customers for common services and also conducted visits to bank branches and Central Processing Centres to ascertain the actual level of implementation of Codes.

Membership

During the year under review, one scheduled commercial bank (viz. Bharatiya Mahila Bank Ltd), one Urban Co-operative Bank (viz. Nasik Merchants Co-operative Bank Ltd) and two Regional Rural Banks (viz. Madhya Bihar Gramin Bank and Mizoram Rural Bank) have been enrolled as members of BCSBI. With these additions and merger of two members viz. Marudhara Gramin Bank and Mewar Aanchalik Gramin Bank into Rajasthan Marudhara Gramin Bank, total number of members stood at 130 as on March 31, 2015. BCSBI will continue its efforts to enlist eligible banks as members so that all bank customers benefit from the Codes. During the year under review an amount of `361.00 lakh was collected from members towards their annual membership fees. Names of member banks as on March 31, 2015 are listed in Annex I.


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Monitoring of Code Implementation and visits to bank branches to assess implementation

BCSBI has been set up as an independent and autonomous body with the twin objective of framing of Codes and Standards for fair treatment of customers as also monitoring implementation of the Code provisions by member banks. The two Codes - Code of Bank’s Commitment to Customers and Code of Bank’s Commitment to Micro and Small Enterprises - brought out are periodically reviewed and revised. Monitoring of Code implementation is done in two modes – one, by obtaining an Annual Statement of Compliance (ASC) from banks on a structured format, signed by a senior official, known as Principal Code Compliance Officer and two, by visiting sample of branches selected at random to look into grass-root level implementation. The ASCs are self-certified statements by the bank on Code implementation. These statements are scrutinised and where required, followed up with banks. As regards visits to branches, these are undertaken by authorized representatives, who record their observations in a structured questionnaire. They also interview a few customers from each branch to obtain their feedback. Branches for the purpose are selected keeping in view geographic locations of banks and also ensuring a mix of metro/urban and semi-urban/rural branches. The findings of branch visits and responses from customers obtained in the structured questionnaire are analysed and studied. The output of branch visits and customer responses are used for arriving at a Rating of Banks on Code implementation. The findings of Branch Visits and Rating awarded are conveyed to Banks for further action and in the case of banks, whose performance is comparatively below par, the Governing Council of BCSBI has held discussions with Top Management of such Banks.

BCSBI Rating of Member Banks

During the year, 2107 branches of 47 banks located in 47 cities / towns and 59 Central Processing Centres were visited by BCSBI representatives. In addition, around 4300 customers of banks were interviewed to obtain their responses on implementation of the Codes. As in the previous year, the Branch Visit findings and Customer Responses obtained will be used to rate banks. Accordingly, banks will be awarded a rating out of four categories, viz. High level of compliance, Above Average level of compliance, Average level of compliance and Below Average level of compliance. BCSBI has engaged the services of rating agency CRISIL for assisting in developing the rating model.

Code of Bank’s Commitment to Micro and Small Enterprises

The Code of Bank’s Commitment to Micro and Small Enterprises, which was first released in May 2008 and revised in August 2012, has again been taken up for further review. Sug-gestions have been sought from banks, industry associations and individuals. Suggestions received and observations of Reserve Bank of India have been studied. It is proposed to bring out a revised MSE Code during the first quarter of 2015-16.

Code Monitoring Studies

As part of the Plan under Strategic Thrust areas identified for action, BCSBI undertook certain studies around select themes relating to Code provisions and also certain other important customer service related areas. During the year 2014-15, BCSBI conducted the


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following studies:

Study of implementation of Code Provisions relating to Retail Loans: The study covered 79 branches / processing centres of 39 banks comprising all public sector banks, major private and foreign banks having significant retail loan business. The study was carried out by BCSBI officials by visiting one branch/ processing centre of each of the banks in Mumbai and another one at an outside centre. The study highlighted that in a large number of banks there is no formal system laid down for providing important information in the form of properly documented product specific Most Important Terms and Conditions (MITC) as part of loan application to the customers as required under Para 8.11.1.a of the Code. The study also highlighted that a large number of banks were providing authenticated copies of loan documents executed by the customer only on receipt of specific request from the borrower even though they are required to provide them to all customers.

Study of charges levied by banks for commonly used services by individual customers: The study was carried out by BCSBI officials on perusal of tariff schedules of 47 banks, viz. 26 public sector, 18 private sector and 3 foreign banks, available on their websites. The study has revealed certain shortcomings in display of tariff schedule on websites of some banks, lack of clarity on some of the services and related charges in the tariff schedule which were communicated to banks for their necessary action.

Display of information on opening of Small Accounts: BCSBI, keeping in mind importance of financial inclusion, undertook quick visits to 2 branches each in Mumbai of 48 major banks, comprising 26 public sector, 19 private sector and 3 foreign banks with the objective of verifying whether the bank branches declare in clear terms that they open ‘Small Accounts’ with simplified documentation, i.e. on the basis of self attested photograph. The visiting officials also collected additional information on Basic Saving Bank Deposit Account (BSBDA) and display of Comprehensive Notice Board. The study revealed that a large number of banks have not implemented the relevant Code provision regarding display of information on opening of Small Accounts and documents required for the same. The matter has been taken up with the banks.

Feedback from Micro and Small Enterprises Customers of banks:

A study of Lending to Micro and Small Enterprises (MSEs) covering the commitments of member banks as contained in the Code of Bank’s Commitment to MSEs was undertaken during November-December 2013. Additionally, BCSBI for the first time, collected feedback directly from MSE Customers to ascertain from them their experience while dealing with their banks. The findings of the feedback obtained from MSE customers confirmed the findings of our earlier study that:

a) Banks were providing to MSE customers simple / standardized loan applications, along with a checklist of documents to be submitted;

b) Though a system of giving acknowledgement on receipt of applications was put in place by banks, the system of indicating timeframe for disposal of the applications was not followed; however, banks were disposing off loan application within the timeframe laid down;


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c) Sanction letters containing the terms and conditions were found to be issued to the loan applicants. However, some of the banks were not conveying in writing the reasons for loan applications being declined; and

d) Banks were not found to be prompt in giving copies of the MSE Code to the borrowing customers.

Framing Model Customer Rights Policy

As desired by Reserve Bank of India, BCSBI, in association with Indian Banks’ Association, drafted a Model Customer Rights Policy for banks. The Policy enshrines basic rights of the customers of banks. It spells out the rights of the customer and also the responsibilities of the bank. The five basic rights covered are: Right to Fair Treatment, Right to Transparency, Fair and Honest Dealing, Right to Suitability, Right to Privacy and Right to Grievance Redress and Compensation. The draft Customer Rights has been approved by RBI. IBA was then advised to circulate it to the banks for formulating their own Board approved Policy latest by July 31, 2015.

Resolution of Systemic Issues

Though BCSBI is not a complaint redressal organisation, it receives a number of complaints. These complaints along with Awards of Banking Ombudsmen and decisions of Appellate Authority, under Banking Ombudsman Scheme, are examined to see if there is any systemic deficiency, which can be corrected. During the year, BCSBI received 615 complaints. All the complaints received are classified into twelve categories, based on the issues raised in the complaints, analysis of which indicates that the number of complaints relating to Deposit Accounts and Credit Cards have increased. The profile of complaints is given in Annex II.

BCSBI At a Glance

2013-14 2014-15

Members of BCSBI 127 (After merger of some RRBs)

130 (After merger of some RRBs)

Banks admitted as members during the year 3 4

Applications in process for membership - 1

Participation in : Town Hall Meetings / Customer Awareness Programmes

22 32

Workshops / Conferences / Seminars 8 5

Customer Meets organised 4 8

Branches / Centralised Processing Centres visited to look into Code implementation

3080 2166

Monitoring Studies – Branches/Units visited 74 175

Credit Counselling cases handled 148 151

Complaints received and dealt with 512 615


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Shri A C Mahajan, Chairman, BCSBI addresses the Customer Meet at Panaji on 26th June 2014. Also seen are Shri N Raja, CEO, BCSBI (seated at left) and another official.

A cross section of the audience at Panaji

Shri A C Mahajan, Chairman, BCSBI (2nd from left), Dr. (Smt.) S Chattopadhyay, Banking Ombudsman, Kolkata, Shri N Raja, CEO, BCSBI (extreme left) and another official are seen at the Customer Meet at Kolkata on 3rd September 2014.


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Shri N Raja, CEO, BCSBI makes a point at the Customer Meet at Kochi on 18th December 2014 while Shri A C Mahajan, Chairman, BCSBI (second from right), Shri P K K Krishnan, Sr. VP, BCSBI (extreme left) and another senior official look on.

Shri A C Mahajan, Chairman, BCSBI addresses a Customer Meet at Hyderabad on 31st October 2014.

A cross section of the gathering at Hyderabad


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Shri N Raja, CEO, BCSBI is seen addressing a Customer Meet at Nagpur on 12th January 2015.

Shri R I Shaikh, Sr. VP, BCSBI speaks at an Awareness Programme organized by Bank of Baroda at Godhra on 8th January 2015.


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Shri N Raja, CEO, BCSBI speaks at the Customer Awareness Meeting organized by Lakshmi Vilas Bank at Chennai on 28th February 2015.

Shri A C Mahajan, Chairman, BCSBI stresses upon a valid point at the Customer Meet held at Jammu on 9th March 2015.


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Conference of Principal Code Compliance Officers

The annual Conference of Principal Code Compliance Officers, representing all Member Banks of BCSBI, was held on May 20, 2014 in Mumbai. Dr. (Smt.) Deepali Pant Joshi, Executive Director, Reserve Bank of India delivered the inaugural address and interacted with the participants. The meeting was also addressed by the Chairman, BCSBI and other senior officials. Dr. Joshi stated that consumer confidence and trust in a well functioning market for financial services promotes financial stability, growth, efficiency and innovation over the long term. Financial consumer protection reinforced with financial inclusion and financial literacy will lead to financial stability.

Spreading Awareness of the Codes

During branch visits and interaction with customers, it has been observed that awareness of the Codes continues to be low. This called for concerted action. While it is the responsibility of banks to spread awareness, BCSBI has been supplementing their efforts by organizing a few Customer Meets as also meeting of Controlling Heads of Banks. Such Meets have been organized at Coimbatore, Panaji, Chandigarh, Indore, Kolkata, Allahabad, Hyderabad, Kochi, Nagpur, Bhubaneswar and Jammu during the year.

In addition to the above, the CEO and other officials of BCSBI participated in the Customer Awareness Meets organized by banks and interacted with customers and bank officials. BCSBI officials also participated in the Awareness Programmes organized by Banking Ombudsmen and Financial Inclusion and Development Department of RBI at nine places. BCSBI also lent faculty support to Indian Institute of Bank Management, Guwahati, College of Agricultural Banking (RBI), Pune and Indian Institute of Banking and Finance.

Engagement with Media

In addition to arranging customers’ meet and participation in meetings arranged by the Offices of Banking Ombudsman, BCSBI had also engaged a PR agency for support in creating awareness about BCSBI and Codes among general public. The agency had arranged for publicity through stories on topics relating to Awareness of the Code provisions, banks’ commitment towards physically challenged customers, ATM frauds, remittance through NEFT by walk-in customers and Unsolicited Credit Cards. These stories were printed in various newspapers. The agency also arranged for interviews of the Chairman which were telecast in TV channels as also printed in a few newspapers and digital media.

Credit Counselling Initiative

BCSBI’s Credit Counselling Cell set up in 2009, continued to assist distressed borrowers by offering them free counselling. During the financial year ended March 31, 2015, it handled 151 references as against 148 cases in the previous financial year. Most of the cases referred to the cell were pertaining to credit card dues, personal loans and home loans.

BCSBI Newsletter – “Customer Matters”

The Newsletter “Customer Matters”, launched in April 2009, attempts to provide the readers with information about important decisions of Banking Ombudsmen in the area of customer


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complaints and regulatory developments pertaining to retail and MSE customers, decisions taken by Consumer Courts on bank-customer disputes, etc. The Newsletter continued as a medium for increasing awareness of readers on current banking issues.

Funds Position

As per the funding arrangement agreed with Reserve Bank of India upto 2015-16, BCSBI is required to utilise its entire interest income towards meeting its expenditure with the gap representing the excess of expenditure over income being met by RBI. During the year under review, the expenditure of BCSBI amounted to `219.05 lakh which was fully met out of interest income from the Corpus Fund invested. As such, an amount of `107.42 lakh received from RBI will be returned.

Since the funding support from RBI will cease from the year 2016-17 onwards, BCSBI will be required to meet its expenditure out of income generated from the funds invested. To enable BCSBI to meet the entire expenditure on its own, members’ contribution was enhanced from the year 2015-16. As in the past, the entire contribution made by the member banks in the form of registration fees and annual membership fees has been credited to the Corpus Fund as desired by them.

As on March 31, 2015, the Corpus Fund amounted to `2269.19 lakh. With the proposed increase in membership fee for the year 2015-16, the Corpus will go up to `2991.19 lakh. BCSBI intends to build up the Corpus steadily with a view to becoming self sufficient since the RBI funding support will cease after 2016.

Acknowledgements

BCSBI is thankful to Reserve Bank of India for their continued financial support and for allowing us to participate in the Awareness Programmes organized by the Banking Ombudsmen and Town Hall Meetings for MSEs organized by Financial Inclusion and Development Department. BCSBI also wishes to thank the top management of RBI for their continued guidance and support in discharging the responsibility cast on the BCSBI. BCSBI also wishes to thank Indian Banks’ Association and all Member Banks for their support and cooperation.

BCSBI wishes to place on record sincere thanks and appreciation to the outgoing members of the Governing Council for their able guidance and valuable contribution to the espousal of customer service.


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Annex IBCSBI members

Sl. No.

Name of the bank

Scheduled Commercial Banks1 AB Bank Ltd.2 Allahabad Bank3 Andhra Bank4 Axis Bank Ltd.5 Bank of America N A6 Bank of Baroda7 Bank of Ceylon8 Bank of India9 Bank of Maharashtra10 Barclays Bank PLC11 Bhartiya Mahila Bank Ltd.12 BNP Paribas13 Canara Bank14 Central Bank of India15 Citibank N A16 City Union Bank Ltd17 Commonwealth Bank of Australia18 Credit Agricole Corporate and Investment Bank19 Corporation Bank20 DBS Bank Ltd21 Dena Bank22 Deutsche Bank AG23 DCB Bank Ltd.24 Dhanlaxmi Bank Ltd.25 HDFC Bank Ltd.26 HSBC Bank Oman S A O G27 ICICI Bank Ltd.28 IDBI Bank Ltd.29 Indian Bank30 Indian Overseas Bank31 IndusInd Bank Ltd.32 ING Vysya Bank Ltd.33 JP Morgan Chase Bank N A34 Karnataka Bank Ltd.35 Krung Thai Bank Public Company Ltd.36 Kotak Mahindra Bank Ltd.37 Mashreq Bank psc38 National Australia Bank39 Oriental Bank of Commerce40 Punjab National Bank41 Punjab & Sind Bank42 Shinhan Bank43 Societe Generale

Sl. No.

Name of the bank

Scheduled Commercial Banks44 Sonali Bank Ltd.45 Standard Chartered Bank46 State Bank of Bikaner and Jaipur47 State Bank of Hyderabad48 State Bank of India49 State Bank of Mauritius Ltd.50 State Bank of Mysore51 State Bank of Patiala52 State Bank of Travancore53 Syndicate Bank54 The Bank of Nova Scotia55 The Catholic Syrian Bank Ltd.56 The Federal Bank Ltd.57 The Hongkong and Shanghai Banking

Corporation Ltd.58 The Jammu & Kashmir Bank Ltd.59 The Karur Vysya Bank Ltd.60 The Lakshmi Vilas Bank Ltd.61 The Nainital Bank Ltd.62 The Ratnakar Bank Ltd.63 The Royal Bank of Scotland64 The South Indian Bank Ltd.65 Tamilnad Mercantile Bank Ltd.66 UCO Bank67 Union Bank of India68 United Bank of India69 Vijaya Bank70 Yes Bank Ltd.

Scheduled Urban Cooperative Banks1 Citizen Credit Cooperative Bank Ltd.2 Janata Sahakari Bank Ltd.3 Nagar Urban Cooperative Bank Ltd.4 Nagpur Nagarik Sahakari Bank Ltd5 Nasik Merchants Cooperative Bank Ltd.6 Nutan Nagarik Sahakari Bank Ltd.7 Punjab and Maharashtra Cooperative Bank Ltd.8 Thane Bharat Sahakari Bank Ltd.9 The Bharat Cooperative Bank (Mumbai) Ltd.10 The Cosmos Cooperative Bank Ltd.11 The Karad Urban Cooperative Bank Ltd.12 The Saraswat Cooperative Bank Ltd.13 The Shamrao Vithal Cooperative Bank Ltd14 The Zoroastrian Cooperative Bank Ltd.


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Sl. No.

Name of the bank

Regional Rural Banks1 Allahabad U P Gramin Bank2 Andhra Pradesh Grameena Vikas Bank3 Andhra Pragathi Grameena Bank4 Baroda Gujarat Gramin Bank5 Baroda Rajasthan Kshetriya Gramin Bank6 Baroda U P Gramin Bank7 Bihar Gramin Bank8 Central Madhya Pradesh Gramin Bank9 Chaitanya Godavari Grameena Bank10 Chhattisgarh Rajya Gramin Bank11 Dena Gujarat Gramin Bank12 Gramin Bank of Aryavarat13 Himachal Pradesh Gramin Bank14 Jammu & Kashmir Grameen Bank15 Jharkhand Gramin Bank16 Karnataka Vikas Grameena Bank17 Kashi Gomti Samyut Gramin Bank18 Kaveri Grameena Bank19 Kerala Gramin Bank20 Madhya Bihar Gramin Bank21 Madhyanchal Gramin Bank22 Maharashtra Gramin Bank23 Malwa Gramin Bank

Sl. No.

Name of the bank

Regional Rural Banks24 Meghalaya Rural Bank25 Mizoram Rural Bank26 Narmada Jhabua Gramin Bank27 Pallavan Grama Bank28 Pandyan Grama Bank29 Pragathi Krishna Gramin Bank30 Prathama Bank31 Puduvai Bharathiar Grama Bank32 Punjab Gramin Bank33 Purvanchal Bank34 Rajasthan Marudhara Gramin Bank35 Saptagiri Grameena Bank36 Sarva Haryana Gramin Bank37 Sarva U P Gramin Bank38 Saurashtra Gramin Bank39 Sutlej Gramin Bank40 Telangana Grameena Bank41 Utkal Grameen Bank42 Uttar Bihar Gramin Bank43 Uttarakhand Gramin Bank44 Uttarbanga Kshetriya Gramin Bank45 Vananchal Gramin Bank46 Vidharbha Konkan Gramin Bank

Annex IIProfile of Complaints

Sr. No. Nature of Complaints 2013-14 2014-15

1 Deposit Accounts 171 234

2 Credit Cards 88 127

3 Pension 6 2

4 Tariff Schedule & Service Charges 18 14

5 Cheque Collection/Clearing Cycle – Delayed Credit 8 18

6 ATM/Debit Cards 19 27

7 CIBIL Records 6 6

8 Compensation Policy 1 0

9 Harassment by Recovery Agents 3 10

10 Loans & Advances 118 116

11 Insurance Products 1 4

12 Miscellaneous 73 57

Total 512 615

Statement of Accounts for the year

2014-15


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M/s Gokhale & Sathe 308/309, 3rd Floor (Regd.) Udyog Mandir No.1Chartered Accountants 7-C, Bhagoji Keer Marg Mahim, Mumbai 400 016 Tel: 022-43484242

Auditors’ Report

We have audited the Balance Sheet of Banking Codes and Standards Board of India as at 31st March 2015 and the Income and Expenditure account for the year ended on that date annexed thereto. These financial statements are the responsibility of the trustees of the Board. Our responsibility 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 assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. 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 knowledge and 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 the Trust 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 in agreement with the books of account.

iv) In our opinion and to the best of our information and according to the explanations given to us, the said accounts give a true and fair view in conformity with the accounting principles generally accepted in India:-

- in the case of Balance Sheet of the state of affairs of the above named trust as at 31st March 2015 and

- in the case of Income & Expenditure Account of the trust for the accounting year ended on that date.

For M/s. Gokhale & Sathe Chartered Accountants

FRN:-103264W

Sd./- (Uday Sathaye) Place: Mumbai Partner Date: May 27, 2015 (Membership No.: 35107)


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BANKING CODES AND STANDARDS BOARD OF INDIABalance Sheet as on March 31, 2015

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

Year ended March 31,

2014 (`)

FUNDS & LIABILITIES Year ended March 31, 2015

(`)

Year ended March 31,

2014 (`)

PROPERTY & ASSETS Year ended March 31, 2015

(`)

Fixed Assets (Net of Depreciation) (Annex-III)

Trust Funds or Corpus 40,590 Computer and Peripherals 37,573

167,241,000 Balance as per last Balance Sheet 202,269,000 — Furniture & fixtures —

23,488,000Add: Contribution received during the year (including registration fees) 24,650,000 226,919,000

— Immovable Properties — 37,573

Investments

— Other earmarked funds — 35,835,312 Govt. Securities (Cost) (Annex I) 21,716,662

— Loans (Secured or unsecured) —

Public Awareness Fund — Advances- —

21,996,343 Balance as per last Balance Sheet 21,996,343 — To others- —

—Less: Trd to Income & Expenditure account 7,656,396 Tax Deducted at Source

—Add: Trd from Income & Expenditure account 7,754,912 22,094,859 16,590 A.Y 2007-08 16,590

18,885 A.Y 2012-13 —

11,540,000Advance from Member Banks- Membership Fee for the following year 22,959,000

24,415 A.Y 2013-14 24,415

52,787 A.Y 2014-15 42,928 83,933

4,696 Unamortised premium on GOI Securities 3,337

— Recoverable from RBI for Publicity Expenses —

6,292,527 Advances from RBI 10,742,234 174,137,637Fixed Deposit Receipts with banks (Annex II B) 226,715,632

Interest Outstanding

82,162 Professional and Audit Fees Payable 82,162 15,652,088 On Fixed Deposit Receipts with banks 22,570,727

— TDS A.Y 2013-14 — 1,187,968 On Government of India Securities 700,616 23,271,343

9,130 TDS A.Y 2014-15 —

— TDS A.Y 2015-16 9,130 3,678,194 Cash & Bank Balances (Annex II A) 10,977,905

230,649,162 Total 282,806,385 230,649,162 Total 282,806,385

Subject to Notes on Accounts

Sd./- (A. C. Mahajan) Chairman

Sd./- (N Raja) Chief Executive Officer Banking Codes and Standards Board of India

Place: Mumbai Date: May 27, 2015

As per our report of even date

M/s.Gokhale & Sathe Chartered Accountants Firm Regn. No. 103264W

Sd./- (Uday Sathaye) Partner Membership No.35107

Place: Mumbai Date: May 27, 2015


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Annex-I

BANKING CODES AND STANDARDS BOARD OF INDIA Schedule of Investments belonging to the Trust as on March 31, 2015

(As per Part III - Schedule VIII of Bombay Public Trusts Act, 1950)(Amount in Rupees)

Date and year of preparation Kind of investments Full description such as name of the company, distintive Nos. of shares and certificates, type of shares, etc. Date of redemption or repayment

Face Value Cost Rate of interest

borne by investments

1 2 3 4 5 6

At the beginning of the year (as on April 1, 2014)

(i) Shares —(ii) Bonds and Debentures —(iii) Deposits —(iv) Others —(v) Public Securities a) 7.37% GOI Securities 2014 14,500,000 14,118,650 7.37%

b) 8.07% GOI Securities 2017 1,480,000 1,480,000 8.07%c) 7.49% GOI Securities 2017 12,000,000 11,470,414 7.49%d) 7.99% GOI Securities 2017 2,800,000 2,800,000 7.99%e) 7.59% GOI Securities 2016 2,500,000 2,466,248 7.59%f) 8.24% GOI Securities 2018 3,500,000 3,500,000 8.24%

36,780,000 35,835,312Increase during the year (2014-15) — — — —Decrease during the year (2014-15) a) 7.37% GOI Securities 2014 14,500,000 14,118,650 7.37%

Total at the end of the year (as on March 31, 2015) 22,280,000 21,716,662

Annex-II

BANKING CODES AND STANDARDS BOARD OF INDIA Annexure to Balance Sheet as on March 31, 2015

(Amount in Rupees)

As on March 31, 2014

Bank Accounts As on March 31, 2015

In Savings Account

3,464,579 - ICICI Bank 10,752,920

— - Yes Bank 122,764

In Current Account

213,615 - Central Bank of India 102,221

3,678,194 Total (A) 10,977,905

In Fixed Deposits

5,000,000 - Laxmi Vilas Bank —

49,615,632 - State Bank of Mysore 75,715,632

75,400,000 - Vijaya Bank 58,500,000

44,122,005 - State Bank of Travancore 92,500,000

[All accounts in the name of Banking Codes and Standards Board of India]

174,137,637 Total (B) 226,715,632

177,815,831 (A)+(B) 237,693,537


Sd./- For M/s.Gokhale & Sathe (A. C. Mahajan) Chartered Accountants Chairman Firm Regn. No. 103264W

Sd./- Sd./- (N Raja) (Uday Sathaye) Chief Executive Officer Partner Banking Codes and Standards Board of India Membership No.35107

Place: Mumbai Place: Mumbai Date: May 27, 2015 Date: May 27, 2015


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Annex-III

BANKING CODES AND STANDARDS BOARD OF INDIA Annexure to Balance Sheet as on March 31, 2015

Particulars 01-4-2014Opening Balance

(`)

Date No of days

in use

Depreciation Rate

Addition (`)

GROSS BLOCK

(`)

Depreciation (`)

31-3-2015NET BLOCK

(`)

COMPUTER 34,292.30 17-09-2014 195 60% 14,343.00 48,635.30 29,181.18 19,454.12

Printer (HP Officejet Pro 8600+) 6,297.60 — — 60% — 6,297.60 3,778.56 2,519.04

Tally Software — 22-05-2014 313 60% 36,000.00 36,000.00 21,600.00 14,400.00

Tally Software — 03-06-2014 301 60% 3,000.00 3,000.00 1,800.00 1,200.00

Grand Total 40,589.90 53,343.00 93,932.90 56,359.74 37,573.16






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BANKING CODES AND STANDARDS BOARD OF INDIAIncome & Expenditure Account for the year ended March 31, 2015

(As per Schedule IX of Bombay Public Trusts Act, 1950)

Year ended March

31, 2014 (`)

EXPENDITURE Year ended March

31, 2015 (`)

Year ended March

31, 2014 (`)

INCOME Year ended March 31, 2015

(`)

— To Expenditure in respect of Properties — — By Rent — —

51,616 Repairs and maintenance 9,300 By Interest

10,763,698 To Establishment Expenses 12,037,535 2,788,756 On Securities 1,767,080

2,829,055 To Remuneration to Trustees 2,707,153 110,748 On Savings Bank account 230,669

— To Legal Expenses — 15,793,530 On Fixed Deposits with banks 19,620,977

28,090 To Audit Fees 28,090 — On Income Tax Refund 3,255 21,621,981

— To Contribution and Fees — — By Dividend —

To Amount written off — By Donation in cash or kind —

1,358 Premium on Govt Securities amortised 1,358 7,989,056 By Grants (From RBI) —

28,480 To Miscellaneous expenses 3,440 10 By Miscellaneous receipts —

24,143 To Depreciation 56,360 — By Premium on maturity of Government Securities

381,350

— To Amount Transferred to Public Awareness Fund

7,754,912 — By transfer from Public Awareness Fund 7,656,396

12,955,660 To expenditure on the objects of the trust 7,061,579

26,682,100 Total 29,659,727 26,682,100 Total 29,659,727





Subject to Notes on Accounts


19

Notes forming part of Accounts for the year ended 31st March, 2015

1. Significant Accounting Policies a. The Financial Statements are prepared on Accrual Basis.

b. Depreciation on Fixed Assets is provided using the Written Down Value

Method as per the Income Tax Act, 1961 as below:

Asset RateComputer 60%Printer 60%Tally Software 60%

c. Investments under Held to Maturity (HTM) category are carried at Acquisition Cost. The premium paid, if any, under this category is amortised over the residual life as per the guidelines of the Reserve Bank of India and the policy of BCSBI.

d. Investments are valued at cost or market value, whichever is lower.

2. Expenses Borne by Reserve Bank of India The Reserve Bank of India has agreed to fund the gap in expenditure over interest income upto

F.Y. 2015-16.The Income & Expenditure Account shows expenses incurred by BCSBI out of interest income and balance out of the Public Awareness Fund. As a result, there is a Surplus in the Income and Expenditure Account in the current year which has been transferred to the Public Awareness Fund. There has been no utilisation of grants received from Reserve Bank of India in the Current Year.

3. Advance for Expenses from Reserve Bank of India Out of the amount advanced by Reserve Bank of India for meeting expenses, the unspent closing balance

of `1,07,42,234/- is shown as advance on the Liability side in Balance Sheet as against `62,92,527/- at the beginning of the year.

4. Corpus Fund As per the funding proposal agreed to by the Reserve Bank of India, BCSBI continues to build up the Corpus

from registration and membership fees so that when the RBI funding ceases BCSBI will be self financed. The member banks have also desired that the entire contribution made by member banks in the form of Registration Fees and Membership Fees be credited to the Corpus. Accordingly, the Registration Fees and the Membership Fees are credited to the Corpus Fund during the year.

5. Public Awareness Fund The Board has transferred an amount of `77,54,912/- to the Public Awareness Fund this Year from the

Income & Expenditure Account.

6. Previous Year’s figures The corresponding figures for the previous year are re-grouped / re-classified, wherever necessary.


Sd./- For M/s. Gokhale & Sathe(A.C. Mahajan) Chartered Accountants Chairman Firm Regn No. 103264W Sd./- Sd./-(N. Raja) (Uday Sathaye)Chief Executive Officer PartnerBanking Codes and Standards Board of India Membership No. 35107


Schedule ABANKING CODES AND STANDARDS BOARD OF INDIA

Documents

Annual Report - Banking Codes and Standards Board of India Report///AR14-15.pdf · Banking Codes and Standards Board of India Annual Report 2014-15 4 c) Sanction letters containing