| Releasing the code of banks' commitment to customers on Saturday, RBI Governor Y V Reddy said this is an area that needs special attention in India and needs to be designed in line with the banking code in UK for traders, partnerships and companies. |
| The banking code has been issued by the Indian Banks' Association in consultation with the Banking Codes and Standard Board of India and banks in India would voluntarily adopt this code. |
| The RBI has decided to reimburse the board's expenses for the first five years, after which it will be wholly funded by subscription fees from the member banks. |
| Dr Reddy said, counselling on credit and loan restructuring should also be the areas of focus. He said the banks need to work out arrangements for assisting individual customers who encounter difficulties in meeting their financial commitments. |
| The code specifies the kind of information a customer can access from the banks . Through this code, the banks have committed that information not essential for opening of accounts would be sought from prospective customers only on a voluntary basis. |
| Similarly, personal information about clients could not be passed on by the bank for commercial purposes without seeking their prior consent. |
| The banks are also bound to inform customers about any change in tariff schedule. The code also covers the activities of direct selling agents and third party products sold through the banks. |
| Banks will now have to put in place a cheque collection policy and a policy for compensating the customer for financial losses incurred due to the mistakes made by the banks. |
| The RBI has also set up a department, Customer service department, exclusively for attending to the matters relating to customer service and grievances redressal of the customers. This department will work in co-ordination with the Banking Code and Standards Board. |
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