CODE OF BANKING PRACTICE - Mauritius Bankers Association Limited

3rd Floor, Plantation HouseDuke of Edinburgh Street

Port Louis - MauritiusTel: (230) 210 9677 - 211 2980 - 213 0990

Fax: (230) 213 0968Email: [email protected]

Website: http://www.mba-limited.intnet.mu

M AURITIUS B ANKERS ASSOCIATION

2007 EDITION

CODE OF

BANKINGPRACTICE

MEMBERS

1. Bank of Baroda

2. Banque des Mascareignes Ltée

3. Barclays Bank PLC

4. Deutsche Bank (Mauritius) Limited

5. First City Bank Ltd

6. Habib Bank Limited

7. HSBC Bank (Mauritius) Limited

8. Indian Ocean International Bank Limited

9. Investec Bank (Mauritius) Limited

10. Mauritius Post and Cooperative Bank Ltd

11. P.T. Bank Internasional Indonesia

12. SBI International (Mauritius) Ltd

13. SBM Nedbank International Limited

14. South East Asian Bank Ltd

15. Standard Bank (Mauritius) Limited

16. Standard Chartered Bank (Mauritius) Limited

17. State Bank of Mauritius Ltd

18. The Hongkong and Shanghai Banking Corporation Limited

19. The Mauritius Commercial Bank Ltd

MBA CODE OF BANKING PRACTICE �

�. Introduction

2. Ourkeycommitmentstoyou

3. Choosingtherightproductsandservicesthatmeetyourneeds

4. Termsandconditions

5. FeesandCharges

6. Customerinformation

7. AdvertisingandMarketing

8. Provisionofcredit

9. Runningyouraccount

�0. DormantAccounts/AbandonedFunds

��. ForeignExchangeServicesandCross-BorderPayments

�2. CardsandPINs

�3. OnlineBanking

�4. Liabilityforlosses

�5. Reasonablecare

16. Financialdifficulties

�7. Disputeresolution

�8. Businesscontinuity

MBA CODE OF BANKING PRACTICE

CONTENTS

2 MBA CODE OF BANKING PRACTICE

1. INTRODUCTION

The Code of Banking Practice (‘the Code’) is a voluntary code of conduct whichsetsoutthestandardsofgoodbankingpracticethatweasbanksshouldobserveinourdealingswithcustomersandpotentialcustomers.Wewant toestablishagoodrelationshipwithyouandalsopromotegoodbankingpracticebyformalisingstandardsofdisclosureandconductwhichwewillobservewhendealingwithyou.WecommitourselvestomaintaintherelevantstandardsoffairnesssetoutinthisCode.IndividualcustomersshouldfindtheCodehelpfulinunderstandinghoweverybankisexpectedtobehavetowardsthem.

The Banking Act provides for the appointment of an Ombudsperson for Banks.As at the date of publication of this Code the Ombudsperson has not yet beenappointed. However, once the Ombudsperson is appointed, we would be preparedtosubmitourselves to the jurisdictionof theOmbudspersonforBanks tomediate,tomakebindingdeterminationsbasedon the law,whereappropriate,and tomakerecommendationsinothercircumstancesincludingthosebasedonequity.

We will comply with all applicable legislation, codes, rules and supervisoryrequirements, specifically those relating tobanking,market conduct andconsumerprotection.

However,noneoftheprovisionsofthisCode:

• Willaffectyourstatutoryrights. • WillbelegallybindinginanyCourtoflaw. • Willconstituteanimpliedtermofyourcontractwiththebank. • Maybeusedasanaidtointerpretationorinanywaytoinfluencethe interpretationoflegalrelationshipbetweenyouandyourbank. • Willgiverisetoatradecustomortacitcontractorotherwise betweenyouandyourbank.

InthetextofthisCode,“You”meanstheClientand“We”,“Our”and“us”refertotheclient’sbank.AlistofdefinitionsofcertainwordsandphrasesusedintheCodeisprovidedintheglossary.

TheCodewillbereviewedeverythreeyearsorsooner,ifsorequired.

TheCodeappliesasfrom�January2007.

MBA CODE OF BANKING PRACTICE 3

2. OURKEYCOMMITMENTSTOYOU

Wepromise thatwewill act fairlyand reasonably inallourdealingswithyoubymeetingallthecommitmentsandstandardsinthisCode.Wewill:

2.� ensurethatclearinformationisavailableinrespectofallourservicesand products;

2.2 ensure that our advertising and promotional literature is clear and notmisleading;

2.3 assist you to choose a service or product appropriate to your needs and understand the basic financial implications of the products or services you choose;

2.4 assistyoutounderstandhowyouraccount(s)works;

2.5 helpyoumonitoryouraccount(s)bysendingyouregularstatements(where appropriate)andwewillkeepyouinformedaboutchangestotheinterestrates, charges,termsandconditionsthatmayapplytoyouraccountswithus;

2.6 providereliablebankingandpaymentsystemsservicesandtakereasonable caretomaketheseservicessafeandsecure;

2.7 ensure that the products and services we offer and more particularly our lending criteria, are based solely on commercial principles and do not discriminateagainstyouonanybasisnotpermittedbylaw;

2.8 publicise thisCode, have copies available andmake sure that our staff are trainedtoputitintopractice;

2.9 treatallyourpersonalinformationasprivateandconfidential;

2.�0 consider each case of financial difficulty on its merits and act quickly and effectively;

2.�� informyouaboutourcomplaintsproceduresandhandlecomplaintsspeedily;

2.�2 generallyactonyourwritteninstructionsonlyafteryoursignaturehasbeen verified. We will act in accordance with other forms of instructions in exceptionalcircumstancesonlyorwherethenatureoftheprocesssodictates, for example ATM, telephone, internet or any other form of electronic banking.


3. CHOOSING THE RIGHT PRODUCTS AND SERVICES THAT MEETYOURNEEDS

3.� Beforeyoubecomeacustomer,wewill:

• Giveyouclearinformationexplainingthekeyfeaturesoftheservices andproductsyoutellusyouareinterestedin. • Giveyouclearandappropriateinformationonthedifferenttypesof productsandaccountsavailablefromustoassistyouinmakingan informedchoiceappropriatetoyourneeds. • Tellyouwhatinformationweneedfromyoutoproveyouridentity (bylaw,wearerequiredtoascertainyouridentitytoassistinprotecting our customers, members of the public and ourselves against fraud andothermisuseofthebankingsystem). • Makeavailabletoyourecommendedsafetymeasuresandtipsonour servicesandproductsinwhichyouexpressaninterest.

3.2 Wewilltellyouifweofferproductsandservicesinmorethanoneway(for example,ontheinternet,overthephone,inbranchesandsoon)andtellyou howtofindoutmoreaboutthem.

3.3 Anyinformationprovidedwithrespecttoproducts/servicesshallbedeemed tobeaguidelineonlydesignedtoassistyouinmakingyourowndecisions.

4. TERMSANDCONDITIONS4.� Wewillgiveyouallrelevanttermsandconditionsfortheproductyouhave askedustoprovide,whenyouapplytobecomeacustomeroracceptaproduct forthefirsttime.

4.2 Allwrittentermsandconditionswillbefairandwillclearlysetoutyourrightsand responsibilitiesinrespectofaproductorserviceinplainlanguage.Wewilluse legal and technical language only where necessary. Where legal and technical languageisused,wewillexplainwhatwemean.Ifyouarestilluncertainafter studyingtheexplanation,youmayapproachusforfurtherclarification.

4.3 Whenyoubecomeacustomer,wewillinformyouastothemodebywhichyou willbeapprisedaboutchangestothosetermsandconditionswhichweareentitled by law to modify. This will normally be through direct communication to the customerorbyadviceondisplay inbranchesorATMsorbystatements in the mediabeforethechangesareimplemented.Wewillgiveyoureasonablenotice, whichinnormalcircumstancesshallnotbelessthan30daysbeforeanychange


takeseffect,sothatyouwillhavetimetodecidewhetheryouwanttocontinue withtheproductorservice.

4.4 Wewill,upon request,and if therearesignificantchanges ina�2months’ period to warrant it, make available to you a single document providing a consolidation of the variations made to the terms and conditions over that period.

4.5 Undernormalcircumstances,wewillnotcloseyouraccountwithoutgiving youreasonablewrittennotice,which,inanycase,shallnotbelessthan7days, atthelastaddressyougaveus.

4.6 However,subject toyourrightunderParagraph�7,wereservetheright, to protect our interest, to take such other measures as we deem appropriate includingsummarilyclosingyouraccountfor thefollowingnon-exhaustive reasons:

• Ifwearecompelledbylaw. • Ifyouusethreateningandabusivebehaviourtowardsstaff. • If we have reasons to believe that your account is being used for fraudulentand/orillegalpurposes.

4.7 Wewillnormallyprovideyouwith30days’priornoticeofourintentionto closeanyofourbankbranches,outletsorATM/electronicbankingcentres.

5. FEESANDCHARGES

Feesandcharges

5.� We will make available to you rates of the fees and charges, if any, payable in connection with the operation of your accounts. These will beintheformofpublishedtariffscoveringbasicaccountservices,whichwill be given to you at the time the accounts are opened and at any time upon request.

5.2 Ratesofthefeesandchargeswithrespecttoallourproductsandserviceswillbe conspicuously displayed in the public part of our branches and will also be postedonourwebsites.Detailsof anychanges to the ratesof those fees and chargeswill begivenbydirect communication to customersorby adviceon display in branches or by statements in the media before the changes are implemented.

5.3 We will inform you of the nature and amount of charges debited to youraccounts.


Interestrates

5.4 Wewillinformyouoftheinterestratesapplicabletoyouraccounts,themanner inwhichinterestiscalculatedandwhenitwillbechargedtoyouraccounts. Thesewillincludetheratesapplicableandanyotherapplicablefees/charges when your accounts are overdrawn without prior agreement or exceed the agreedborrowinglimit.

5.5 When we change interest rates with immediate effect, we will give public noticeofthosechanges,forexample,bynoticesinourbranchesorinthepress oronstatementsorthroughourATMnetworkorourwebsites.

6. CUSTOMERINFORMATION

6.�. We will treat all customer information as strictly private and confidential (evenafteryouceasetobeacustomer).Wewillnotrevealyourpersonaldetails ordetailsaboutyouraccountstoanyoneexceptwhenrequiredorallowed underthelaworwhenwehaveyourpermissiontodoso.6.2. Wewillnotpressyouby restrictingaccess toanyofour standard services and products upon the condition that you consent to pass your personal informationtoanycompany,includingthoseinourgroup.

6.3 Undercertainconditions,wearerequiredtodiscloseinformationaboutyour creditexposuretotheMauritiusCreditInformationBureau(MCIB).

7. ADVERTISINGANDMARKETING

7.� Wewillmakesurethatalladvertisingandpromotionalmaterialisclear,fair andnotmisleading.

7.2 Wewillmarketandapprovecreditresponsibly,basedontheinformationyou supply to us, to match your requirements and capabilities and supply you withsuitableproducts,inanattempttoensurethatyouarenotextendedbeyond yourfinancialmeans.

7.3 We may inform you about the services or products of another company. Ifyouagree,thatcompanymaycontactyoudirectly.


8. PROVISIONOFCREDIT

8.�. All lending will be subject to an assessment of your ability to afford such facilityandyourwillingnesstorepay.Thisassessmentwillinclude-butwill notbelimitedtothefollowing:

• Checks we are required to carry out with the Mauritius Credit InformationBureau(MCIB). • Checks we may carry out with other banks with whom you have transactedpreviouslytoascertainyourcreditworthiness. • How you have conducted your previous and existing accounts withus. • Informationsuppliedbyyou,includingverificationofyouridentity andthepurposeoftheborrowing. • Anysecurityorcollateralprovided. • Creditscoring. • Yourfinancialstatements.

8.2 Whenweextendcredittoyou,includingamortgageloan,weshalldiscloseto you: (i) the interestcharged thereonand themanner inwhich it is tobe calculated; (ii) anyapplicablefeesorotherchargesandthemannerinwhichthey aretobecalculated; (iii) alltermsandconditionsapplicabletothecredit,clearlyidentifying your obligations and encourage you to take independent legal advice; (iv) theoperationandrepaymentofyourloan,includingallthecharges and costs, and the additional interest and costs payable should youraccountfallintoarrears.Wewillalsoexplainthebenefitsand possibleadditionalfeeswithregardtoacceleratedpayment; (v) thatyourcreditfacilitymay,subjecttoParagraph�6,berecalled at any time, should you fail to respect the terms and conditions applicabletothecredit; (vi) thatyouriskthepossibilityoflosinganypropertygivenassecurity shouldyounotkeepupyourloanrepayments;and (vii) whether the bank requires insurance to be taken out and whose responsibilityitistoarrangefortheinsurance.

8.3 Ifyouwantustoacceptanyguarantororothersecurityfromsomeoneforyour loans,wewill:


(i) adviseandcautiontheguarantorthat,bygivingthesuretyorother security,theymaybecomeliableinsteadof,oraswellas,you; (ii) encouragetheguarantortotakeindependentlegaladvicetomake sure that they understand the commitment and the potential consequencesofsuchadecision; (iii) ensurethatallthedocumentstheguarantorwillbeaskedtosign willcontainclearandprominentnoticetothiseffect; (iv) advise the guarantor whether it is a limited (and the maximum value)orunlimitedsuretyandtellthemabouttheimplicationsof anunlimitedsurety;and (v) undertaketoinformtheguarantorassoonasreasonablypossibleif theprincipalhascommittedabreachofthetermsofanyfacility.

9. RUNNINGYOURACCOUNT

9.� We recommend you to check your statements or savings account book regularly.Ifyourstatementorsavingsaccountbookhasanentrythatseemsto be wrong, you should tell us as soon as possible, so that we can resolve matters.

• Tohelpyoumanageyouraccountandcheckentriesonit,wewillgive youregularaccountstatements,atleastonahalfyearlybasisunless you request otherwise or this is not appropriate for the type of accountyouhave(suchasanaccountwhereyouhaveapassbook). • You can ask us to give you account statements more often than is normally availableonyour typeof account, but theremaybe a chargeforthisservice. • You should manage the use of your statements to meet your requirements taking into account the charges associated with providingthem.

9.2 Wewill,uponrequest,adviseyouastohowdirectdebits,standingordersand recurringtransactionsworkandhowyoumaycanceloneofthesewhenyou nolongerrequireit.

9.3 We will keep original cheques paid from your account or copies of these, fortheperiodprescribedbylaw.

9.4 Ifweretainacheque,wewillkeepthechequeforaperiodofatleast�0years asfromthedatethechequeisdrawn.

9.5 If,aftertheperiodof�0yearsreferredtoinParagraph9.4,wehavenotkept theoriginalofthechequeweshallkeepalegiblecopythereofinsuchformas isrequiredbylawforafurtherperiodof20years.


9.6 IfwedonotkeepsuchacopyofthechequeasreferredtoinParagraph9.5, weshallkeepthechequeforaperiodof20years.

9.7 Wherewehavepaidacheque,uponrequestbyyouasdrawerwewillwithin areasonabletimeprovideyouwitheitherthechequeoralegiblecopyofthe chequeonpaymentofafee.

9.8 Wewill,uponrequest,adviseastohowwedealwithunpaidchequesandout ofdatecheques.

9.9 Wewill,uponrequest,adviseastohowandwhenwemaystopachequeor countermandothertypesofpayments.

9.�0 Wewill,onrequest,adviseastowhenfundscanbewithdrawnafteracheque orotherpaymenthasbeencreditedtotheaccount.

9.�� Wewillinformyouifachequeyouhavedepositedhasbeenreturnedunpaid.

9.�2 Itisessentialthatyoukeepusinformedofanychangewithrespecttoany informationprovidedatthetimeoftheopeningoftheaccountandwhichmay haveaneffectontheday-to-dayrunningofyouraccount(e.g.name,address, revenue,employer).Youwillberequiredtosubmitdocumentaryevidence.

10. DORMANTACCOUNTS/ABANDONEDFUNDS

�0.� Wherethefundsyouhavedepositedwithusfallbelowourminimumbalance requirement (which may vary among banks) and these have been left untouchedforaminimumperiodofoneyear,wewillnotifyyouinwriting priortoapplyinganyservicefeesorcharges.Shouldyoufailtorespondwithin 6monthsofsuchnotificationmadetoyou,yourdepositwillbetransferredto thecentralbank.

�0.2 Bylaw,wearerequiredtotransfertothecentralbankfundsyouhavedeposited withus,whichhavebeenleftuntouchedandnotreclaimedforaperiodof�0 yearsormore.Priortothetransferoffunds,wewillinformyouinwritingatthe lastknownaddressyouhaveprovidedus.Ifyoudonotrespondwithin6months ofournotification,thefundswillbetransferredtothecentralbank.

�0.3 FundstransferredtothecentralbankinaccordancewithParagraphs�0.�and �0.2willalwaysremainyourproperty(orifyoudie,itwillbecomepartof yourestate).Thisisthecasenomatterhowmanyyearspass.However,such funds will not bear any interest. Upon request, we will advise you of the processtoretrieveyourfunds.

�0 MBA CODE OF BANKING PRACTICE

11. FOREIGN EXCHANGE SERVICES AND CROSS-BORDER PAYMENTS

��.� Wewill explain the services, details of the exchange rates and the charges whichwillapply toour foreignexchangeservices.The ratesof the feesor chargeswillalsobedisplayedinourbranchesand/orourwebsite.

��.2 When you wish to effect cross-border payments, we will, upon request, provideyouwithdetailsoftheservicesweoffer.Indoingso,wewillprovide, asaminimum:

(i) a basic description of the appropriate services available and the mannerinwhichtheycanbeused; (ii) information as to when money sent abroad on your instructions maybeexpectedtoarrive;and (iii) thedetailsoftheexchangerate,anycommissionorchargespayable to us including a warning where agents' charges may also be incurred.

��.3 Ifmoney is transferred toyourbankaccount fromabroad,wewill tellyou theamountreceivedandanychargesapplicable.Ifthesenderhasagreedtopay allcharges,wewillnot takeoffchargeswhenwepaythemoneyintoyour account.

12. CARDSANDPERSONALIDENTIFICATIONNUMBERS(PINS) Thissectionappliesto“cards”asdefinedintheglossary Generalfeaturesofcards

�2.� Unlessyouridentityhasalreadybeenverifiedbyus,wewillrequestyouto establishyouridentitywhenyouapplyforacard.

�2.2 Wewillonlyissueanewcardtoyouuponrequestorinreplacementofany existingcard.

�2.3 Wewillinformyouifthecardissuedtoyouhasmorethanonefunction.

�2.4 Whenyouapplyforacredit/debitcard,wewilltellyouhowitworksandgive youthetermsandconditions.

�2.5 Ifyoudonotrecogniseacardtransactionthatappearsonyourstatement,we willgiveyoumoredetailsifyouaskus.Insomecases,wewillneedyouto giveusconfirmationthatyouhavenotauthorisedatransaction.

MBA CODE OF BANKING PRACTICE ��

�2.6 If we are satisfied that a transaction is unauthorised, the amount involved togetherwithanyinterestcharged,asaconsequenceofthetransactionbeing unauthorised,willberefundedunlessyouhaveactedfraudulentlyorwithout reasonablecare.

�2.7 Wewill informyouastothefrequencyatwhichyouwillreceivearequest forpaymentandtheperiodwithinwhichpaymentshouldbemade.

�2.8 Wewillinformyouinwriting,notlessthan30daysbeforeanyvariationof thetermsandconditionsrelatingtoyourcardsbecomeseffective.

PINs

�2.9 WewillgiveyouyourPINseparatelyfromyourcard.Wewillnotrevealyour PINtoanyoneelse.�2.�0 Wewill tellyouaboutoursystems,whichallowyoutochooseandchange yourPIN.

Creditcards

�2.�� When we issue a card to you, our literature will provide the following information:

(i) yourrightsandobligationsinrespectof: a. the credit limit authorised under the card and the amount of indebtednessoutstandingatanytime; b. theperiodoftimeforwhicheachstatementisissued; c. anychargesandinterestcostsforwhichyoubecomeresponsible foracceptingandusingthecard; d. theminimumamountinrespectofthebalanceoutstandingthat mustbepaidattheendofeachstatementperiod;and e. themaximumamountofyourliabilityforunauthoriseduseof thecardwhereitislostorstolen. (ii) the cost of borrowing in respect of any loan obtained through theuseofthecard; (iii) theexchangerateappliedandthemannerinwhichitiscalculated; (iv) intheeventtherequiredinstalmentisnotpaidontheduedate, particularsof thechargesandpenalties thatyoushouldpay;and (v) theamountofanychargeorfeeforwhichyouareresponsiblefor acceptingandusingthecardandthemannerinwhichthechargeis calculated.


�2.�2 Beforewegiveyouacreditlimitorapproveyourrequestforanincreaseinthe creditlimit,wewillmakeanassessmentastoyourrepaymentcapacity.

�2.�3 We may increase or decrease your credit limit on your card. However we willnotchangeyourcredit limitunlesswehave informedyoubeforehand. Youcancontactusatanytimeifyouwanttoreduceyourcreditlimitoropt outofreceivingcreditlimitincreases.

�2.�4 Youwillreceiveamonthlystatementforyourcreditcardunlessyouraccount hasanilbalanceandhasnotbeenused.Themonthlystatementwillinclude informationabouttransactionssincethelaststatementdate,anyinterestand othercharges/fees,whichapply,andtheminimumrepayment.

�2.�5 Wewillinformyouoftheperiodoverwhichanypromotionalofferinrelation toyourcreditcardwillapply.

�2.�6 Ifyoumakeacashwithdrawalwithacreditcard,wewill treat itasacash advance and you may be charged a handling fee and interest at the cash advancerateasfromthedateofthewithdrawaluntilfullpaymentiseffected.

13. INTERNETANDTELEPHONEBANKING

Onlineandtelephonebankingaresafeaslongasyoutakeanumberofsimple precautions:

• Keepyourpassword/PINsecret. • Reviewyourbankstatementsandreconcileyouraccountsregularly. • Treatemailsyoureceivewithcautionandbewaryofemailsorcalls askingyoutorevealanypersonalsecuritydetails.NeitherthePolice norwewillevercontactyoutoaskyoutorevealyouronlinebanking orpaymentcardPINs. • CheckthesitesecuritycertificatefortheInternetBankingsiteeach timebeforeyoudoyourbanking. • Changethepasswordthatwasissuedtoyoutoapasswordofyour choiceknownonlytoyou. • Shouldyoubeawarethatyoursecretaccesscode/PIN/passwordor otheruniquemeansofpersonalidentificationhasbeenobservedby anyone,changeitimmediately. • Thesecurityofyourpersonalcomputerisyourresponsibility. • Ensure that you have read and are familiar with the terms and conditionsofyourbank’swebsite,includinganysecurityprecautions, andtheproducttermsandconditionsonthewebsite. • Do not use the browser facility to store your password in order

MBA CODE OF BANKING PRACTICE �3

to avoid having to enter it each time you transact, using internet banking. • Ensurethatthereisadequateanti-virusandsecuritysoftwareinstalled andenabledonthecomputeryouuseforinternetbanking.

14. LIABILITYFORLOSSES

�4.� It is essential that you tell us as soon as you can if you suspect or discoverthat:

• Yourchequebook,passbookorcardhasbeenlostorstolen;or • Someone else knows your PIN, password or other security information.

�4.2 The best way of informing us about the loss will usually be by telephone initially,usingthenumberswehavegivenyouorbyemailifwehavegiven youanaddressforthispurpose.Youneedtothereafterpromptlyconfirmthe lossinwriting.Wemayrequireyoutogiveastatementtothepoliceaboutthe lossortheftofyourcard.

�4.3 Afteryouinformusthatachequebook,savingsaccountbookorcardhasbeen lostorstolenorthatsomeoneelseknowsyourPIN,passwordorotherunique meansofpersonalidentification,wewilltakeimmediatestepstopreventthese frombeingusedtoaccessyouraccount.

�4.4 Subject to Paragraphs �4.6 and �4.7, we will refund you the amount of any transaction together with any interest or charges associated with the disputedtransactioninthefollowinginstances:

• Where you have not received your card and it is misused by someoneelse. • Foralltransactionsnotauthorisedoreffectedbyyouafteryouhave informedusoftheinformationlistedinParagraph�4.�. • Where system malfunctions have occurred inATMs or associated systems,whichwerenotobviousorsubjecttoawarningmessageor noticeatthetimeofuse.

�4.5 If someone else uses your card before you tell us it has been lost or stolen,thebankwillrefundanydisputedtransactionsif:

• Youhaveexercisedreasonablecareinsafeguardingyourcardfrom riskofloss,theft,orunauthoriseduse;and

• Youimmediatelyandwithoutdelaynotifiedthebankupondiscovery oftheloss,theft,orunauthoriseduse;and


• APINhasnotbeenusedasthecardholderverificationmethodforthe unauthorisedtransaction(s);and • Youhavecompliedwiththetermsandconditionsofthecardholder agreement.

�4.6 Ifyouactfraudulently,youwillberesponsibleforalllossesonyouraccount. If you have acted without reasonable care and this causes losses, you may be responsible for them. Your responsibility may also apply if you fail to followmeasuressetoutinParagraphs�3and�5.�4.7 Whenacreditcard transactionisdisputed,wewouldrequestyourpatience andcooperationwhilewewillconductaninvestigationtoestablishwhether therehasbeenfraudandnegligence.Insuchcases,weexpectyoutocooperate withusandthePoliceinanyinvestigationandweundertaketoreverttoyou within30daysofyournotificationtothebankofthedisputedtransaction.

15. REASONABLECARE

�5.� Thecareofyourcheques,passbook,cards,PINsandothersecurityinformation isessentialtohelppreventfraudandprotectyouraccounts.Pleasemakesure thatyoufollowtheadvicegivenbelow.

• Donotkeepyourchequebookandcardstogether. • Never give your account details or other security information to anyoneunlessyoucanreasonablytrustthepersonandyouare informedwhyhe/sheneedsthem. • Donotallowanyoneelsetouseyourcardanddonottellanyoneelse yourPIN/password. • IfyouchangeyourPIN,youshouldchooseyournewPINcarefullyand avoidPINsthatareeasytoguess,suchas��oryourdateofbirth. • TrytorememberyourPIN,passwordandothersecurityinformation anddestroythenoticeassoonasyoureceiveit. • Never write down or record your PIN, password or other security information. • DonotkeepbothyourcardandPINtogether. • AlwaystakereasonablestepstokeepyourcardsafeandyourPIN, passwordandothersecurityinformationsecretatalltimes. • Keepyour card receipts andother informationaboutyour account containingpersonaldetails(forexample,statements)safeandgetrid ofthemcarefullybydestroyingthem. • Take care when storing or getting rid of information about your accounts. People who commit fraud use many methods, such as ‘binraiding’,togetthistypeofinformation.Youshouldtakesimple

MBA CODE OF BANKING PRACTICE �5

stepssuchasshreddingprintedmaterial. • Ensurethatyouarealerttotherisksofmuggingandcardswapping whenusingATMsorotherelectronicbankingdevices. • DonotuseATMs/POSthathaveobviouslybeen tamperedwithor thatcontainwarningmessages.

�5.2 Youarebylawrequiredtoexercisereasonablepromptnessinexaminingthe bankstatementswesendyou.Ifthereisanentrythatseemstobewrong,you shouldtellusassoonaspossiblesothatwecansortitout.Wewillremindyou tocheckyourstatementseverytimewesendyouastatement.

16. FINANCIALDIFFICULTIES

�6.� Shouldyouraccountgointodefault,ourfirststepwillbetotrytocontactyou todiscussthematter.

�6.2 Ifyoufindyourselfinfinancialdifficulties,youshouldletusknowingood timeand,inparticular,respondtoourcommunicationsassoonaspossible.The soonerwediscussyourproblems,theeasieritwillbeforbothofustofind a solution and develop a plan with you for dealing with your financial difficulties,consistentwithbothourinterestsandyours.

17. DISPUTERESOLUTION

�7.� Ifyouwanttomakeacomplaint,wewilladviseyouofourprocedures.

�7.2 If we do not resolve your dispute or you are not satisfied with the outcome of our dispute handling process, we would be prepared to submit ourselves to the jurisdictionoftheOmbudspersonforBanks.

18. BUSINESSCONTINUITY

We will take all necessary measures to ensure the continuity of business operationsandtominimiserecoverytimeinthecaseofadisaster(naturalor otherwise)orintheeventofanemergency.


GLOSSARY

These definitions explain the meaning of words and terms used in the Code. They are not precise legal or technical definitions.

ATM(AutomatedTellerMachine)A cash machine or freestanding electronic banking device dispensing cash which may also provide otherinformationorservicestoclientswhohaveacardandaPIN,passwordorothermeansofuniqueidentification.

BankingandpaymentsystemsThisreferstotheunderlyingclearing,moneytransmissionandcomputersystemsusedbybanks.

CardsAgeneraltermforanyplasticcardusedtopayforgoodsandservicesand/ortowithdrawcash.

ChequeAchequeisanunconditionalorderinwritingdrawnonabanktopay,ondemand,asumofmoneyasspecifiedinwordsandfiguresbyadrawerwithhissignature.Achequeisvalidforoneyearasfromthedateofissue.

DirectdebitItisaninstructioninwritingdulysignedbyacustomertoabanktopayasumofmoney,tobespecifiedbythebeneficiary,asclaimedforaparticularserviceprovidedbythebeneficiarytothecustomer.

EquityJusticeappliedincircumstancescoveredbylawyetinfluencedbyprinciplesofethicsandfairness.

MauritiusCreditInformationBureau(MCIB)The MCIB collects, stores and provides credit information to lending institutions about customers’ creditexposures.ItisadministeredbytheBankofMauritiusunderstrictconfidentiality.

OutofdatechequeAchequewhichhasnotbeenpaidbecausethedatewrittenonthechequeis tooold(normallyolder than�2monthsforlocalcheques).

PasswordAwordoranaccesscodethatiseithersuppliedbyabankorchosenbycustomerstoallowthemtousephoneorinternetbankingservices.

PIN(PersonalIdentificationNumber)Aconfidentialnumberwhichallowscustomerstomakepurchasesofgoodsandservices,withdrawcashanduseotherservicesatacashmachine.CustomerswilloftenhavetoentertheirPINintoapointofsaleterminal,insteadofsigningareceipt,toauthoriseatransaction.

POS(PointOfSale)Apointofsale(POS)terminalisacomputerisedreplacementforacashregister.

StandingorderAStandingorderisaninstructioninwritingdulysignedbyacustomertoabanktopayacertainsumofmoneyonspecificdate/stoanamedpartyduringaspecifiedperiod.

UnpaidchequeThisisachequewhich,afterbeingpaidintotheaccountofthepersonitiswrittenoutto,isreturned‘unpaid’(bounced)bythebankwhosecustomerissuedthecheque.Thisleavesthepersonthechequewaswrittenouttowithoutthemoneyinhisaccount.

3rd Floor, Plantation HouseDuke of Edinburgh Street

Port Louis - MauritiusTel: (230) 210 9677 - 211 2980 - 213 0990

Fax: (230) 213 0968Email: [email protected]

Website: http://www.mba-limited.intnet.mu

M AURITIUS B ANKERS ASSOCIATION

2007 EDITION

CODE OF

BANKINGPRACTICE

CODE OF BANKING PRACTICE - Mauritius Bankers Association Limited

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Transcript of CODE OF BANKING PRACTICE - Mauritius Bankers Association Limited