The Banking Codes and Standard Board of India (BCSBI) has come to the rescue of customers, especially the small ones, in a bid to cut the confusion and usher in transparency to ensure everyone knows what they are getting into by bringing certain changes in the code which is considered to be a reference document for customers, listing their rights.
In BCSBI’s words these are, “Minimum standards of banking practices for banks to follow when they are dealing with individual customers.”
BCSBI is an independent watchdog monitoring whether banks adhere to adopted norms while delivering services.
Till now there was unnecessary confusion created by the complicated nature of terms and conditions enumerated in extra small print by banks. This did not allow customers to be really aware of how much leeway they have in dealing with the bank, nor about how profligacy may turn their relationship from a client to a defaulter or worse.
Now, BCSBI has revised the code for banks to bring about transparency in the entire banking system for customers. Therefore, if the banks are at fault for falling short of their commitments, then they would be directly held accountable for that.
The Reserve Bank of India is well aware of the discrepancies and has gone on record to say that though big customers can flex their muscle with the banks, it is the retail customer who bears the brunt of proceedings when things go wrong somewhere along the line. The revised Code and aims at helping these small customers.
Normally, the terms and conditions for credit cards and loans run into many, many pages. But from now, banks would have to put up front the snapshot detailing the most important terms and conditions, which would ensure customers know as much as possible about the product and the transaction they are looking to complete.