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Annual Report2012-13

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 2012-13Banking Codes and Standards Board of India

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ANNUAL REPORT OF THE BANKING CODES AND STANDARDS BOARD OF INDIA (BCSBI)

2012-13

Banking Codes and Standards Board of India (BCSBI) was set up seven years ago to create an institutional mechanism to monitor and measure the gaps in customer service of banks to the retail customers. The BCSBI has come into existence on the recommendation of the Committee on Procedures and Performance Audit of Public Services (CPPAPS) headed by Shri S S Tarapore. BCSBI ensures that banks adhere to Codes and Standards voluntarily adopted by banks for fair treatment of their customers. The Codes and Standards are a charter of rights of the retail / MSE customers. BCSBI is an independent body to monitor and review the services of banks in accordance with commitments given in such Codes and Standards. The objective of setting up the BCSBI is to ensure fair treatment of customers. BCSBI has put in place an institutional mechanism to effectively monitor and enforce the compliance with such Codes and Standards. BCSBI is also spreading awareness of the organisation and the Codes among the customers, bank officials and the general public. BCSBI continued to carry out publicity by advertisement in newspapers, by campaigns through TV and Radio. 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 a Conference of Training Heads of banks at Pune and a Meeting of Controlling Heads of bank branches in Gujarat to impress upon these senior officials of banks the need to make concerted efforts to implement provisions of the Codes.

Governing Council

The Governing Council, reconstituted in December 2011, which is vested with the general supervision, direction and control of the working of BCSBI, held nine meetings during the year 2012-13. Several new ideas and initiatives like Code Monitoring Studies, identification of thrust areas and drawing up of annual action plans were proposed by the Members and introduced during the year.

Membership

During the year, one foreign bank, one public sector bank and 18 Regional Rural Banks (RRBs) have been enrolled as members of the BCSBI. With these additions and merger of certain RRBs, total number of members stood at 126 as on March 31, 2013. In addition, membership of two more banks is in process. 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 branches to assess implementation of the Codes

BCSBI as an independent and autonomous body has instituted a mechanism to monitor and periodically assess and evaluate the extent of compliance of banks to the Codes and


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Standards adopted by them on an on-going basis. In this regard, besides obtaining from member banks a self certified Annual Statement of Compliance (ASC) in which the banks declare the status of compliance with various provisions of the Codes, BCSBI undertakes visits to select branches of banks to examine implementation of the provisions of the Codes. Findings of branch visits are studied keeping in view the disclosures in the ASC. The gaps, if any, are deliberated in detail in the Governing Council and the reasons for wide gaps in implementation of the Codes are then taken up with the banks concerned for remedial action as decided by the Governing Council. During the year under review, in a few cases, the matter was discussed with the Top Management of concerned banks by the Members of the Governing Council. During these meetings, the need for increased efforts to ensure that the Codes are implemented is emphasised.

As mentioned in the last Annual Report, the previous round of branch visits were undertaken in November 2011-February 2012 during which BCSBI officials / authorised representatives visited 2000 branches and 83 loan processing centres of 40 banks, spread over 47 cities across India. We now propose to undertake another round of branch visits / visits of centralised processing centres during 2013-14. The coverage is proposed to be enlarged by visiting 3000 branches and a few centralised processing centres of 48 member banks spread across 60 locations. As in the past, the findings will be shared with the concerned banks so that effective measures to improve adherence to the Codes can be taken by the banks.

Code Monitoring Studies – Deposit Accounts

The Governing Council, BCSBI had desired that BCSBI should carry out branch visits / mystery shopping around select themes relating to Code provisions at regular intervals and that these visits may be confined to one or a few select centres. Accordingly, a Study relating to implementation at grassroot level of the provisions of the Code, as also the practices followed by the branches of member banks relating to different aspects of Deposit Accounts was carried out during the year at six centres in the States of Maharashtra and Gujarat, viz. Kolhapur, Ahmednagar, Solapur, Valsad, Navsari and Bhavnagar. Additionally, a few branches in Mumbai and the vicinity, i.e. Vasai, Virar and Navi Mumbai were also covered. For the purpose of study, BCSBI Officials had visited select branches to verify the position and gather information covering aspects relating to dissemination of information required by customers while opening accounts, various issues relating to nomination facility like giving acknowledgement, recording fact of nomination on Passbook/FDR, recording name of the nominee in Passbook/FDR, if desired by the customer etc. The study also covered matters concerning Fixed Deposits, such as obtaining maturity instructions, giving notice of maturity in the absence of disposal instructions from customers, terms and conditions regarding premature withdrawal, etc. Other areas covered by the study comprised of matters relating to inoperative accounts like issue of notice before conversion, levy of charges, availability of copies of Codes, etc. The findings of the study were shared with RBI. The observations were also taken up with the concerned banks for initiating necessary corrective steps in the matter.


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Study of Charges

The Governing Council, BCSBI had also desired that a study of charges levied by banks on certain basic services provided to retail customers be carried out with a view to ascertain whether the practices followed by banks while prescribing charges are in accordance with the guidelines issued by the Reserve Bank of India (RBI). Accordingly, an in-house study of charges levied by banks for certain basic services, viz. penalty levied for non-maintenance of minimum balance in basic banking accounts, account closure charges and charges for issue and cancellation of DDs, etc. was carried out during the year. The study was based on the data relating to service charges, as available on the websites of member banks. Some of the important findings/ suggestions made in the Study Report related to levy of penalty in the case of persistent default in maintenance of minimum balance in the accounts till the entire balance in the account is exhausted, charges levied for closure of accounts after one year from the date of opening, relatively high charges for cancellation of DDs/POs, etc. The findings of the Study Report were shared with RBI and IBA.

Based on the observations made by RBI, a further study on the subject was also carried out by going through records at Corporate Offices of select member banks. Aspects such as whether the pricing of products and services was truly transparent and non-discriminatory and fair communication was made in this regard by banks, whether there was an element of cross subsidization in favour of the privileged classes and was the pricing based on cost, competition or was it simply arbitrary in nature, etc. were covered in the new study. The findings of the said study have since been shared with RBI.

Resolution of Systemic Issues

As in the past, BCSBI continued to receive complaints directly from customers. These complaints as also Awards issued by Banking Ombudsmen and decisions of Appellate Authority under Banking Ombudsman Scheme were examined at BCSBI to see if they are indicative of any deficiencies of systemic or procedural nature.

Among the systemic issues resolved during the year one related to the bank being advised to modify the tariff schedule to show clearly free SMS alerts for transactions mandated by RBI and SMS for other transactions which are chargeable. Another case involved a bank being urged to put in place a system for intimating credit card customers’ full details about their dues when the bank is selling the credit card receivables through a securitisation deal to another entity. Yet another issue pertained to bank modifying its system to ensure that internet banking facility is provided to a customer only for the account he has requested for and not for all the accounts of the customer opened under the same customer ID.

Code of Bank’s Commitment to Customers

The Code of Bank’s Commitment to Customers (Code) launched on July 1, 2006 was revised in 2009 and has now been taken up for the next review. Since the last review of the Code,


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the Reserve Bank of India has initiated several steps to improve customer service. Besides, the Report of the Committee on Customer Service in Banks (Damodaran Committee) has made several recommendations for the betterment of customer service. Suggestions for enhancements in the Code were called from IBA, RBI and member banks. Suggestions were also invited from all stakeholders through a notice on our website.

In the current review, issues like security in transactions undertaken on electronic platforms like ATMs, Internet, mobile banking etc. are being considered for inclusion. To extend the scope of activities of the organized financial system to include within its ambit weaker sections and low income groups, a separate chapter on ‘Financial Inclusion’ is also being incorporated in the Code. It is also proposed to have a section in the revised Code that will address the needs of Senior Citizens.

A Working Group comprising of representatives from RBI, IBA and some member banks under the Chairmanship of CEO, BCSBI has been constituted to study the suggestions / opinions received from different sources as also to interact with consumer associations / fora to formulate the revised Code.

Code of Bank’s Commitment to Micro and Small Enterprises

The Code of Bank’s Commitment to Micro and Small Enterprises (MSE Code) released on May 31, 2008 was reviewed keeping in view the need to bring about an enhancement in the minimum standards of banking practices / services relating to MSEs, a sector which plays a very important role in the economy. Suggestions received from the Reserve Bank of India, Indian Banks’ Association, member banks, industry associations, etc. were considered during the process of review. A Core Group chaired by the Chief Executive Officer of BCSBI with representatives from RBI, IBA and member banks was constituted to deliberate on issues that needed to be included in the revised MSE Code. All suggestions received were also examined by the Core Group and the revised MSE Code was formulated and approved by the Governing Council of the BCSBI. The revised MSE Code has since been adopted by member banks. Through the revised MSE Code, banks are committed to greater levels of transparency and enhanced customer service and customer education.

Credit Counselling Initiative

The Credit Counselling service was an initiative taken up by BCSBI to provide free counselling to individuals and MSE customers of member banks whose credit exposure does not exceed Rs.50 lakh. The Cell commenced its credit counselling services with effect from 1st October 2009. The Cell has been providing counselling services to various categories of individuals such as those with credit card dues, borrowers availing personal loans, housing loans, education loans as also micro and small enterprises that have availed loans from member banks.


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Chairman, BCSBI addressing the participants at the Customer Awareness programmeorganised by Canara Bank at New Delhi

Chairman, BCSBI addressing the participants at the Town Hall Meet organised by Andhra Bank at Lucknow.(R-L) Shri S K Kalra, Executive Director, Andhra Bank and Shri Vinay Varma, Zonal Manager, Lucknow.


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A section of the participants at the Conference of Training Heads held at Pune.

A section of the participants at the Meeting of Controlling Heads of member banks held at Ahmedabad.


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Ms. N M Shah,Senior Vice President addressing participants at the awareness programmeorganised by erstwhile Hadoti Kshetriya Gramin Bank at Kota.

Shri P B Vaze, Senior Vice President, BCSBI addressing officials of Mewar Aanchalik Gramin Bank at Udaipur.


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A section of the participants at the Customer Meet at Sonepat, Haryana

Shri R C Arora, Senior Vice President, BCSBI addressing participants at the Customer Meet at Sonepat, Haryana. (L to R) Shri Rohit Jain, General Manager, Reserve Bank of India,

Ms. Kiran Grover, General Manager, Punjab National Bank, Shri R Rajeshwar Rao, Banking Ombudsman, New Delhi, Shri G Mallikarjun, Deputy General Manager, Reserve Bank of India.


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Shri P K K Krishnan, Senior Vice President, BCSBI addressing the participants at the Town Hall Event at Belgaum.Also seen is Shri Palanisamy, Banking Ombudsman, Karnataka (seated 4th from left) and other senior officials of banks.

A section of the participants at the Customers Meet organised by State Bank of Travancore at Thiruvananthapuram


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BCSBI At A Glance

2011-12 2012-13

Members of BCSBI 115126

(after merger of some RRBs)

Banks admitted as members during the year 6 20

Applications in process for membership 16 2

Workshops / Conferences / seminars held / participated in 12 26

Town Hall Meetings participated in 3 22

Participation in Customer Awareness Programmes 12 9

SLBCs addressed / MSE meets 2 2

Branches visited for Code Monitoring Studies on Deposit accounts – 112

Credit Counselling cases handled 212 165

Complaints received and dealt with 484 474

Spreading Awareness of the Codes

BCSBI continued its efforts to spread awareness of bank customers and bank officials about its role and the provisions of the Codes and Standards, so that Codes are implemented in true spirit. During the year, the Chairman and the CEO participated in Customer Meets organised by banks at Pune, New Delhi, Chandigarh, Ahmedabad and Lucknow. Other BCSBI officials participated in a number of Town Hall Meetings and Awareness Programmes organised by Banking Ombudsmen and banks. We also participated in the Customer Service Programmes organised by Indian Institute of Banking and Finance (IIBF) at a few centres. BCSBI also participated in the Seminar for Micro and Small Enterprises organised by RBI at Aurangabad and Malegaon. Apart from the above, faculty support to National Institute of Bank Management, Pune and College of Agricultural Banking, Pune in programmes on Retail Lending and Financial Literacy, respectively, was also provided.

Conference of Training Heads of Banks

A Conference of Training Heads of member banks was organised at College of Agricultural Banking, Pune on December 21, 2012. The Conference was part of our intervention with the senior officials of member banks who are engaged in devising training strategy and responsible for oversight of training implementation. It was attended by training heads of 38 banks. The Chairman and the CEO urged the training functionaries to review their training plan and make it comprehensive to ensure that awareness of the provisions of the Codes, particularly among Officers and front line staff is enhanced.


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Workshop of Controlling Heads of Banks in Gujarat

BCSBI held a Workshop of Regional and Zonal Heads of member banks in Gujarat on February 8, 2013 at Ahmedabad to explain to them the important role they could play in disseminating information about the commitments under the Codes amongst the staff in the branches under their control in Gujarat so that the customers, in turn, get better service. The Workshop was addressed by the Chairman and the CEO of BCSBI, Shri Sudarshan Sen, Regional Director, Reserve Bank of India, Ahmedabad, Shri D G Kale, General Manager, Customer Service Department, RBI, Central Office and others.

Publicity Campaign

BCSBI, in December 2012 launched a media campaign, through TV, Print, Radio and Internet, to create / enhance awareness about the Codes among customers. The campaign was aimed at reaching out to customers across the country and was carried out in multiple languages. The print media campaign involved the publication of advertisements in 70 newspapers and the radio ads were broadcast across 47 centres. The TV commercial was telecast on 23 TV channels. Ads on Internet appeared on MoneyControl.com, Google.com and Yahoo.in. Since the launch of the campaign, we have been receiving a number of queries about the Codes. We have also been receiving requests from customers for copies of the Codes that their banks have not been able to provide.

BCSBI Newsletter – ‘Customer Matters’

The newsletter ‘Customer Matters’ launched in April 2009, continues to be the medium for increasing public awareness on contemporary banking issues, initiatives by the RBI in the field of customer service; exemplary decisions taken under the Banking Ombudsman Scheme and by various Consumer Fora. It also keeps the readers updated regarding the activities undertaken by BCSBI in the field of customer awareness and customer service. The newsletter is available on BCSBI’s website and is also made available to all member banks.

BCSBI Website

All information regarding BCSBI, its activities and the text of the Codes in English, Hindi and regional languages are available on BCSBI’s website www.bcsbi.org.in In order to make the website more pro-active, informative and user friendly, a revamp of the website has been undertaken. The new website of BCSBI will be launched shortly.

Funds Position

As per the funding arrangement agreed upon 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. Accordingly, during the year, BCSBI has expended an amount of Rs.265.94 lakh out of its interest income. During the year an amount of Rs.77.86 lakh (viz. Rs.27.99 lakh and Rs.49.87 lakh transferred in 2007-08 and 2008-


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09, respectively) has been withdrawn from the Public Awareness Fund and utilized for the purpose. Entire contribution made by the member banks in the form of registration fees and membership fees has been credited to the Corpus as hitherto desired by them.

As on March 31, 2013, the investment of Corpus Fund and Public Awareness Fund made in accordance with the Investment Policy, aggregated Rs.1892.37 lakh comprising of Rs.358.35 lakh in Government Securities and Rs.1534.02 lakh in term deposits (including interest accrued and outstanding) with member banks.

Way Ahead

Awareness of customers and bank officials about Banking Codes and Standards adopted by member banks is still not satisfactory. We will, therefore, continue to adopt a multi-pronged strategy to increase awareness of customer rights. At the same time, keeping with the changes in banking activities, the Code of Bank’s Commitment to Customers will be revised.

In order to have a focused approach towards the various functions of BCSBI and to map out proper direction and move to a more systematic planning, budgeting and monitoring framework, the activities of BCSBI have been grouped into 5 Strategic Thrust (ST) areas. This will also facilitate measurement of progress and outcome of our efforts. The Thrust Areas identified are as follows:

ST 1 : Identification of Customer Problems and Prioritization for Intervention by BCSBIST 2 : Directed Study SeriesST 3 : Code Development, Compliance Monitoring and Action.ST 4 : Improving Awareness of Codes among CustomersST 5 : Building Dialogue and Relationship with Members at Senior Levels.

An annual action plan, broken down into quarters, has been drawn up in order to monitor and measure the outcomes.

Acknowledgements

BCSBI is thankful to Reserve Bank of India for their continued support both financially and by associating us in Town Hall Meetings and Awareness Programmes of Banking Ombudsmen. BCSBI also wishes to thank IBA 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 & 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 Tamilnad Mercantile Bank Ltd.54 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 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 Nagar Urban Cooperative Bank Ltd.3 Nagpur Nagarik Sahakari Bank Ltd4 Nutan Nagarik Sahakari Bank Ltd.5 Punjab and Maharashtra Cooperative Bank Ltd.6 Thane Bharat Sahakari Bank Ltd.7 The Bharat Cooperative Bank (Mumbai) Ltd.8 The Cosmos Cooperative Bank Ltd.9 The Karad Urban Cooperative Bank Ltd.10 The Saraswat Cooperative Bank Ltd.11 The Shamrao Vithal Cooperative Bank Ltd


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Sl. No.

Name of the bank

Regional Rural Banks1 Allahabad U P Gramin Bank2 Andhra Pragathi Grameena Bank3 Aryavart Kshetriya Gramin Bank4 Ballia-Etawah Gramin Bank5 Baroda Gujarat Gramin Bank6 Baroda Rajastha Kshetriya Gramin Bank7 Baroda Uttar Pradesh Gramin Bank8 Bihar Gramin Bank9 Chaitanya Godavari Grameena Bank10 Central Madhya Pradesh Gramin Bank11 Chhattisgarh Gramin Bank12 Deccan Grameena Bank13 Haryana Gramin Bank14 Himachal Gramin Bank15 GurgaonGramin Bank16 Jaipur Thar Gramin Bank17 J & K Gramin Bank18 Karnataka Vikas Grameena Bank19 Kashi Gomti Samyut Gramin Bank20 Kaveri Grameena Bank21 Krishna Grameena Bank22 Madhyanchal Gramin Bank23 Maharashtra Gramin Bank

Sl. No.

Name of the bank

Regional Rural Banks24 Malwa Gramin Bank25 Meghalaya Rural Bank26 Mewar Aanchalik Gramin Bank27 Narmada Jhabua Gramin Bank28 Pallavan Grama Bank29 Pandyan Grama Bank30 Parvatiya Gramin Bank31 Pragathi Gramin Bank32 Prathama Bank33 Puduvai Bharathiar Grama Bank34 Purvanchal Gramin Bank35 Saptagiri Grameena Bank36 Sarva U P Gramin Bank37 Saurashtra Gramin Bank38 Shreyas Gramin Bank39 South Malabar Gramin Bank40 Surguja Kshetriya Gramin Bank41 Uttarbanga Kshetriya Gramin Bank42 Uttar Bihar Gramin Bank43 Uttarakhand Gramin Bank44 Utkal Grameena Bank45 Vananchal Gramin Bank46 Vidharbha Konkan Gramin Bank

Annex IIProfile of Complaints

Sr.

No.

Nature of Complaints 2011-12 2012-13

1 Deposit Accounts 112 139

2 Credit/Debit Cards 80 69

3 Pension 3 5

4 Tariff Schedule & Service Charges 7 15

5 Cheque Collection/Clearing Cycle 8 15

6 ATM / Debit Cards 3 21

7 CIBIL Records – 9

8 Compensation Policy – –

9 Harassment by recovery agents – 18

10 Loans & Advances 64 116

11 Insurance Products – 1

12 Miscellaneous 207 66

Total 484 474

Statement of Accounts for the year

2012-13


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gokhale & sathe (regd.) 302/303, Udyog Mandir No. 1,chartered accountants 7-C, Bhagoji Keer Marg, Mahim , Mumbai 400 016 Tel.:(22) 43484242 Fax:(22) 43484241 Email: [email protected]

Auditors’ ReportIndependent Auditor’s Report To the Members of The Banking Codes & Standard Board of India.Report on the Financial StatementsWe have audited the accompanying financial statements of Banking Codes & Standard Board of India, which comprise the Balance Sheet as at 31st March 2013, and the Income & Expenditure Account for the year then ended, and notes forming part of accounts and other explanatory information.Trustee’s Responsibility for the Financial StatementsTrustees are responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Trust in accordance with the accounting principles generally accepted in India. This responsibility includes the design, implementation and maintenance of internal controls relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.Auditors’ ResponsibilityOur responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Society’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the society’s internal controls. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.OpinionIn our opinion and to the best of our information and according to the explanations given to us, the financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

a. in the case of the Balance Sheet, of the state of affairs of the Trust as at 31st March 2013;b. in the case of the Income & Expenditure Account, for the year ended on that date.

For Gokhale & SatheChartered Accountants

Firm Regn. No. 103264W Sd./- (Uday Sathaye) Place: Mumbai PartnerDate: May 16, 2013 (Membership No.: 35107)


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BANKING CODES AND STANDARDS BOARD OF INDIABalance Sheet as on March 31, 2013

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

Yearended

March 31, 2012

FUNDS & LIABILITIES Yearended

March 31,2013

Yearended

March 31, 2012

PROPERTY & ASSETS Yearended

March 31,2013

Trust Funds or Corpus — Immovable Properties —

151,190,000 Balance as per last Balance Sheet 151,190,000

Add: Contribution received during the year 16,051,000 167,241,000 Investments

35,835,312 Govt Securities(Cost) 35,835,312

— Other earmarked funds — Furniture & fixtures —

Public Awareness Fund — Loans (Secured or unsecured) —

29,782,012 Balance as per last Balance Sheet 29,782,012 — Advances- —

Less: Transfer to Income & expenditure account 7,785,669 21,996,343 To others-

141,710 Tax Deducted at Source 59,890

7,412 Premium on GOI Securities 6,054 65,944

29,836 For advances from RBI 317,541 Interest Outstanding

9,890,996 On Fixed Deposits with Banks 19,431,072

— Outstanding Publicity Expenses 15,317,136 1,187,968 On Govt. Securities 1,187,968 20,619,040

— TDS AY 2013-14 312,600 Cash & Bank Balances

— Interest on TDS AY 2013-14 4,690 133,938,192In Current account & fixed deposit account 144,573,354

258 Stamps —

— Recoverable from RBI 4,095,660

181,001,848 Total 205,189,310 181,001,848 Total 205,189,310

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

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

Place: MumbaiDate: May 16, 2013

As per our report of even date

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

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

Place: MumbaiDate: May 16, 2013


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Annex-I

BANKING CODES AND STANDARDS BOARD OF INDIASchedule of Investments belonging to the Trust as on March 31. 2013

( 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

Remarks

1 2 3 4 5 6 7

At the beginning of the year(as on April 1, 2012)

(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 (2012-13)

—

Decrease during the year (2012-13)

—

Total at the end of the year (as on March 31, 2013) 36,780,000 35,835,312

Annex-II

BANKING CODES AND STANDARDS BOARD OF INDIA Annexure to Balance Sheet as on March 31, 2013

(Amount in Rupees)

As on March 31, 2012

Bank Accounts As on March 31, 2013

In Savings Account 729,017 - ICICI Bank 5,718,852

In Current Account 12,987 - Central Bank of India 317,540

In Fixed Deposits 3,252,533 - Karur Vysya Bank 258,617 3,716,327 - Yes Bank —

26,109,509 - City Union Bank 4,228,283 19,876,475 - Laxmi Vilas Bank 19,876,475 27,191,555 - State Bank of Mysore 30,474,170

— - Vijaya Bank 15,000,000 43,777,411 - State Bank of Tranvancore 68,699,417

9,272,378 - Central Bank of India —[All accounts in the name of Banking Codes and Standards Board of India]

133,938,192 144,573,354


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 16, 2013 Date: May 16, 2013


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BANKING CODES AND STANDARDS BOARD OF INDIAIncome & Expenditure Account for the year ended March 31, 2013

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

Yearended

March 31, 2012

EXPENDITURE Yearended

March 31, 2013

Yearended

March 31, 2012

INCOME Yearended

March 31,2013

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

— To Establishment expenses — By Interest

— To Remuneration to trustees — 2,788,756 On Govt. Securities 2,788,756

— To Legal expenses — 48,216 On Bank Account 71,267

— To Audit fees — 11,980,115 On Fixed Deposits with Banks 15,941,627

— To Contribution and fees — 5,120 On Income tax refund 13,226 18,814,876

To Amount written off — By Dividend —

1,358 Premium on Govt Securities 1,358 — By Donation in cash or kind —

— To Interest on Expenses(TDS) 4,690 — By Grants —

440 To Miscellaneous expenses — 500,000 By Transfer from Reserve –Public Awareness Fund

7,785,669

— To Depreaciation —

To Amount Transferred to Reserves

4,884,291 Public Awareness Fund —

10,436,118 To Expenditure on objects of the Trust 26,594,497 — By Deficit carried over to Balance Sheet

—

— To Surplus carried over to Balance Sheet —

15,322,207 Total 26,600,545 15,322,207 Total 26,600,545


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



20

Notes forming part of accounts for the year ended 31 March 20131. 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 and Expenditure Account shows only the expenditure incurred by BCSBI out of interest income and appropriation from Public Awareness Fund. The expenses borne by the Reserve Bank of India do not appear therein. The Reserve Bank has also provided furnished Office accommodation & Office equipments free of cost.

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

closing balance of ` 3,17,541/- is shown as advance on the liability side in Balance Sheet as against ` 29,836/- 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 them 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 ` 77,85,669/- out of Public Awareness Fund to 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 A

BANKING CODES AND STANDARDS BOARD OF INDIA

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