##man scheme and the banking codes and standards board of india, such an oragnisational dispensation has enabled a more focused policy attention to the customer service dimension of the banking sector. banking codes and standards board of india ( bcsbi ) recognising an institutional gap in measuring the performance of the banks against codes and standards based on established best practices, the rbi took the initiative for setting up the banking codes and standards board of india ( bcsbi ). it is an autonomous and independent body, adopting the stance of a self - regulatory organisation. the dispensation of the bcsbi provides for voluntary registration of banks with the board as its members and committing to provide customer services as per the agreed standards and codes. the board in turn, monitors and assesses the compliance with codes and standards which the banks have agreed to. the board released in july 2006 a code of bank ’ s commitment to customers to provide a framework for a minimum standard of banking services. the code is not only a commitment of the banks to their customers but, in a sense, is also a charter of rights of the common man vis - a - vis his bank. by setting the minimum standards of reliability, transparency and accountability in the provision of customer service, the code outlines how each bank expects to deal with the customers'day - to - day requirements, and accordingly, what each customer could reasonably expect from his bank. as on date, out of 74 scheduled commercial banks registered with the bcsbi indicating their intention to become members, 70 banks, accounting for 98 per cent of the total domestic assets of the indian banking system, have already enrolled as its members. fair practices codes for lenders the rbi, apart from safeguarding the interest of the bank depositors, has also been concerned to ensure that the borrowing community too gets a fair deal from the bankers. the reserve bank had accordingly formulated a fair practices code for lenders, which was communicated to the banks in 2003 to protect the rightful interest of the borrowers and guard against undue harassment by the lenders. the code was revised in march 2007 to include the requirement that the banks should provide to the borrowers comprehensive details regarding the loans as also the reasons for rejection of the loan applications of the prospective borrowers, regardless of the amount or type of the loan involved. similarly, the indian banks ’ association ( iba ) has formulated a fair practices code for credit card operations, model code of conduct for the

a wider level, however, there is a feeling that the customer does not get satisfactory service even after demanding it and there has been a disenfranchisement of the depositor. in this background, i would like to briefly touch upon the enduring role played by the rbi in enabling customer empowerment and the re - enfranchisement of the customer – who, as the adage goes, is the king! the reserve bank ’ s enduring and abiding concern for the quality of services extended to the bank customers has been reflected in its ongoing regulatory initiatives taken, over the decades, from time to time. the issue of services rendered by the banks to the common person dates back to 1970s when the r. k. talwar committee was appointed in 1975, followed by the goiporia committee constituted in 1990. subsequently, pursuant to the report of the committee on financial system ( the first narasimham committee - 1991 ), wideranging financial sector reforms were also initiated, which were expected to spur competition in the banking sector through deregulation and entry of new private sector banks, which, in turn, was expected to lead to provision of high - quality customer service to meet the longstanding aspirations of the bank customers. however, there has been an increasing realisation, both in india and several other countries, that the forces of competition alone do not ensure the fair treatment of the customer or adequate quality of customer service, at a justifiable price, determined in a transparent manner. this has, therefore necessitated interventions from the regulators to institutionalise a mechanism for securing better customer service for the public at large. institutional infrastructure for ensuring customer service let me briefly recount here some of the initiative of the rbi to put in place the requisite institutional mechanisms aimed at improving the customer service in the banking sector. banking ombudsman scheme the reserve bank had introduced the banking ombudsman scheme for the first time way back in 1995 to provide an expeditious and inexpensive forum to bank customers for resolution of their complaints relating to banking services. the scheme was revised in 2002 mainly to cover regional rural banks and to permit a review of the banking ombudsman's awards against the banks by the reserve bank. the rbi recently announced the revised banking ombudsman scheme, 2006, effective from january 1, 2006, which has much wider scope and includes several new areas of customer complaints. the scheme is applicable to all commercial banks, regional rural banks and