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Annual Report2013-14

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 2013-14Banking Codes and Standards Board of India

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ANNUAL REPORT OF THE BANKING CODES AND STANDARDS BOARD OF INDIA

2013-14

Banking Codes and Standards Board of India (BCSBI) set up by Reserve Bank of India (RBI) in 2006 continued to perform its twin mandate of framing codes and standards for fair treatment by banks of their individual and micro and small enterprise customers and monitoring to ensure that banks adhere to such codes and standards. The codes and standards are charters of rights of the retail / MSE customers. During the year, BCSBI has revised and updated the Code of Bank’s Commitment to Customers. BCSBI authorized persons visited more than 3000 branches / centralized processing centres and also interviewed around 6000 customers to ascertain position of Code implementation at the ground level. As part of its efforts to spread awareness of the Codes among customers and bank officials, BCSBI officials participated and addressed various Town Hall Meetings and Awareness Programmes organised either by the Banking Ombudsmen or by banks. In addition, BCSBI also organised four Customer Meets at different centres as also a Meeting of Controlling Heads of bank branches in Hyderabad to impress upon the senior bankers of the efforts to be made in implementation of the provisions of the Codes.

Governing Council

The Governing Council (GC), reconstituted in December 2011, which is vested with the general supervision, direction and control of the working of the BCSBI, held ten meetings during the year 2013-14. As per the directions of GC, BCSBI undertook certain studies as also conducted visits to bank branches to ascertain grass-root level implementation of the Codes. For the first time, member Banks were also rated on Code implementation.

Membership

During the year, two scheduled urban cooperative banks and four Regional Rural Banks have been enrolled as members of the BCSBI. With these additions and merger of certain RRBs, total number of members stood at 127 as on March 31, 2014. BCSBI will continue its efforts to enlist eligible banks as members so that all bank customers benefit from the codes. Names of member banks are listed in Annex I.

Visits to bank branches to assess implementation of the Codes

As members are aware, BCSBI, apart from framing Codes for customer service in banks and periodically reviewing and revising them, looks into implementation by banks of the provisions of the Codes. The mechanism for such monitoring is through obtention of a self certified Annual Statement of Compliance (ASC) covering important parameters from banks and examination of such statements. In addition to the above, BCSBI has adopted a system of visits to branches / processing centres of banks to verify the position regarding ground level implementation of the Code of Bank’s Commitment to Customers and Code of Bank’s Commitment to Micro and Small Enterprises. Such visits to branches for verification are


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confined to a sample of branches selected at random. While selecting the sample, attempt is made to ensure that a good number of centres located in various parts of the country are covered. Findings of branch visits are examined vis-à-vis the declarations by banks in ASCs and areas where improvements are required are taken up with the concerned banks. Members of the Governing Council of BCSBI also invite the Top Managements of select banks for discussions in regard to the measures to be taken by them to address the gaps in the Code implementation.

During the year, a sample of 3035 branches of 48 member banks (excluding Regional Rural Banks and Urban Co-operative Banks, a few small Private Sector Banks and Foreign Banks with either little or no retail operations), located in 60 cities / towns (as against 47 last time) were visited during May – July 2013 for verifying status of implementation of the Codes. As some of the branch banking activities are centralised, 55 centralised processing centres (CPCs) on a sample basis, were also visited. For the first time, rural branches which constituted 10% of the sample were also visited. In addition, a total of 6040 customers were also interviewed to obtain their responses on implementation of some of the provisions of the Code. The findings of branch visits and responses of customers were taken up with banks.

BCSBI Rating of Member Banks

BCSBI, for the first time, decided to rate Banks on Code Compliance. The outputs of branch visits and responses of customers were utilized as inputs for rating of banks on Code compliance. BCSBI had engaged the services of CRISIL for assistance in developing a rating model. The Branch Visit findings and Customer Responses obtained were grouped into five buckets, viz., Information Dissemination, Transparency, Customer Centricity, Grievance Redressal and Customer Feedback and scores awarded to the individual parameters under each of these buckets. Based on the overall score of the bank, a rating was awarded from out of four categories, viz., High level of compliance, Above Average level of compliance, Average level of compliance and Below Average level of compliance. Apart from overall rating, each bank was also rated in each of the five Parameter Groups mentioned above.

The rating exercise has revealed that only 10% of the banks subjected to rating exercise have achieved High level of compliance with Codes. More than 50% of the banks have been rated as Above Average. While approx. 35% banks are rated as Average, one bank is rated as Below Average. BCSBI had discussed with the CMDs / CEOs of the 16 banks, which could achieve only Average rating, in order to impress upon them the need for further strengthening their systems for Code compliance.

Bank group wise ratings awarded to the 48 banks along with their performance in Code compliance has been displayed on the website of BCSBI.

Code of Bank’s Commitment to Customers - 2014

The Code of Bank’s Commitment to Customers was first released in 2006. It was thereafter reviewed and revised in August 2009. A fresh revision of the Code was undertaken in order to bring about greater transparency and further enhancements in banking practices relating


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to customer service. Suggestions and views from various stake holders such as Banks, Customers, Indian Banks’ Association, Reserve Bank of India, Associations of Depositors, etc were obtained and examined by a Working Group with representatives from the Indian Banks’ Association (IBA), Reserve Bank of India (Customer Service Department and Department of Banking Operations and Development), Bank of Baroda, Bank of India, State Bank of India and HDFC Bank and chaired by the Chief Executive Officer, BCSBI. The Working Group also considered the recommendations of the Damodaran Committee and suggestions received from various RBI departments including Customer Service Department. The revised Code of Bank’s Commitment to Customers, 2014 approved by the Governing Council of BCSBI was sent to Member Banks in January 2014 for adoption and implementation.

Some of the key additions and modifications incorporated in the revised Code are:

New Sections on Electronic Banking including Do’s and Don’ts and safety measures to be taken, Selling of Third Party Products and measures to prevent misselling, Financial Inclusion including Basic Savings Bank Deposit Accounts, facilities for Senior Citizens and Differently-abled persons.

New provisions incorporated to take care of developments in banking, since the last revision of the Code in 2009.

Provisions on similar topics grouped together.

Some of the provisions redrafted / modified to bring about more clarity.

Banks are required to display in branches information on documents required to open Basic Saving Bank Deposit Account, as also relaxed criterion to open ‘Small Accounts’.

Code Monitoring Studies - Series 2 - Lending to MSEs

In order to monitor the level of implementation of the provisions of the Codes, BCSBI has been deputing Field Managers (ex RBI / Commercial Bank officials from respective centres) to visit select branches of member banks located in various cities across India. These visits are carried out generally once a year as part of the compliance exercise. In addition to such visits, as part of Action Plan under Strategic Thrust areas identified for action, BCSBI undertook certain studies around select themes relating to Code provisions. One such 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. The study covered 74 branches / processing centres of 28 major banks, spread in select centres.

The study revealed 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;


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c) However, banks were disposing off loan application within the timeframe laid down;

d) Sanction letters containing the terms and conditions were found to be issued to the loan applicants;

e) However, some of the banks were not conveying in writing the reasons for loan applications being declined;

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

g) Except for three banks, other banks under study had uploaded the bank’s policy on lending to Micro and Small Enterprises on their website.

Resolution of Systemic Issues

As provided in Banking Ombudsman Scheme, if the customer has any grievance against the bank he has to make first representation in writing to the bank. If the complaint is not resolved by the bank under their internal grievance redressal machinery to the satisfaction of the customer he can lodge a complaint to Banking Ombudsman. BCSBI also has been receiving complaints directly from the customers. These complaints as also Awards issued by Banking Ombudsmen and decisions of Appellate Authority under Banking Ombudsman Scheme are examined to see if they are indicative of any deficiencies of systemic or procedural nature. Such cases are taken up with the concerned banks and the BCSBI endeavours to resolve the systemic issue so that such complaints do not recur in future. Complaints received during the year grouped nature wise, are given in Annex II.

BCSBI At A Glance

2012-13 2013-14

Members of BCSBI 126 (after merger of some RRBs)

127 (after merger of some RRBs)

Banks admitted as members during the year 20 3

Applications in process for membership 2 -

Participation in : Town Hall Meetings / Customer Awareness Programmes

31 22

Workshops / Conferences / Seminars 26 8

Customer Meets organised 2 4

Branches / Centralised Processing Centres visited to look into Code implementaion

- 3080

Monitoring Studies - Branches Visited 112 74

Credit Counselling cases handled 165 148

Complaints received and dealt with 474 512


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At the Customer meet at Pune (L to R) Shri D.G. Kale, General Manager, RBI; Smt. Suma Varma, Chief General Manager, RBI; S/Shri A.C. Mahajan, Chairman, BCSBI; N. Raja, CEO, BCSBI; C. Krishnan and M.M. Chitale, Members of the Governing Council.

Shri N. Raja, CEO, BCSBI (seated at extreme left) at the panel discussion on Customer Protection.Dr. (Smt.) Deepali Pant Joshi, Executive Director, RBI is seated third from left.


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Shri A.C. Mahajan, Chairman, BCSBI (3rd from left) addressing customers at the ‘Awareness Programme’ organized by Dena Bank at Mumbai

S/Shri N. Raja, CEO; R.C. Arora and P.K. Agrawal, SVPs, BCSBI (seated at 4th to 6th from left) at the meeting with officials of Financial Ombudsman Institution of Taiwan at Mumbai.


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Shri A.C. Mahajan, Chairman, BCSBI (seated 2nd from left) addressing customers at the ‘Awareness Programme’ organized by State Bank of Bikaner and Jaipur at Jaipur.

Shri A.C. Mahajan, Chairman, BCSBI (seated 3rd from left) addressing bank officials at a Seminar organized by Indian Institute of Banking and Finance (IIBF) at Lucknow.


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Shri A.C. Mahajan, Chairman, BCSBI (3rd from left) at the National Seminar on “Financial Consumer Protection” organized by ASSOCHAM.

Shri A.C. Mahajan, Chairman, BCSBI (5th from left) addressing customers of banks at ‘Customer Meet’ organized by BCSBI at Ahmedabad.


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Spreading Awareness of the Codes

Awareness of the customers and officials about bank’s commitments contained in the Codes needs to be increased. As creating awareness about Codes is primarily the responsibility of member banks, as the Codes are commitments by banks to their customers, BCSBI had urged members to take specific steps in this direction. Some of the steps suggested include displaying on ATM screen suitable messages about bank’s commitments under the Codes, incorporating in their product brochures provisions of the Code, including in their product advertisements relevant Code provisions, etc.

BCSBI on its part has been participating in Town Hall Meets and Awareness Programmes organized by Banking Ombudsmen and Banks. The Chairman and the CEO, BCSBI, addressed customers in the Customer Meets organized by banks at Baroda, Kolkata, Mumbai, Jaipur, Delhi and Bengaluru. Other senior BCSBI officials participated in Awareness Programmes organized by Banking Ombudsmen at Ramanathapuram, Thiruchirapalli, Sirsa, Dholpur, Thiruppur, Thrunelveli, Kalalkere and Davangere. Awareness Programmes for Micro and Small Enterprises organized by Rural Planning and Credit Department of RBI at Kudal, Jalna and Pune were also attended by BCSBI officials.

BCSBI also lent faculty support to banks and other institutions. CEO, BCSBI addressed the Probationary Officers attending programme at ICICI Academy at Bengaluru. BCSBI officials also lent support to National Institute of Bank Management, Pune and Indian Institute of Bank Management at Guwahati.

Further, BCSBI, as part of its efforts to supplement the measures taken by member banks, organized “Customer Meets” at Ahmedabad, Nashik, Chennai and Coimbatore. In addition, a meeting of Controlling Heads of Banks located at Hyderabad was also organized on December 12, 2013 to call upon the regional heads of banks to spread awareness of the Codes.

Visits of foreign delegates

Two delegates from the Financial Ombudsman Institution (FOI) of Taiwan visited BCSBI on November 25, 2013 to learn about standards and codes of banking practices and their role and relevance in matters of financial consumer protection.

Credit Counselling Initiative

The Credit Counseling services was an initiative taken by BCSBI in October 2009 to provide free counseling to individuals and MSE customers of member banks whose credit exposures do not exceed `50 lakh.

During the year, 148 cases of counseling were handled. These pertained to default in credit card payments, personal loans and home loans and loans to micro and small enterprises.


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The borrowers were guided to seek from banks suitable assistance in repayment of loans where they appeared to be genuine cases.

BCSBI Newsletter – ‘Customer Matters’

The Newsletter “Customer Matters”, launched in April 2009, continued as a medium for increasing awareness of current banking issues, RBI measures in the area of customer service as also decisions taken by Banking Ombudsmen on customer complaints. The Newsletter also contains activities of BCSBI as also findings of any study and branch visits undertaken by BCSBI.

BCSBI Website

The website of BCSBI has been revamped during the year to make it more informative and user-friendly. The revamped website contains messages from the Chairman and the Chief Executive Officer. The section on FAQs has been reorganized and additional FAQs have been incorporated. A new segment called ‘Code for the Day’ has been added wherein important provisions from the Code are displayed by rotation on a daily basis. Another feature named ‘Did You Know’ has been introduced which highlights latest RBI instructions on customer service related issues. Provision to register request of members of public, who are interested to get soft copy of the quarterly newsletter “Customer Matters” has been provided.

Funds Position

As per the funding arrangement agreed with Reserve Bank of India upto 2015-16, BCSBI would be utilizing its entire interest income towards meeting its expenditure and RBI has agreed to fund the expenditure gap. During the year, total expenditure of BCSBI amounted to `266.82 lakh of which `186.93 lakh was met out of its income and the balance amount of `79.89 lakh was funded by RBI. Entire contribution made by the member banks in the form of registration fees and membership fees for the year 2013-14 has been credited to the Corpus Fund as in the past, as desired by them.

As on March 31, 2014, the investment of Corpus Fund and Public Awareness Fund made in accordance with the Investment Policy, aggregated `2268.13 lakh comprising of investments in Government Securities and in term deposits with member banks (including interest accrued and outstanding).

Going Forward

While stepping into ninth year of its existence, and looking back into the years gone by, BCSBI feels that more efforts are still needed to increase the awareness of Retail and Micro and Small Enterprises customers about their rights as contained in the Codes. Increased


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awareness will empower customer and act as a bulwark against any deficiency in customer service. BCSBI will continue to participate in Town Hall Programmes / Awareness Meets being organized by Banking Ombudsmen and Banks and will on its own organize ‘Customer Meets’ at different centres. It is also proposed to continue to publicise the Codes through cost effective media like FM Channels and digital media. To make the publicity efforts more effective and to ensure that BCSBI Codes get adequate coverage, BCSBI has engaged a professional PR Agency. BCSBI also proposes to undertake special studies in the area of customer service.

The Code of Bank’s Commitment to Micro and Small Enterprises was last reviewed and revised in August 2012. Since almost two years have passed, we propose to take the views of banks, customers and other stake holders and revisit the Code.

Acknowledgements

BCSBI is thankful to Reserve Bank of India for their continued financial support and for providing us with opportunity to participate in the Awareness Programmes organized by the Banking Ombudsmen and Town Hall Meetings for MSEs organized by Rural Planning and Credit Department, Reserve Bank of India. BCSBI is also grateful to 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.


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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 BNP Paribas12 Canara Bank13 Central Bank of India14 Citibank N A15 City Union Bank Ltd16 Commonwealth Bank of Australia17 Corporation Bank18 Credit Agricole Corporate and Investment Bank19 DBS Bank Ltd20 Dena Bank21 Deutsche Bank AG22 Development Credit Bank Ltd.23 Dhanlaxmi Bank Ltd.24 HDFC Bank Ltd.25 HSBC Bank Oman S A O G26 ICICI Bank Ltd.27 IDBI Bank Ltd.28 Indian Bank29 Indian Overseas Bank30 IndusInd Bank Ltd.31 ING Vysya Bank Ltd.32 JP Morgan Chase Bank N A33 Karnataka Bank Ltd.34 Krung Thai Bank Public Company Ltd.35 Kotak Mahindra Bank Ltd.36 Mashreq Bank psc37 National Australia Bank38 Oriental Bank of Commerce39 Punjab National Bank40 Punjab and Sind Bank41 Shinhan Bank42 Societe Generale

Sl. No.

Name of the bank

Scheduled Commercial Banks43 Sonali Bank Ltd.44 Standard Chartered Bank45 State Bank of Bikaner and Jaipur46 State Bank of Hyderabad47 State Bank of India48 State Bank of Mauritius Ltd.49 State Bank of Mysore50 State Bank of Patiala51 State Bank of Travancore52 Syndicate Bank53 The Bank of Nova Scotia54 The Catholic Syrian Bank Ltd.55 The Federal Bank Ltd.56 The Hongkong and Shanghai Banking

Corporation Ltd.57 The Jammu & Kashmir Bank Ltd.58 The Karur Vysya Bank Ltd.59 The Lakshmi Vilas Bank Ltd.60 The Nainital Bank Ltd.61 The Ratnakar Bank Ltd.62 The Royal Bank of Scotland63 The South Indian Bank Ltd.64 Tamilnad Mercantile Bank Ltd.65 UCO Bank66 Union Bank of India67 United Bank of India68 Vijaya Bank69 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 Nutan Nagarik Sahakari Bank Ltd.6 Punjab and Maharashtra Cooperative Bank Ltd.7 Thane Bharat Sahakari Bank Ltd.8 The Bharat Cooperative Bank (Mumbai) Ltd.9 The Cosmos Cooperative Bank Ltd.10 The Karad Urban Cooperative Bank Ltd.11 The Saraswat Cooperative Bank Ltd.12 The Shamrao Vithal Cooperative Bank Ltd13 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 Deccan Grameena Bank12 Dena Gujarat Gramin Bank13 Gramin Bank of Aryavarat14 Himachal Pradesh Gramin Bank15 Jammu & Kashmir Grameen Bank16 Jharkhand Gramin Bank17 Karnataka Vikas Grameena Bank18 Kashi Gomti Samyut Gramin Bank19 Kaveri Grameena Bank20 Kerala Gramin Bank21 Madhyanchal Gramin Bank22 Maharashtra Gramin Bank23 Malwa Gramin Bank

Sl. No.

Name of the bank

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

Annex IIProfile of Complaints

Sr. No. Nature of Complaints 2012-13 2013-14

1 Deposit Accounts 139 171

2 Credit Cards 69 88

3 Pension 5 6

4 Tariff Schedule & Service Charges 15 18

5 Cheque Collection/Clearing Cycle – Delayed Credit 15 8

6 ATM/Debit Cards 21 19

7 CIBIL Records 9 6

8 Compensation Policy 0 1

9 Harassment by Recovery Agents 18 3

10 Loans & Advances 116 118

11 Insurance Products 1 1

12 Miscellaneous 66 73

Total 474 512

Statement of Accounts for the year

2013-14


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M/s Gokhale & Sathe 308/309, 3rd FloorChartered Accountants Udyog Mandir No.1 7-C, Bhagoji Keer Marg Mahim, Mumbai 400 016 Tel: 022-43484241

Auditors’ Report

We have audited the Balance Sheet of Banking Codes and Standards Board of India as at 31st March 2014 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 2014 and

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

For M/s. Gokhale & SatheChartered Accountants

FRN:-103264W

Sd./- (Uday Sathaye) Place: Mumbai PartnerDate: May 9, 2014 (Membership No.: 35107)


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BANKING CODES AND STANDARDS BOARD OF INDIABalance Sheet as on March 31, 2014

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

Year ended March

31, 2013(`)

FUNDS & LIABILITIES Year endedMarch 31, 2014

(`)

Year ended March

31, 2013(`)

PROPERTY & ASSETS Year ended March 31, 2014

(`)

Trust Funds or Corpus — Immovable Properties —

167,241,000 Balance as per last Balance Sheet 167,241,000 — Fixed Assets (Net of Depreciation) —

Add: Contribution received during the year 23,488,000 190,729,000 Computer and Peripherals 40,590

Other Earmarked Funds — Furniture & Fixtures

21,996,343 Public Awareness Fund 21,996,343 Immovable Properties — —

Investments

—Advance from Member Banks- Membership Fee for 2014-15 11,540,000 35,835,312 Govt Securities(Cost) (Annex I) 35,835,312

— Loans (Secured or unsecured) — —

317,541 Advance from RBI 6,292,527 Advances- — —

15,317,136 Outstanding Publicity Expenses — To others - — —

— Professional Fees Payable 82,162 59,890 Tax Deducted at Source 112,677

312,600 TDS A.Y 2013-14 — 6,054 Premium on GOI Securities 4,696 117,373

— TDS A.Y 2014-15 9,130 4,095,660 Recoverable from RBI for Publicity Expenses —

4,690 Interest on TDS A.Y 2013-14 — 138,536,962 Fixed Deposits with Banks (Annex II B) 174,137,637

Interest Accrued

19,431,072 On Fixed Deposits with banks 15,652,088

1,187,968 On Government of India Securities 1,187,968 16,840,056

6,036,392Cash & Bank Balances (Annex II A) 3,678,194

205,189,310 Total 230,649,162 205,189,310 Total 230,649,162

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

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

Place: MumbaiDate: May 9, 2014

As per our report of even date

M/s.Gokhale & SatheChartered AccountantsFirm Regn. No. 103264W

Sd./-(Uday Sathaye)PartnerMembership No.35107

Place: MumbaiDate: May 9, 2014

Notes on Accounts


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Annex-I

BANKING CODES AND STANDARDS BOARD OF INDIASchedule of Investments belonging to the Trust as on March 31. 2014

(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, 2013)

(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 (2013-14) —Decrease during the year (2013-14) —

Total at the end of the year (as on March 31, 2014) 36,780,000 35,835,312

Annex-II

BANKING CODES AND STANDARDS BOARD OF INDIA Annexure to Balance Sheet as on March 31, 2014

(Amount in Rupees)

As on March 31, 2013

Bank Accounts As on March 31, 2014

In Savings Account 5,718,852 - ICICI Bank 3,464,579

In Current Account 317,540 - Central Bank of India 213,615

6,036,392 Total (A) 3,678,194

In Fixed Deposits 258,617 - Karur Vysya Bank - 4,228,283 - City Union Bank - 19,876,475 - Laxmi Vilas Bank 5,000,000 30,474,170 - State Bank of Mysore 49,615,632 15,000,000 - Vijaya Bank 75,400,000 68,699,417 - State Bank of Tranvancore 44,122,005

[All accounts in the name of Banking Codes and Standards Board of India] 138,536,962 Total (B) 174,137,637

144,573,354 177,815,831


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

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

Place: Mumbai Place: MumbaiDate: May 9, 2014 Date: May 9, 2014


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BANKING CODES AND STANDARDS BOARD OF INDIAIncome & Expenditure Account for the year ended March 31, 2014

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

Year ended March

31,2013 (`)

EXPENDITURE Year ended March

31, 2014 (`)

Year ended March

31, 2013 (`)

INCOME Year endedMarch 31, 2014

(`)

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

Repairs and maintenance 51,616 By Interest

— To Establishment Expenses 10,763,698 2,788,756 On Securities 2,788,756

— To Remuneration to Trustees 2,829,055 71,267 On Savings Bank account 110,748

— To Legal Expenses — 15,941,627 On Fixed Deposits with banks 15,793,530 18,693,034

— To Audit Fees 28,090 13,226 On Income Tax Refund —

— To Contribution and Fees — — By Dividend —

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

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

4,690 To Miscellaneous expenses 28,480 By Miscellaneous receipts 10

— To Depreciation 24,143 7,785,669 By Transfer from Reserve-Public Awareness Fund

—

— To Amount Transferred to Reserves —

26,594,497 To expenditure on the objects of the trust 12,955,660

26,600,545 Total 26,682,100 26,600,545 Total 26,682,100


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

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


Notes on Accounts


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Notes forming part of Accounts for the year ended March 31, 20141. The Financial Statements are prepared on Accrual Basis.

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 grant from Reserve Bank of India. As a result, there is no surplus or deficit in Income & Expenditure Account.

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 `62,92,527/- is shown as advance on the Liability side in Balance Sheet as against `3,17,541/- at the beginning of the year.

4. Corpus Fund

As per the funding proposal agreed to by 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. Previous Year’s figures

The corresponding figures for the previous year are re-grouped / re-classified, wherever necessary. Certain expenses being borne by RBI till previous year are not reflected in the Previous Year column.


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 A

BANKING CODES AND STANDARDS BOARD OF INDIA

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