2018 - 19 Report///AR18-19.pdf · 2020. 10. 26. · During the year under review, there have been...

2018 - 192018 - 19

Shri A C Mahajan, Chairman, BCSBI addresses the Annual General Meeting of BCSBI held on

September 5, 2018.Seated from left are Smt. Shubhalakshmi Panse, Member, Governing Council;

Shri Anand Aras, CEO, BCSBI; Shri C Krishnan, Member, Governing Council; and Shri Uday Y

Phadke, Member, Governing Council.

Shri A C Mahajan, Chairman, BCSBI and Shri Anand Aras, CEO, BCSBI along with entire staff of BCSBI on the occasion of Annual General Meeting held on September 5, 2018.

Annual Report 2018-19

BANKING CODES AND STANDARDS BOARD OF INDIA

www.bcsbi.org.in

PUBLISHED BY

Anand Aras

Chief Executive OfficerBanking Codes and Standards Board of IndiaC-7, 4th Floor, Reserve Bank of India BuildingBandra Kurla ComplexMumbai- 400051

Banking Codes and Standards Board of India Governing Council

Chairman

A C Mahajan

Members

C Krishnan Rama Bijapurkar

Shubhalakshmi Panse Uday Phadke

Anand ArasChief Executive Officer

Banking Codes and Standards Board of India

Banking Codes and Standards Board of IndiaAnnual Report 2018-19

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BANKING CODES AND STANDARDS BOARD OF INDIAAnnual Report of the activities of BCSBI during the year 2018-19

Governing Council

The present Governing Council (GC) was last reconstituted by RBI with effect from December 14, 2014 for a period of three years ending on December 13, 2017. As per BCSBI’s rules and regulations, pending the reconstitution of the GC, the present GC continued to guide the affairs of BCSBI. During the year under reporting, there has been no change in the constituent members of the GC.

The GC which is vested with the powers of general superintendence, direction and control of the affairs and funds of BCSBI, held nine meetings during the year 2018-19. Several new initiatives/ strategies with regard to Code Monitoring Studies, Identification of Thrust Areas and drawing up of Annual Action Plan, including advising member banks to hold a select number of customer awareness meets with regards to their rights, etc. were discussed in the meetings and requisite resolutions passed.

Membership

During the year under review, there have been no additions to the number of members of BCSBI which stood at 133 as of March 31, 2019. However, subsequently, membership of BCSBI stands reduced to 131 since two public sector banks viz. Dena Bank and Vijaya Bank have merged with Bank of Baroda. With this change and the fact that IDBI Bank is now a private bank, BCSBI has a total of 131 members (18 public sector banks, 22 private sector banks, 23 foreign banks, three Small Finance banks, 47 Regional Rural banks and 18 Urban Cooperative banks).

During the year under review, as per the decision of the GC, annual membership fees were not collected since the surplus available in the Public Awareness Fund along with interest earned on corpus fund was sufficient to meet the year’s expenses. Names of member banks as on March 31, 2019 are listed in Annex I.

Monitoring of Code Implementation and visits to bank branches to assess implementation of the Codes

BCSBI, apart from its main task of evolving and periodic review of Codes for customer service in banks, had undertaken a study on monitoring of implementation of the Code of Bank’s Commitment to Customers at the level of bank branches. This was done with a view to evolve a framework of standardized best practices to raise the level of Code compliance as a step towards better customer service. Some of the notable measures reported by Banks were: implementing a check list cum questionnaire for verification of compliance with important provisions, mystery shopping at Branches on a regular basis, branch audits of Customer Service by service quality teams and setting up of a Compliance team which proactively interact with all the branches for effective implementation of the Codes.

BCSBI has also been monitoring the implementation of Code provisions by examining Annual Statement of Compliance (ASC) which itself is a self-certified statement submitted by banks covering status of implementation of some of the important provisions of the Codes as at the end of December. Annual Statements of Compliance (ASC) as on December 31, 2018 have been received from the member banks and examined.

Banking Codes and Standards Board of India Annual Report 2018-19

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Code of Bank’s Commitment to Customers

The “Code of Bank’s Commitment to Customers” was revised in January 2018.The revised Code captures the essence of the Charter of Customer Rights and includes the recent regulatory changes with regard to limited liability in respect of unauthorized electronic transactions and facilities to senior citizens. All our member Banks have committed to implement the same in letter and spirit.

Preparation for Code Compliance Rating Survey 2018-19 for Public and Private Sector Banks and select Urban Co-operative Banks

(a) Identification of Banks: A total of 47 banks have been identified, comprising 21 Public Sector Banks,18 Private Sector Banks,3 Foreign Banks and 5 Urban Cooperative Banks.

(b) Branch selection: Approximately 3000 branches from 100 centers have been identified on pan India basis for the branch visits.

However, due to recent developments, the proposed survey will not be conducted by BCSBI.

Review and Revision of Code of Bank’s Commitment to Micro and Small Enterprises

The Governing Council decided to keep the proposal for review of the MSE Code in abeyance on the ground that some changes were expected with respect to Micro and Small Enterprises including the definition of MSE, priority sector classification, hike in CGTMSE guarantee limits, etc.

Thematic Studies on the Codes and Customer Service related matters

BCSBI undertook certain studies around select themes relating to Code provisions and also certain other important customer service related areas. During the year 2018-19, BCSBI conducted the following studies:

(i) Study of charges levied by Banks for SMS alerts to individual customers

A comparative study of charges levied by Banks for SMS alerts to individual customers for mandated and non-mandated transactions was undertaken. The scope of the study was to bring clarity about charges levied by Banks with reference to different types of SMS alerts, relaxations offered to special category of customers namely rural area customers, premium depositors and senior citizens. The scope of the study was also to find out if such service is offered to BSBDA holders and if so, whether the same is free or charged. Forty-five banks comprising 21 public sector banks, 21 private sector banks and 3 foreign banks were selected for the study. Based on the findings of the study specific suggestions have been shared with member Banks for improved customer service.

(ii) Study for disseminating best practices followed in the industry for improving on Code Compliance

A study had been earlier conducted to assess the best practices by high performing Banks in terms of parameters of “Information Dissemination” and “Transparency” and the findings shared with Banks. However, one specific area of concern is the efficacy of the framework/mechanism that banks have adopted to monitor Code compliance at branch level. Against this backdrop, member Banks were advised to provide a detailed write-up on the mechanism put in place for monitoring implementation of Codes alongwith their Annual Statement of Compliance (ASC). Thereafter, as part of the study, BCSBI officials visited Head Offices of 5 public sector banks, 5 private sector banks and 2 foreign banks and one branch of each of these banks which scored High/Above Average ratings under the parameter “Information Dissemination” in Code Compliance Survey 2016-17. Details of monitoring mechanism collected from these banks through a structured questionnaire were analyzed. The gist of the best practices has been shared with member banks.


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Customer service initiatives

With increasing number of customers in the banking fold, a new policy initiative was taken by the Governing Council of BCSBI.

Keeping in mind the multiple advantages of conducting the customer meets, from April 2018, Banks were mandated to conduct a certain number of customer awareness meets to supplement BCSBI’s efforts in spreading awareness of the Customer Rights and provisions of the Code of Bank’s Commitment to Customers across a wider population. With more and more customers into the banking fold and increased digitization initiatives, one meeting per hundred branches in a calendar year was mandated.

Accordingly, Public Sector and Private Sector member Banks were advised to conduct regular customer awareness meetings exclusively to advise them about their rights and provisions of the Codes. Most of the Banks conducted such meetings which will go a long way in customers being made aware of their rights and improving services based on customer feedback.

Resolution of Systemic Issues

BCSBI receives a number of complaints, though it is not a complaint redressal organization. However, these complaints and Awards of Banking Ombudsmen received at the BCSBI are studied to find out whether there is any systemic deficiency which can be remedied. During the year under reporting, BCSBI received 1183 complaints, as against 1076 in the preceding year and the complaints, where found necessary, have been forwarded to banks concerned for necessary action/resolution. All the complaints received are classified into twelve categories, based on the issues raised in the complaints. An analysis of the complaints indicates that most of the complaints pertained to deposits, loans and advances and ATM/ Debit cards. The profile of complaints is given in Annex II.


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Shri Anand Aras, CEO, BCSBI addresses the Customer Meet at Thiruvananthapuram. Others (from left) are Smt. Sati Nair, SVP, BCSBI; Shri H N. Iyer, Banking Ombudsman; and Smt. Asha

Jain, Manager, TransUnion CIBIL Ltd.

Seen at the Customers’ Meet organized by Indian Bank at Chennai are (from left) Shri M K Bhattacharya, ED, Indian Bank, Smt. Jyoti Sharma, SVP, BCSBI and Shri A C Mahajan,

Chairman, BCSBI.


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Seen at the Town Hall Meeting organized by Andhra Bank at Bengaluru are (from left) Ch. Gopalakrishna, Circle General Manager, Andhra Bank; Shri S K Nayak, SVP, BCSBI; Shri

Kulbhushan Jain, ED, Andhra Bank; Shri C Sadananda Rao DGM, Andhra Bank; and Shri G S Jaya Prakash, Zonal Manager, Andhra Bank.

Smt. Jyoti Sharma, SVP, BCSBI addresses the Customers’ Meet at Panchkula. Seated (from left)are Shri P.N.Khanna, LDM, Punjab National Bank; Shri A C Mahajan, Chairman, BCSBI; Shri S Venkata

Raman, DGM & Secretary to BO, Chandigarh; and Shri Gagandeep Singh, Manager, TransUnion CIBIL Ltd.


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Shri A K Menon, SVP, BCSBI addresses the Customers’ Meet at Trichy. Seated on the dais from left are Shri Vaidyanathan, LDM, IOB, Smt. Sati Nair, SVP, BCSBI and Ms. Asha Jain, Manager,

TransUnion CIBIL Ltd.

Smt.Hemalatha Rajan, SVP, BCSBI addresses the Customer Meet organized by Karur Vysya Bank (KVB)at Chennai. Seen from left are executives from bank’s Zonal Office Chennai, Shri

Ramaswamy and Shri Parameshwaran


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Shri D. P. Sudhaker, SVP, BCSBI addresses the Customer Meet at Vijayawada. Others from left are Shri V. Ganesh, Manager, TransUnion CIBIL Ltd, Dr. Kosaraju Rabindranath, Regional Head, Union

Bank of India and Smt. Hemalatha Rajan, SVP, BCSBI.

Shri Anand Aras CEO, BCSBI addresses the Customer Meet at Nasik. Others from left are LDM Nasik, Dr. Ajit Marathe, Regional Head, Union Bank of India, Smt. Hemalatha Rajan, SVP, BCSBI and

Shri Yogesh Tarate, Manager, TransUnion CIBIL.


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Spreading Awareness of the Codes

The Codes are commitments of banks towards their customers. While spreading awareness of the Codes among the staff and customers is the primary responsibility of banks, BCSBI supplemented their efforts by conducting Customer Awareness Meets/Bankers’ Awareness Meets (some of them were arranged in association with TransUnion CIBIL) to spread awareness of BCSBI Codes, Customer Rights, Limited Liability in respect of unauthorized electronic banking transactions, BO Scheme, Grievance Redressal System, precautions to be taken by customers while transacting on electronic banking platform and CIBIL reporting procedures, etc. among customers/bankers.

Customers’ meets were organized by BCSBI at Nagercoil, Thiruvananthapuram, Wardha, Mangaluru, Panchkula, Tiruchirapalli, Jodhpur, Vijayawada, Rajkot, Guwahati, Nasik and Nagpur.

Bankers’ meets were organized by BCSBI at Thiruvananthapuram, Wardha, Mangaluru, Jodhpur, Vijayawada, Rajkot and Guwahati.

During the year, BCSBI officials attended Town Hall/Customer Awareness Meetings organized by BO offices and member banks at Hoshangabad, Kheda, Mumbai, Satara, Thane, Jalna, Coimbatore, Chennai, Bengaluru, Hyderabad, Nagpur, Kolkata, Madurai, New Delhi, Pune, Salem, Vijayawada, Puducherry, Pollachi, Latur, Tambaram, Visakhapatnam, Bhopal and Jalandhar.

“Know Your Rights” Programmes

BCSBI has over the last two years been conducting Know Your Rights Programmes in Tier 2 and Tier 3 cities to make the customers aware of their rights as a Bank customer. BCSBI’s pictorial booklet on Know Your Rights is distributed to these new to banking customers who find the information contained useful.

This year the “Know Your Rights” Programme was held in Girnare (Nashik). The programme was attended by 150 farmers in the area. Through a presentation and lecture in local language, an attempt was made to educate them about their various rights as a bank customer, the steps to be followed while withdrawing cash from ATMs or using debit card for safe banking and the grievance redressal mechanism. The animation film based on the Know Your Rights booklet was also played at the commencement of the programme. The pictorial booklet and the copy of the Code of Bank’s Commitment to Customers were distributed to all the participants.

Animation film based on Pictorial booklet of basic rights contained in the Code of Bank’s Commitment to Customers:

The animation film in Hindi covering 11 basic rights of bank customers like ease of opening BSBD account, nomination facility, activation of dormant accounts, loss of debit card, grievance redressal mechanism, etc. produced by BCSBI was shown at several customer meetings and received good feedback from both customers as well as bankers.

The pictorial booklet is now available in several vernacular languages besides English and Hindi on our website.

BCSBI Newsletter “Customer Matters”

The quarterly Newsletter “Customer Matters” was launched in the year 2009 with the main objective of educating and increasing awareness of the rights of bank customers with the ultimate goal of customer satisfaction. Its coverage includes changes in regulations pertaining to customer service areas in the banking industry along with recent developments in that space.


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The newsletter also highlights the activities of BCSBI aimed at increasing the awareness of the two Codes developed by it. During the year, the Newsletter covered various relevant topics like Revision of Code of Bank’s Commitment to Customers, Right to Privacy and Confidentiality, etc. During the customer awareness meetings conducted by BCSBI, it gets an insight into several customer grievances and issues. It has shared with its readers, as theme of the quarter, a few examples on customer grievances and their redressal as also rights of senior citizens and grievances faced by them.

It introduced a guest column in the newsletter and covered many topics like ‘Converting customer feedback into great experiences’, ‘Service Differentiation’ and ‘The Wave of Digital Transformation in Customer Experience.’

Funds PositionDuring the year under review, BCSBI has expended an amount of ₹ 297.42 lakh (including provision for tax). This expenditure was fully met from interest income of ₹ 489.50 lakh on the Corpus Fund. Accordingly, an amount of ₹ 192.08 lakh was carried over as surplus amount to Balance Sheet as on March 31, 2019.

In view of BCSBI being able to meet its expenses from the interest income generated from the Corpus Fund, no annual membership fee was collected from member banks for the year 2018-19. The accumulated Corpus Fund as on March 31, 2019 amounted to ₹ 4597.42 lakh. BCSBI’s investments stood at ₹ 4267.80 lakh, comprising of term deposits with member banks.

Recent DevelopmentsReserve Bank of India has advised BCSBI in February 2019 that as institutionally, Reserve Bank of India has been able to undertake the activities assigned to BCSBI, BCSBI may initiate the process of its dissolution. Accordingly, BCSBI has discontinued operations related to the objects of the Trust effective April 1, 2019 and advised member banks of the same. Thus, the current year’s accounts for 2018-19 have been drawn on liquidation basis and not on going concern basis.

AcknowledgementsBCSBI wishes to thank all the stakeholders including the top management of RBI and its Consumer Education and Protection Department for their continued guidance and support in discharging the responsibility cast on BCSBI and associating it in the awareness programmes and town halls organized by offices of the Banking Ombudsmen. BCSBI also wishes to thank Indian Banks’ Association and all Member Banks for their support and co-operation.


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Sl. No.

Name of the bank

Scheduled Commercial Banks1. AB Bank Ltd.2. Allahabad Bank 3. Andhra Bank4. Axis Bank Ltd.5. Bandhan Bank Ltd.6. Bank of America N A7. Bank of Baroda8. Bank of Ceylon9. Bank of India10. Bank of Maharashtra11. Bank of Nova Scotia12. Barclays Bank PLC13. BNP Paribas14. Canara Bank15. Catholic Syrian Bank16. Central Bank of India17. Citibank N A18. City Union Bank Ltd19. Corporation Bank20. Credit Agricole Corporate and Investment Bank21. DBS Bank India Ltd.22. DCB Bank Ltd.23. Dena Bank 24. Deutsche Bank AG25. Dhanlaxmi Bank Ltd.26. Doha Bank QSC27. Federal Bank Ltd 28. HDFC Bank Ltd.29. HSBC Ltd30. ICICI Bank Ltd.31. IDBI Bank Ltd.32. IDFC First Bank Ltd.33. Indian Bank34. Indian Overseas Bank35. IndusInd Bank Ltd.36. Jammu & Kashmir Bank Ltd37. JP Morgan Chase Bank N A38. Karnataka Bank Ltd.39. Karur Vysya Bank Ltd 40. Kotak Mahindra Bank Ltd.41. Krung Thai Bank PLC42. Lakshmi Vilas Bank Ltd43. Mashreq Bank PSC

Sl. No.

Name of the bank

Scheduled Commercial Banks44. Nainital Bank Ltd45. National Australia Bank46. Oriental Bank of Commerce

47. Punjab & Sind Bank

48. Punjab National Bank

49. Qatar National Bank S.A.Q.

50. RBL Bank Ltd

51. Royal Bank of Scotland (NatWest Markets Plc)

52. SBM Bank (India) Ltd.

53. Shinhan Bank

54. Societe Generale

55. Sonali Bank Ltd.

56. South Indian Bank Ltd

57. Standard Chartered Bank

58. State Bank of India

59. Syndicate Bank

60. Tamilnad Mercantile Bank Ltd.

61. UCO Bank

62. Union Bank of India

63. United Bank of India

64. Vijaya Bank

65. Yes Bank Ltd.

Scheduled Urban Co-operative Banks

1. Bharat Co-operative Bank (Mumbai) Ltd.

2. Citizen Credit Co-operative Bank Ltd.

3. Cosmos Co-operative Bank Ltd.

4. Dombivli Nagari Sahakari Bank Ltd

5. GP Parsik Sahakari Bank Ltd

6. Janata Sahakari Bank Ltd.

7. Kallapanna Awade Ichallkaranji Janata Sahakari Bank Ltd

8. The Karad Urban Co-operative Bank Ltd.

9. Nagar Urban Co-operative Bank Ltd.

10. Nagpur Nagarik Sahakari Bank Ltd

11. The Nasik Merchants Co-operative Bank Ltd

12. Nutan Nagarik Sahakari Bank Ltd.

13. Punjab & Maharashtra Co-operative Bank Ltd.

14. Saraswat Co-operative Bank Ltd.

15. SVC Co-operative Bank Ltd

16. The Surat Peoples’ Co-op Bank Ltd

17. Thane Bharat Sahakari Bank Ltd.

18. Zoroastrian Co-operative Bank Ltd.

Annex IList of Member Banks of BCSBI (As on March 31, 2019)


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Annex IIProfile of Complaints

Sl.No. Nature of Complaints 2017-18 2018-191. Deposit Accounts 276 3042. Credit Cards 75 833. Pension 20 224. Tariff Schedule and Service Charges 96 1055. Cheque Collection/ Clearing Cycle – Delayed Credit 20 226. ATM/ Debit Cards 144 1597. CIBIL Records 15 168. Compensation Policy 7 89. Harassment by Recovery Agents 36 3910. Loans and Advances 152 16711. Insurance Products 12 1312. Miscellaneous 223 245

Total 1076 1183

Regional Rural Banks

1. Allahabad U P Gramin Bank

2. Andhra Pradesh Grameena Vikas Bank

3. Andhra Pragathi Grameena Bank

4. Baroda Gujarat Gramin Bank

5. Baroda Rajasthan Kshetriya Gramin Bank

6. Baroda Uttar Pradesh Gramin Bank

7. Bihar Gramin Bank

8. Central Madhya Pradesh Gramin Bank

9. Chaitanya Godavari Grameena Bank

10. Chhattisgarh Rajya Gramin Bank

11. Dena Gujarat Gramin Bank

12. Gramin Bank of Aryavarta

13. Himachal Pradesh Gramin Bank

14. J & K Grameen Bank

15. Jharkhand Gramin Bank

16. Karnataka Vikas Grameena Bank

17. Kashi Gomti Samyut Gramin Bank

18. Kaveri Grameena Bank

19. Kerala Gramin Bank

20. Langpi Dehangi Rural Bank

21. Madhya Bihar Gramin Bank

22. Madhyanchal Gramin Bank

23. Maharashtra Gramin Bank

24. Malwa Gramin Bank

25. Meghalaya Rural Bank

26. Mizoram Rural Bank

27. Narmada Jhabua Gramin Bank

28. Pallavan Grama Bank

29. Pandyan Grama Bank

30. Pragathi Krishna Gramin Bank

31. Prathama Bank

32. Puduvai Bharathiar Grama Bank

33. Punjab Gramin Bank

34. Purvanchal Bank

35. Rajasthan Marudhara Gramin Bank

36. Saptagiri Grameena Bank

37. Sarva Haryana Gramin Bank

38. Sarva U P Gramin Bank

39. Saurashtra Gramin Bank

40. Sutlej Gramin Bank

41. Telangana Grameena Bank

42. Utkal Grameen Bank

43. Uttar Bihar Gramin Bank

44. Uttarakhand Gramin Bank

45. Uttarbanga Kshetriya Gramin Bank

46. Vananchal Gramin Bank

47. Vidharbha Konkan Gramin Bank

Small Finance Banks

1. Capital Small Finance Bank Limited

2. Suryoday Small Finance Bank Limited

3. Utkarsh Small Finance Bank Limited


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Statement of AccountsFor the year

2018-19


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Independent Auditor’s Report

To,

The Members of Banking Codes and Standards Board of India

Report on the Audit of Financial Statements

1. Opinion

We have audited the accompanying financial statements of Banking Codes and Standards Board of India (the Trust) which comprise the Balance sheet as on March 31, 2019 and the Income and Expenditure Account of the Trust for the year then ended and notes to the financial statements, including a summary of significant accounting policies.

In our opinion,the accompanying financial statements of the Trust gives a true and fair view of the financial position of the Trust as on March 31, 2019 and the surplus for the year ended on that date which are prepared, in all material respects in accordance with the section 32 of The Maharashtra Public Trusts Act, 1950.

2. Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Our responsibilities under those Standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Trust in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of The Maharashtra Public Trusts Act, 1950 and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on the financial statements.

3. Material Uncertainty Related to Going Concern

We draw attention to Schedule F (A)(1.1) in the financial statements, which indicates that the Trust has received letter from DGM, CEPD of Reserve Bank of India which has instructed the Trust to discontinue the operations of the Trust and initiate the process of dissolving the Trust, which indicates that a material uncertainty exists that cast significant doubt on the Trust’s ability to continue as a going concern. Accordingly, the Trust has drawn the accounts on liquidation basis and not on going concern basis.

Our opinion is not modified in respect of this matter.

4. Responsibilities of Management and Those Charged with Governance for the Financial Statements

The Trust’s Management is responsible for the preparation of these financial statements in accordance with the section 32 of Maharashtra Public Trusts Act, 1950 that gives a true and fair view of the financial position and financial performance of the Trust and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is responsible for assessing the Trust’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Trust or to


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cease operations, or has no realistic alternative but to do so. The financial statements are prepared on the assumption that the Trust is not a going concern as mentioned in schedule F(A)(1.1.)

The Trust’s management are responsible for overseeing the Company’s financial reporting process.

5. Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Standards on Auditing will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with Standards on Auditing, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing our opinion on the effectiveness of the Trust’s internal controls.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Trust’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Trust to cease to continue as a going concern. The financial statements are prepared on the assumption that the Trust is not a going concern as mentioned in para 3 above.

• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

6. Report on Other Legal and Regulatory Requirements:

We report that,


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a. We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purpose of our audit;

b. In our opinion, proper books of account as required by law have been kept so far as appears from our examination of those books;

c. In our opinion, the financial statements dealt with by the report comply with the Accounting Standards issued by the Institute of Chartered Accountants of India; and

d. The financial statements dealt with by this report are in agreement with the books of account.

For Mukund M. Chitale & Co.

Chartered Accountants

Firm Reg. No. 106655W

Sd/-

Place: Mumbai (A. V. Kamat)

Date: June 24, 2019 Partner

Membership No. 39585


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As on March 31, 2018

(₹)

FUNDS & LIABILITIES As on March31, 2019 (₹)

As on March 31, 2018

(₹)

PROPERTY & ASSETS As on March 31, 2019 (₹)

Fixed Assets(Net of Depreciation) (Sch A)

Trust Funds or Corpus 4,53,920 Computer and Peripherals 60,821 37,95,02,000 Balance as per last Balance Sheet 45,97,42,000 45,390 Office Appliances 6,000 8,02,40,000 Add: Contribution received during the

year (including registration fees) - 45,97,42,000 13,055 Furniture & fixtures -

45,97,42,000 - Immovable Properties - 66,821

Investments - Other earmarked funds 35,00,000 Govt Securities(Cost) (Sch B) -

- Loans (Secured or unsecured) -

Public Awareness Fund - Advances- - 2,67,99,866 Balance as per last Balance Sheet 2,73,42,168 - To others- - 1,89,85,912 Less: Trd to Income & expenditure

account - 25,460 Prepaid Expenses -

1,95,28,214 Add: Trd from Income & expenditure account

- 2,73,42,168

2,73,42,168 15,48,522 Income Tax- 24,26,640

Liabilities 6,28,364 Provision for Expenses 64,480 1,62,000 Professional and Audit Fees Payable 2,26,350

31,729 TDS Payable 25,150 Interest Outstanding 18,160 Payable to IndusInd Bank - 8,74,09,122 On Fixed Deposit Receipts

with banks 7,65,61,713

- Payable to ICICI Bank 13,263 - Provision for Tax 71,01,490 74,30,733 1,24,842 On Government of India

Securities - 7,65,61,713

8,40,253 Income and Expenditure Account Cash & Bank Balances

including Fixed Deposits (Sch C)

58,86,299 Balance as per last Balance Sheet 58,86,299 - - Cash in Hand 3,369 - Add : Surplus brought over from

Income and Expenditure Account 1,92,08,339 2,50,94,638 36,74,777 - Bank Balance 1,37,70,609

58,86,299 39,70,15,632 - Fixed Deposit with Banks 42,67,80,387 44,05,54,365

49,38,10,720 Total 51,96,09,539 49,38,10,720 Total 51,96,09,539

Notes on Accounts - Schedule F The above Balance Sheet to the best of our belief contains a true account of the Funds and Liabilities and of the Property and Assets of the Trust.

As per our report of even date

For Mukund M. Chitale & Co.Chartered AccountantsFirm Reg No:- 106655W

For Banking Codes and Standards Board of India

Sd/- Sd/-(A.V.Kamat)PartnerMembership No:- 39585

(A C Mahajan)Chairman

Sd/-(Anand Aras)Chief Executive Officer

Place: Mumbai Place: MumbaiDate: June 24, 2019 Date: June 24, 2019

BANKING CODES AND STANDARDS BOARD OF INDIABalance Sheet as on March 31, 2019

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


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BANKING CODES AND STANDARDS BOARD OF INDIAIncome & Expenditure Account for the year ended March 31, 2019

(As per Schedule IX of The Maharashtra Public Trusts Act, 1950)Year ended

March 31, 2018

(₹)

EXPENDITURE Year ended March

31, 2019 (₹)

Year ended March 31,

2018 (₹)

INCOME Year ended March 31, 2019

(₹)

- To Expenditure in respect of Properties - - By Rent - - 52,065 Repairs and maintenance 88,335 By Interest

67,39,157 To Establishment Expenses (Sch D) 51,65,405 3,93,706 On Securities 19,358 67,49,305 To Remuneration to Trustees 68,59,713 5,91,394 On Savings Bank account 13,90,796

- To Legal Expenses - 3,77,27,311 On Fixed Deposits with banks 4,75,40,104 4,89,50,258 60,000 To Audit Fees 60,000 - On Income Tax Refund -

- To Contribution and Fees - - By Dividend - - To Amount written off - - By Donation in cash or kind - -

621 Premium on Govt Securities amortised - - By Miscellaneous receipts - -

5,29,586 By Premium on maturity of Government Securities

- -

- To Miscellaneous expenses - -

2,26,336 To Depreciation and Impairment 8,98,481 1,89,85,912 By Transfer from Public Awareness Fund

- -

Depreciation 2,80,079 Impairment of assets 6,18,402

1,95,28,214 To Amount Transferred to Public Aware-ness Fund

- -

- To Provision of Tax 71,01,490 1,89,85,912 To Expenditure on the objects of the

trust (Sch E) 95,68,495

58,86,299 To Surplus carried over to Balance Sheet

1,92,08,339

5,82,27,909 Total 4,89,50,258 5,82,27,909 Total 4,89,50,258

Notes on Accounts - Schedule F

As per our report of even dateFor Mukund M. Chitale & Co.Chartered AccountantsFirm Reg No:- 106655W





Place: MumbaiDate: June 24, 2019



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Particulars Rate of

Dep. %

Gross Block Deductions Net Block

Opening Balance

(₹)

Addition (₹)

Closing Balance

(₹)

Opening Balance

(₹)

Depre-ciation

Charge for the year

(₹)

Impair-ment of Asset*

(₹)

Closing Balance

(₹)

31.03.2019 (₹)

31.03.2018 (₹)

Computer 40% 7,59,413 - 7,59,413 3,09,702 179,884 2,09,827 6,99,413 60,000 4,49,711

Printer 40% 9,219 - 9,219 7,852 546 - 8,398 821 1,367

Tally Software 40% 17,600 - 17,600 15,766 734 1,100 17,600 - 1,834

Knowledge Manangement Tool Software

40% 6,000 - 6,000 4,992 403 605 6,000 - 1,008

Microsoft Of-fice-2019 License

40% - 4,49,138 4,49,138 - 89,828 3,59,310 4,49,138 - -

TOTAL 7,92,232 4,49,138 12,41,370 3,38,312 2,71,395 5,70,842 11,80,549 60,821 4,53,920

Office Appliances 15% 58,500 3,799 62,299 13,110 7,379 35,810 56,299 6,000 45,390

Furniture 10% 15,520 - 15,520 2,465 1,305 11,750 15,520 - 13,055

Total 8,66,252 4,52,937 13,19,189 3,53,887 2,80,079 6,18,402 12,52,368 66,821 5,12,365

Previous Year 3,51,832 5,14,420 8,66,252 1,27,551 2,26,336 - 3,53,887 5,12,365 -

Schedule ABANKING CODES AND STANDARDS BOARD OF INDIA

Schedule to Balance Sheet as on March 31, 2019

Schedule BBANKING CODES AND STANDARDS BOARD OF INDIA

Schedule of Investments belonging to the Trust as on March 31, 2019

( As per Part III - Schedule VIII of The Maharashtra 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 6At the beginning of the year

(i) Shares -(ii) Bonds and Debentures -

(as on April 1, 2018) (iii) Deposits -(iv) Others -(v) Public Securities a) 8.24% GOI Securities 2018 35,00,000 35,00,000 8.24%

Total 35,00,000 35,00,000Increase during the year (2018-19) - - Decrease during the year (2018-19)

(v) Public Securities a) 8.24% GOI Securities 2018 35,00,000 35,00,000

Total at the end of the year (as on March 31, 2019) - -

* Note:- As mentioned in Notes to Accounts (para 5) in Schedule F









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Schedule CBANKING CODES AND STANDARDS BOARD OF INDIA

Schedule to Balance Sheet as on March 31, 2019(Amount in Rupees)

As on Bank Accounts As on March 31, 2018 March 31, 2019

Cash In hand - - Petty Cash Balance 3,369 - Total (I) 3,369

In Savings Account 1,29,820 - ICICI Bank 1,83,683

35,13,917 - Yes Bank 1,35,28,494 In Current Account

31,040 - Central Bank of India 58,432 36,74,777 Total (II) 1,37,70,609

In Fixed Deposits 1,133,15,632 - State Bank of Mysore 6,37,00,000 5,48,00,000 - Vijaya Bank 3,79,60,775 3,41,00,000 - State Bank of Travancore 3,41,00,000

95,00,000 - ICICI Bank 95,00,000 2,00,00,000 - Saraswat Co-op. Bank 2,00,00,000

75,00,000 - Lakshmi Vilas Bank 75,00,000 2,00,00,000 - RBL Bank - 2,97,00,000 - YES Bank 3,20,72,395 4,00,00,000 - IndusInd Bank 4,00,00,000 1,01,00,000 - Federal Bank 1,01,00,000 4,00,00,000 - Kotak Mahindra Bank - 1,80,00,000 - Union Bank of India 2,00,00,000

- - Bank of Baroda 4,00,00,000 - State Bank of India 11,18,47,217 [All accounts in the name of Banking Codes and Standards Board of India]

39,70,15,632 Total (III) 42,67,80,387

40,06,90,409 Total (I)+(II)+(III) 44,05,54,365

Schedule DBANKING CODES AND STANDARDS BOARD OF INDIA

Schedule to the Income and Expenditure Account for the year ended March 31, 2019

Establishment Expenses(Amount in Rupees)

Year ended March 31, 2018

Particulars Year ended March 31, 2019

19,903 News Paper and Periodicals 16,313 17,000 Lease Registration Charges -

19,84,500 Lease Rent 11,34,000 47,17,754 Professional fees (Staff) 40,14,384

- Bank Charges 708 67,39,157 TOTAL 51,65,405









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Schedule EBANKING CODES AND STANDARDS BOARD OF INDIA

Schedule to the Income and Expenditure Account for the year ended March 31, 2019

Expenditure on the objects of the Trust(Amount in Rupees)

Year ended March 31, 2018

Particulars Year ended March 31, 2019

53,80,263 Advertisement and publicity 9,61,672 2,17,389 Catering and refreshments 1,95,371 1,00,811 Conveyance and car hire 95,357

5,427 Internet Charges 10,015 1,10,387 Postage and courier 84,693 2,28,079 Printing and stationery 1,85,737

38,08,488 Seminar and conference expenses 19,55,901 21,71,380 Survey expenses 8,126 1,15,344 Telephone expenses 1,05,658

64,54,951 Professional fees (Staff) 54,98,184 2,77,378 Professional fees - Others 3,23,232 1,16,015 Web site Charges 1,44,549

1,89,85,912 TOTAL 95,68,495









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BANKING CODES AND STANDARDS BOARD OF INDIA

Schedule F

SIGNIFICANT ACCOUNTING POLICIES AND NOTES TO ACCOUNTS FOR THE YEAR ENDED March 31, 2019

A. SIGNIFICANT ACCOUNTING POLICIES :

1. Method of Accounting:

1.1 As per governing council meeting dated March 15, 2019, Banking Codes and Standards Board of India (the Trust) has received letter from DGM, CEPD of Reserve Bank of India which has instructed the Trust to discontinue the operations of the Trust and initiate the process of dissolving the Trust.

The financial statements are prepared based on the assumption that the Trust is not a going concern and in accordance with the Generally Accepted Accounting Principles in India (GAAP) and provisions of the Maharashtra Public Trusts Act, 1950.

1.2 The Presentation of financial statements are in conformity with generally accepted accounting principles, requires estimates and assumptions to be made that affect the reported amount of assets and liabilities and disclosure of contingent liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from these estimates and the differences between actual results and estimates are recognized in the periods in which the results are known/ materialized.

1.3 The Financial Statements are prepared on accrual basis.

2. Revenue Recognition:

Interest Income :

Interest income is recognized on accrual basis.

3. Corpus Fund :

As per the funding proposal agreed with Reserve Bank of India, the Trust has built up the Corpus from registration and membership fees as Reserve Bank of India has ceased funding, since the Trust has become 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. The Trust has not received Corpus fund during the year.

4. Fixed Assets:

Fixed Assets are stated at cost less accumulated depreciation. Direct costs are capitalized until fixed assets are ready for use. Capital work-in-progress comprises of the cost of fixed assets that are not ready for their intended use at the reporting date.

5. Depreciation:

Depreciation on fixed assets is provided on written down value method at rates specified in the Income Tax Act, 1961.


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6. Investments :

Long term Investments were stated at cost. Provision for diminution in value of long term investments, if any, is made, if such diminution is other than of temporary nature. There were no such Investments outstanding as on March 31, 2019

7. Related Party Transaction :

Disclosure is made as per the requirement of the AS -18 – Related Party Disclosures and the same is given as part of Notes to Accounts.

8. Operating Leases :

Rentals paid in respect of operating leases have been charged to Income and Expenditure Account.

9. Provision for Tax :

Provision for tax in the current year is determined as the amount of tax payable in respect of all taxable income in accordance with provision of Income Tax Act, 1961.

10. Impairment of Assets :

An Asset is considered as impaired when at the Balance Sheet Date there are Indications of Impairment and the carrying amount of Asset exceeds its recoverable amount (i.e. the higher of the assets Net selling price and Value in Use). The carrying amount is reduced to the recoverable amount and the reduction is recognised as an Impairment Loss in the Income and Expenditure Account. The assets are considered at its recoverable value during the year as the Trust has prepared the accounts on not a going concern basis as stated in schedule F(A)(1.1)

11. Provisions, Contingent Liabilities and Contingent Assets :

Provisions are recognized for liabilities that can be measured only by using substantial degree of estimation. These are reviewed at each balance sheet date and adjusted to reflect the current management estimates. Contingent liability is disclosed in case of possible obligation where the probability of outflow of resource is not certain. Contingent Asset is neither recognized nor disclosed.

B. NOTES TO ACCOUNTS:

1. Related Party Discourse:

Reporting Enterprise: Banking Codes and Standards Board of India

Name of the related parties and description of relationship:

Governing Council Members –

a. A C Mahajan (Chairman);

b. C Krishnan;

c. Rama Bijapurkar;

d. Shubhalakshmi Panse;

e. Uday Phadke;

f. Anand Aras (Chief Executive Officer).


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Details of Related Parties transactions are as under :

Particulars Governing Council Members

2018-19 2017-18

₹ ₹Remuneration to Chief Executive Officer

35,85,313 34,38,815

Remuneration and Sitting Fees to Governing Council Members

32,74,400 33,10,490

2 Leases :

The Trust has entered into a lease agreement with Reserve Bank of India for the office premises for the period from July 2016 to June 2019. The rent for the period April 2018 to March 2019 amounting to ₹ 11,34,000/- (Previous Year: ₹19,84,500) has been debited to Income and Expenditure Account for the year shown in Schedule D.

Total of future minimum lease payments for the following period :

Particulars As at March 31, 2019 As at March 31, 2018

₹ ₹Not later than 1 Year 2,83,500 11,34,000

1-5 Years - 2,83,500

Later than 5 Years - -

Total ₹ 2,83,500 14,17,500

3. Public Awareness Fund :

The Board has not transferred any amount to the Public Awareness Fund during FY 2018-19 from the Income and Expenditure Account as the operations of the trust shall be discontinued as per directions of Reserve Bank of India.

4. The Trust had made an appeal to Appellate Authority against decision of Advance Ruling Authority on the applicability of GST for membership fees. During the year, the Trust has received order from advance ruling authority stating that GST is applicable on the membership fees. However, the Trust has not taken registration under GST as there was no annual membership fees collected for FY 2018-19 and in view of that the Trust had initiated the process of dissolution as directed by Reserve Bank of India.

5. Impairment Loss :

All the Assets are considered as impaired at the Balance Sheet Date as there are Indications of impairment and the carrying amount of Asset exceeds its recoverable amount due to reasons as given in Schedule F(A)(1.1). The carrying amount is reduced to the recoverable amount and the reduction is recognized as impairment loss amounting to ₹ 6,18,402/- in the Income and


24

Expenditure Account (Refer Schedule A).

6. Previous Year’s figures

The corresponding figures for the previous year are re-grouped / re-classified, wherever necessary.

Signatures to Schedule A to F

For Mukund M. Chitale & Co. For Banking Codes and Standards Board of India

Chartered Accountants

Firm Regn. No. 106655W

Sd/-

(A.C. Mahajan)

Chairman

Sd/- Sd/-

(A. V. Kamat) (Anand Aras)

Partner Chief Executive Officer

Membership No. 39585

Place: Mumbai Place: Mumbai

Date: June 24, 2019 Date: June 24, 2019


25

Shri Anand Aras, CEO, BCSBI addresses the Know Your Rights Programme at Girnare, Nashik.

Also seen are Dr. Marathe, Regional Head, Union Bank of India, Smt. Hemalatha Rajan, SVP

BCSBI and Shri Arun Shirawadekar, SVP, BCSBI.

Dr. J.K.Mishra, CEO, IIBF addresses a joint Bankers’ Awareness Meet conducted jointly by IIBF and BCSBI at Guwahati. Others from left are Dr. K. Ramesha, Director, IIBM; Shri Anand Aras,

CEO, BCSBI and Dr. S. Muralidharan, Director (Academic), IIBF.


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Transcript of 2018 - 19 Report///AR18-19.pdf · 2020. 10. 26. · During the year under review, there have been...