Annual Report

2009-10

BANKING CODES AND STANDARDS

BOARD OF INDIA
www.bcsbi.org.in
PUBLISHED BY

B.M. Mittal
Chief Executive Officer
Banking Codes and Standards Board of India
C-7, Reserve Bank of India Building
Bandra Kurla Complex
Mumbai- 400051

Phone : (022) 26573715

Fax : (022) 26573719
 Banking Codes and Standards Board of India
Governing Council

Chairman

K.J. Udeshi

Members

M. M. Chitale V. P. Shetty
Chartered Accountant Chairman
204 and 205 Agarwal JM Financial Asset Reconstruction
Shyamkamal- Company Private Limited
A Building, Vile Parle (East) 141, Maker Chambers III,
Mumbai-400 057 Nariman Point
Mumbai-400 021

Cyrus Guzder Dr. Ajit Ranade

Chairman and Managing Director Group Chief Economist
AFL Pvt. Ltd., AFL House Aditya Birla Management
Lok Bharati Complex Corporation Pvt. Ltd.
Marol Maroshi Road 2-C, S.K. Ahire Marg, Worli
Andheri (East) Mumbai-400 030
Mumbai-400 059

B M Mittal
Chief Executive Officer
Banking Codes and Standards Board of India
C-7, Reserve Bank of India Building
Bandra-Kurla Complex
Mumbai-400 051
 Banking Codes and Standards Board of India Annual Report 2009-10

ANNUAL REPORT OF THE BANKING CODES AND STANDARDS

BOARD OF INDIA (BCSBI)
2009-10

The year 2009-10 has witnessed a surge of activities undertaken by BCSBI with a view to
increasing its membership base, raising and enhancing the standards of customer service
rendered by its member banks by evolving a revised Code of Bank’s Commitment to
Customers, reaching out to borrowers at the bottom of the pyramid who are in a debt
trap by setting up Credit Counselling services and launching a Newsletter for increasing
public awareness. This is in addition to its normal activities of monitoring of Code
compliance and dealing with systemic issues arising out of customer complaints.

Governing Council
Shri K V Subba Rao vacated the office of Chief Executive Officer and Member of Governing
Council in July 2009 consequent upon his voluntary retirement from the service of the
Reserve Bank of India. In his place, Shri B M Mittal, who was Executive Director of UCO
Bank, has been appointed with effect from November 2009. The BCSBI places on record
the invaluable services rendered by Shri K V Subba Rao.

The Governing Council, which is vested with the general supervision, direction and control
of the working of the BCSBI, held eight meetings during the year 2009-10.

Membership and Subscription

Five scheduled urban cooperative banks (UCBs) and fourteen regional rural banks (RRBs)
were admitted as members taking the total number of member banks to 91 as on April 1,
2010 and the membership of twenty two banks is in process. BCSBI is thus ensuring
that a larger section of the population is covered by the commitment of banks to provide
easy, speedy and transparent access to banking services. Names of members and banks
registered for membership are listed in Annex I & II.

BCSBI collected Rs. 107.17 lakh by way of registration and membership fee from member
banks.

Investment of Funds
As on March 31, 2010, the investments of Corpus Fund and Public Awareness Fund
made in accordance with the Investment Policy, aggregated Rs.989.16 lakh comprising
Rs.358.35 lakh in Government Securities and Rs.630.81 lakh in term deposits with
member banks. During the year, total income from investments amounted to Rs.76.59
lakh.
 Banking Codes and Standards Board of India Annual Report 2009-10

Credit Counselling
One of the important developments that took place during the year was the setting up of
a Credit Counselling Centre, manned by two senior level officers with long years of
commercial banking experience. Credit Counselling is a pro-active measure to mitigate
the woes of those borrowers who have been trapped in debt. The Centre started functioning
from the office of BCSBI at Mumbai from October 1, 2009. In keeping with BCSBI’s
objective of focusing on the financial service needs of individuals and micro and small
enterprises, the Centre provides free credit counselling services to Micro and Small
Enterprises and individual borrowers of member banks whose credit exposure does not
exceed Rs.50 lakh. The Credit Counsellors dialogue with the concerned member bank on
the debt restructuring plans etc. and the member banks on their part have extended full
co-operation to BCSBI. The centre has rendered counselling service to 240 applicants.

Review of Code of Bank’s Commitment to Customers

The Code of Bank’s Commitment to Customers was first launched on July 1, 2006. As
was required in terms of para 12 of the Code, a review of the Code was undertaken in
collaboration with the Indian Banks’ Association (IBA). During the process of review,
suggestions were invited from Reserve Bank of India, member banks of BCSBI, Banking
Ombudsmen and associations representing interests of various segments of bank
customers. Suggestions were also invited from members of the public through a notice
on the BCSBI website.

The objective of the review was to bring about enhancement in the minimum standards of
banking practices relating to customer service keeping in view the contemporary regulatory
framework, changing face of the consumers of banking services, their growing expectations,
emerging issues in customer service and on-going market developments and innovations in
the banking system. Through the revised Code – Code of Bank’s Commitment to Customers
– August 2009 banks stand committed to greater transparency, enhanced level of customer
service and a more efficient grievance redressal system at the banks.

Efforts to spread awareness of the Codes:

Publication of BCSBI Newsletter – ‘Customer Matters’
The newsletter ‘Customer Matters’ was launched in April, 2009 with the message of the
Governor, RBI that this should become an effective and useful medium to interact with
banks, members of public and other civil society organisations on an ongoing basis. The
Newsletter has tried to bring about greater public awareness on contemporary banking
issues of common interest; regulatory initiatives by the RBI in the realm of customer
service, as also exemplary decisions taken under the Banking Ombudsman Scheme. The
response to the Newsletter has been very encouraging.

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Banking Codes and Standards Board of India Annual Report 2009-10

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 Banking Codes and Standards Board of India Annual Report 2009-10

Workshops / Seminars / Conferences

Keeping in view the recent enrolment of RRBs and UCBs as members of BCSBI and to
spread awareness of the provisions of the Codes, BCSBI held on-location programmes
for CEOs and officials of all the new member banks. A Workshop for members of faculty
of banks was also held in Mumbai which was attended by 107 officials.
As Principal Code Compliance Officers (PCCOs) are a crucial link between BCSBI and
member banks, a Conference was organized for all PCCOs in March 2010.The Conference
received an overwhelming response. The Chairman, BCSBI and Members of Governing
Council were present and interacted with the participants. The Open Forum witnessed
participants discussing several systemic issues which was useful as it provided for the
dissemination of greater conceptual clarity and understanding. The issues raised by PCCOs
along with BCSBI’s comments have been placed on the BCSBI website for the guidance of
all concerned.

Shri R C Arora, Senior Vice President & Head Compliance, BCSBI (fifth from left)
addressing officials of Sarva U P Gramin Bank at Meerut.

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Banking Codes and Standards Board of India Annual Report 2009-10

Officials of Andhra Pragathi Grameena Bank at the workshop conducted by BCSBI at Kadapa.

Shri R C Arora addressing the audience at the meeting organised by FIEO at Mumbai.

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Banking Codes and Standards Board of India Annual Report 2009-10

Participants from member banks at the workshop held at the College of Agricultural Banking, Pune.

Members of the Governing Council and Senior Officials of BCSBI at the Conference of
Principal Code Compliance Officers held at Mumbai.

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 Banking Codes and Standards Board of India Annual Report 2009-10

At a glance ....

Members of BCSBI 91
Banks admitted as members during the year 19
Applications in process for membership 22
Workshops / conferences held 13
Participants 602
Banks visited to ascertain level of compliance 14
Branches of banks visited to ascertain level of compliance 73
Applicants who sought credit counselling 240
Complaints dealt 750

Monitoring of Compliance
BCSBI monitors adherence to provisions of the Codes by member banks through the
Annual Statement of Compliance (ASC) as also through visits to branches, controlling
offices, Head Offices, central processing centres and even training colleges.

Over the years there has been a perceptible improvement in several areas of customer
service e.g. transparency has increased through display of information on banks’ websites,
display of Comprehensive Notice Board at the branch, printing of address and telephone
number of the branch in the pass book, conveying all important terms and conditions in
the sanction letter etc. There has also been significant improvement in other areas such
as in the manner of collection of dues by recovery agents, timely settlement of claims of
deceased account holders, issue of standardised loan application form for MSE customers,
payment of compensation for delays in collection of cheques etc. However, there are still
several areas where customer service needs more attention. We are confident that if the
reports of senior officials’ visits to branches and the internal inspection reports reflect
correctly the gaps in customer service as committed to in the Codes and banks activate
their Branch Level Customer Service Committees and have meaningful discussions at
the level of the Customer Service Committee of the Board, the systemic gaps in customer
service could be rectified.

Complaints and their redressal

During the year under report, 750 complaints were received against member banks.
These were all forwarded for redressal to the Customer Service Department, RBI and
those complaints which indicated systemic deficiencies were followed up with the

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 Banking Codes and Standards Board of India Annual Report 2009-10

respective banks for taking corrective action e.g. BCSBI has ensured that receipts are
issued for premium collected for Savings Bank Account-linked insurance products; the
clause in the terms and conditions of credit cards which stipulated that the terms and
conditions could be changed without notice is withdrawn; the misleading and ambiguous
statement on a bank’s website relating to offering of Portfolio Management Services is
withdrawn; the unfair practice of charging higher rate of interest on the original loan
when a top up loan is sanctioned on a higher rate of interest is discontinued etc.

A profile of the complaints received is set out in Annex III.

Way Ahead

BCSBI would continue its efforts to ensure that the provisions of the two Codes, viz Code
of Bank’s Commitment to Customers and Code of Bank’s Commitment to Micro and
Small Enterprises are implemented by member banks in letter and spirit. In keeping
with the thrust on financial inclusion, BCSBI would focus greater attention on the
implementation of the commitment made by banks towards providing basic banking
facilities in urban and semi-urban areas. With the increasing number of new member
banks, BCSBI would have to devote more attention for dissemination of Codes and training
of staff of new member banks. Creating public awareness at non-metro centres on the
rights of customers vis-a-vis their banks, is also on the anvil.

BCSBI would also need to focus attention on implementation by banks of the MSE Code
and take steps to create awareness among micro and small enterprises so that they can
have access to bank finance in their day-to-day operations and in times of financial
difficulty.

Expansion of the network of Credit Counselling Centres to other metros so as to effectively

counsel bank borrowers who are in a debt trap at centres other than Mumbai is also
being planned.

Most importantly, BCSBI is reviewing its funding pattern so as to enable the institution
to take its initial step towards becoming self sustaining on the way ahead.

Acknowledgements

The BCSBI is thankful to RBI, IBA and the member banks for their support and
cooperation. In particular we are grateful to Central Bank of India, Dena Bank and Bank
of Maharashtra for the logistic support provided by them in the BCSBI’s efforts to increase
public awareness.

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 Banking Codes and Standards Board of India Annual Report 2009-10

Annex I
BCSBI members
S. No. Name of the Bank S. No. Name of the Bank
Scheduled Commercial banks Scheduled Commercial banks
01 AB Bank Ltd. 48 State Bank of Mysore
02 Allahabad Bank 49 State Bank of Patiala
03 Andhra Bank 50 State Bank of Travancore
04 Axis Bank Ltd. 51 Syndicate Bank
05 Bank of America 52 Tamilnad Mercantile Bank Ltd.
06 Bank of Baroda 53 The Bank of Rajasthan Ltd.
07 Bank of Ceylon 54 The Catholic Syrian Bank Ltd.
08 Bank of India 55 The Dhanlaxmi Bank Ltd.
09 Bank of Maharashtra 56 The Federal Bank Ltd.
10 Bank of Nova Scotia 57 The Hongkong and
11 Barclays Bank P L C Shanghai Banking Corporation Ltd.
12 BNP Paribas 58 The Jammu and Kashmir Bank Ltd.
13 Canara Bank 59 The Karur Vysya Bank Ltd.
14 Central Bank of India 60 The Lakshmi Vilas Bank Ltd.
15 Citibank N A 61 The Nainital Bank Ltd.
16 City Union Bank Ltd. 62 The Ratnakar Bank Ltd.
17 Corporation Bank 63 The Royal Bank of Scotland N.V.
18 Credit Agricole Corporate and 64 The South Indian Bank Ltd.
Investment Bank 65 UCO Bank
19 DBS Bank Ltd. 66 Union Bank of India
20 Dena Bank 67 United Bank of India
21 Deutsche Bank 68 Vijaya Bank
22 Development Credit Bank Ltd. 69 Yes Bank Ltd.
23 HDFC Bank Ltd.
24 ICICI Bank Ltd. Scheduled Urban Co-operative Banks
25 IDBI Bank Ltd. 01 Nagar Urban Co-operative Bank Ltd.
26 Indian Bank 02 Nagpur Nagarik Sahakari Bank Ltd
27 Indian Overseas Bank 03 Nutan Nagarik Sahakari Bank Ltd.
28 Indusind Bank Ltd. 04 Thane Bharat Sahakari Bank Ltd.
29 ING Vysya Bank Ltd. 05 The Bharat Co-operative Bank (Mumbai) Ltd
30 J P Morgan Chase Bank N A 06 The Cosmos Co-operative Bank Ltd.
31 Karnataka Bank Ltd. 07 The Karad Urban Co-operative Bank Ltd
32 Kotak Mahindra Bank Ltd. 08 The Saraswat Co-operative Bank Ltd
33 Krung Thai Bank P C L
34 Mashreq Bank Psc Regional Rural Banks
35 Oman International Bank S.A.O.G. 01 Allahabad U P Gramin Bank
36 Oriental Bank of Commerce 02 Andhra Pragathi Grameena Bank
37 Punjab National Bank 03 Baroda Uttar Pradesh Gramin Bank
38 SBI Commercial & 04 Chaitanya Godavari Gramin Bank
International Bank Ltd. 05 Deccan Grameena Bank
39 Shinhan Bank 06 Himachal Gramin Bank
40 Societe Generale 07 Karnataka Vikas Grameena Bank
41 Sonali Bank 08 Kashi Gomti Samyut Gramin Bank
42 Standard Chartered Bank 09 Maharashtra Gramin Bank
43 State Bank of Bikaner and Jaipur 10 Pandyan Grama Bank
44 State Bank of Hyderabad 11 Prathama Bank
45 State Bank of India 12 Purvanchal Gramin Bank
46 State Bank of Indore 13 Sarva U P Gramin Bank
47 State Bank of Mauritius 14 Saurashtra Gramin Bank

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 Banking Codes and Standards Board of India Annual Report 2009-10

Annex II
Banks which have registered for membership of the BCSBI
S. No. Name of the Bank S. No. Name of the Bank

01 American Express Banking Corporation 12 Narmada Malwa Gramin Bank

02 Aryavart Gramin Bank 13 Puduvai Bharathiar Grama Bank
03 Bihar Kshetriya Gramin Bank 14 Rajasthan Gramin Bank
04 Citizen Credit Co-operative Bank Ltd. 15 Rushikulya Gramya Bank
05 Gurgaon Gramin Bank 16 Sharda Gramin Bank
17 Shreyas Gramin Bank
06 Jaipur Thar Gramin Bank
18 South Malabar Gramin Bank
07 Jammu & Kashmir Gramin Bank
19 Surguja Kshetriya Gramin Bank
08 Jhabua-Dhar Kshetriya Gramin Bank
20 The Shamrao Vithal Co-operative
09 Jharkhand Gramin Bank Bank Ltd.
10 Krishna Grameena Bank 21 Vananchal Gramin Bank
11 Madhya Bharat Gramin Bank 22 Wainganga Krishna Gramin Bank

Annex III
Profile of Complaints
Sr. No. Nature of complaints 2008-09 2009-10

01 Deposit accounts 111 162

02 Credit/Debit Cards 205 211
03 Pension 7 7
04 Tariff Schedule & Service Charges 18 41
05 Cheque Collection/Clearing Cycle 21 30
06 Foreign Exchange Services 4 8
07 ATM related 5 49
08 Compensation Policy — 3
09 Do-not-call (unsolicited telemarketing) — —

10 Loans & Advances- Collection of dues- Security Repossession 132 161

11 Grievance Redressal mechanism 21 12
12 Miscellaneous 47 66
Total 571 750

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Statement of Accounts
for the year
2009-10
 Banking Codes and Standards Board of India Annual Report 2009-10

LOONKER & CO. 8-Dhun Mahal, Garden Road

Chartered Accountants Colaba, Mumbai 400 039
Tel : 2282 5580; 2285 6740
Mobile: 93246 14750.

Auditors’ Report
We have audited the Balance Sheet of Banking Codes and Standards Board of India as at 31st
March 2010 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 2010 and
- in the case of Income & Expenditure Account of the surplus for the accounting year
ended on that date.

For M/s. Loonker & Co.

Chartered Accountants

Place : Mumbai Sd/-

Date: May 5, 2010 (S. C. Loonker)
Partner
(Membership No:10135)

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 Banking Codes and Standards Board of India Annual Report 2009-10

BANKING CODES AND STANDARDS BOARD OF INDIA

Balance Sheet as on March 31, 2010
( As per Schedule VIII of Bombay Public Trusts Act, 1950) (Amount in Rupees)
As on FUNDS AND LIABILITES As on As on PROPERTY & ASSETS As on
March 31, March 31, March 31, March 31,
2009 2010 2009 2010

Trust Funds or Corpus — Immovable properties —

77,067,000 Balance as per last Balance Sheet 77,067,000 Investments-

Add: Contribution received during 35,839,604 Govt.securities (cost)-Annex-I 35,835,312

the year 10,717,000 87,784,000
— Furniture and fixtures —
Other earmarked funds
— Loans (Secured or unsecured) —
— Public Awareness Fund
Advances -
8,285,669 Balance as per last Balance Sheet 8,285,669
To others-
Add: Tfd. From Income & Exp. A/c 7,656,396 15,942,065
12,640 - Trade Mark 12,640
— Loans (Secured or unsecured) — 217,560 - Tax Deducted at Source 130,172
Liabilities- 1,500 - Deposit (MTNL) 2,000
152,451 For advances from RBI 86,957 8,053 - Premium on GOI Securities 10,128 154,940

Income Outstanding -
3,151,055 - Interest 4,740,810

Cash and Bank Balances-

46,273,268 - In current account or fixed
deposit account- Annex II 63,081,220
1,440 - Stamps 740 63,081,960

85,505,120 Total 103,813,022 85,505,120 Total 103,813,022

As per our report of even date

Sd/-
(K.J. Udeshi) M/s.Loonker & Co.
Chairman Chartered Accountants

Sd/- Sd/-
(B M Mittal) Partner
Chief Executive Officer Auditors
Banking Codes and Standards Board of India

Place: Mumbai Place: Mumbai

Date: May 5, 2010 Date: May 5, 2010

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 Banking Codes and Standards Board of India Annual Report 2009-10

Annex-I

BANKING CODES AND STANDARDS BOARD OF INDIA

Schedule of Investments belonging to the Trust as on March 31. 2010
( As per Part III - Schedule VIII of Bombay Public Trusts Act, 1950) (Amount in Rupees)
Date and year Kind of investments Full description such as name of the Face Value Cost Rate of Remarks
of preparation company, distinctive Nos. of shares interest
and certificates, type of shares, etc. borne by
Date of redemption or repayment investments
1 2 3 4 5 6 7
At the (i) Shares —
beginning of (ii) Bonds and Debentures —
the year (as on (iii) Deposits —
April 1, 2009) (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 2017 3,500,000 3,500,000 8.24%
36,780,000 35,835,312
Increase
during the year
(2009-10) —
Decrease
during the year
(2009-10) —
Total at the end of the year (as on March 31, 2010) 36,780,000 35,835,312

Annex-II
BANKING CODES AND STANDARDS BOARD OF INDIA
Annexure to Balance Sheet as on March 31, 2010
(Amount in Rupees)
As on Bank Accounts As on
March 31, 2009 March 31, 2010
In Savings Account
1,030,638 - ICICI Bank 4,601,214
In Current Account
123,031 - Central Bank of India 54,986
In Fixed Deposits
4,200,000 - HDFC Bank
5,300,000 - Kotak Mahindra Bank
5,000,000 - Axis Bank
3,775,000 - Citibank 4,330,169
7,100,000 - ICICI Bank 8,050,000
7,500,000 - IDBI Bank —
3,598,453 - Karnataka Bank 1,522,879
2,921,146 - Karur Vysya Bank 7,844,223
5,725,000 - Yes Bank 6,015,000
- City Union Bank 10,000,000
- Laxmi Vilas Bank 7,392,749
- State Bank of Mysore 4,900,000
- UCO Bank 4,470,000
- Vijaya Bank 3,900,000
[All accounts in the name of Banking Codes and Standards Board of India]

46,273,268 63,081,220
As per our report of even date
Sd/-
(K.J. Udeshi) M/s. Loonker & Co.
Chairman Chartered Accountants

Sd/- Sd/-
(B M Mittal) Partner
Chief Executive Officer Auditors
Banking Codes and Standards Board of India
Place: Mumbai Place: Mumbai
Date: May 5, 2010 Date: May 5, 2010

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 Banking Codes and Standards Board of India Annual Report 2009-10

BANKING CODES AND STANDARDS BOARD OF INDIA

Income and Expenditure Account for the year ended March 31,2009
[As per Schedule IX of Bombay Public Trusts Act, 1950] (Amount in Rupees)

Year EXPENDITURE Year Year INCOME Year

ended ended ended ended
March 31, March 31, March 31, March 31,
2009 2010 2009 2010

— To expenditure in respect of properties — By Rent —

— To establishment expenses — By Interest
— To remuneration to trustees — 2,759,527 - On securities 2,788,756
— Legal expenses — 2,224,528 - On bank account 4,857,779
— Audit fees — -On income tax refund 12,078 7,658,613
— To contribution and fees — — By Dividend —
To amount written off — By Donations in cash or kind —
929 - Preimum on Govt. Sec. 2,217 — By Grants —
— To Miscellaneous expenses — 1,670 By Income from other sources —
— To Depreciation — — By Transfer from Reserve —
To Amounts transferred to Reserve — By Deficit carried over to Balance Sheet —
4,984,796 - Public Awareness Fund 7,656,396
— To Expenditure on objects of the Trust —
— To surplus carried over to Balance Sheet —

4,985,725 Total 7,658,613 4,985,725 Total 7,658,613

As per our report of even date

Sd/-
(K.J. Udeshi) M/s.Loonker & Co.
Chairman Chartered Accountants

Sd/- Sd/-
(B M Mittal) Partner
Chief Executive Officer Auditors
Banking Codes and Standards Board of India

Place: Mumbai Place: Mumbai

Date: May 5, 2010 Date: May 5, 2010

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 Banking Codes and Standards Board of India Annual Report 2009-10

Notes forming part of accounts for the year ended 31 March 2010
1. The financial statements are prepared on accrual basis.
2. Expenses Borne by Reserve Bank of India
The Income and Expenditure Account does not show any expenses since all the expenses
have been borne by the Reserve Bank of India. The Reserve Bank has agreed to extend
financial support to the Board by way of meeting its full expenses for the first five years of
operation and providing furnished Office accommodation & Office equipments, etc. free
of cost at the Reserve Bank of India Building, Bandra Kurla Complex, Mumbai-400 051.
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 Rs. 86,957/- is shown as advance from Reserve Bank of India
on the liability side in Balance Sheet as against Rs.152,451 at the beginning of the year.
4. Corpus Fund
During the first five years of operation, the Board would build up its Corpus from
registration and membership fees so that when the RBI funding is phased out, the Board
would become self-financing. 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 of the Banking Codes and Standards Board of India. Therefore, the
registration fees and the membership fees are credited to the Corpus Fund, during the
first five years of operation.
5. Public Awareness Fund
The Board has transferred Rs. 76,56,396/- to the Public Awareness Fund to be spent for
this purpose within the next five years.
6. Previous Year’s figures
The corresponding figures for the previous year are re-grouped / re-classified, wherever
necessary.

As per our report of even date

Sd/-
(K.J. Udeshi) M/s.Loonker & Co.
Chairman Chartered Accountants

Sd/- Sd/-
(B M Mittal) Partner
Chief Executive Officer Auditors
Banking Codes and Standards Board of India

Place: Mumbai Place: Mumbai

Date: May 5, 2010 Date: May 5, 2010

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