BANKING CODES AND STANDARDS BOARD OF INDIA

The Reserve Bank of India and other 11 banks joined hands and established Banking Codes and Standards Board of India in February,2006.The Board seeks to ensure that banking codes and standards voluntarily adopted by banks are adhered to while providing service to customers.The indusrty-wise norms have been codified and made avilable at one source namely the code of commitment to customers.The code has the object of identifying and rectifying systemic deficiencies if any by initiating collaborative action.
The adoption of Code of Commitment to Customers was a land mark in the history of Indian banking.The code provides a charter of rights to customers which they can enforce against the concerned bank.As per the code banks can not rely on the implicit consent of a customer for selling a product to him or providing a particular service to him..All products and services have to be sold to customers on the basis of their explicit consent alone.Moreover the such consent must be obtained in writing.