Annual Report BANKING CODES AND STANDARDS BOARD OF INDIA.

Annual Report 2015-16 BANKING CODES AND STANDARDS BOARD OF INDIA www.bcsbi.org.in

PUBLISHED BY Anand Aras Chief Executive Officer Banking Codes and Standards Board of India C-7, Reserve Bank of India Building Bandra Kurla Complex Mumbai- 400051

Governing Council Chairman A C Mahajan Members C Krishnan Rama Bijapurkar Nalin M Shah Shubhalakshmi Panse Anand Aras Chief Executive Officer Banking Codes and Standards Board of India

ANNUAL REPORT OF THE BANKING CODES AND STANDARDS BOARD OF INDIA 2015-16 Banking Codes and Standards Board of India (BCSBI) has been set up as an independent and autonomous body with the twin objective of framing of Codes and Standards for fair treatment of customers as also monitoring implementation of the Code provisions by member banks. The two Codes - Code of Bank s Commitment to Customers and Code of Bank s Commitment to Micro and Small Enterprises - brought out are periodically reviewed and revised. While the Code of Bank s Commitment to Customers was last reviewed and updated in January 2014, the Code of Bank s Commitment to Micro and Small Enterprises was revised in August 2015. Monitoring of implementation of the Codes was undertaken by obtaining Annual Statement of Compliance from Banks as also by visits to select branches and centralized processing centres. The output of such visits, as well as customer responses, was utilized to bring out BCSBI Code Compliance Rating of banks. Such a Rating brought out in August 2015 was also put on BCSBI website for wider dissemination. As in the previous year, BCSBI also undertook Code Monitoring Studies in the areas of Charges levied by banks for SMS alerts, Study of information provided by Banks to customers at the time of opening of Savings Bank Account, Study of Nursing Sick Micro and Small Enterprises (MSEs) and Study of High and Low performing Banks in the areas of Information dissemination and Transparency. BCSBI participated in Customer Awareness Meets organized by Banking Ombudsmen and banks as also organized a few customer meets and meetings of the controlling heads of banks who in turn can further spread awareness of banks commitments towards customers contained in the Codes. Governing Council The present Governing Council was last reconstituted by RBI with effect from December 14, 2014 for a period of three years ending on December 13, 2017. The Governing Council 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 2015-16. Membership During the year under review, one scheduled commercial bank (viz. Doha Bank QSC), four Urban Co-operative Banks (viz. Kallappanna Awade Ichalkaranji Janata Sahakari Bank Ltd., Ichalkaranji, Gopinath Patil Parsik Janata Sahakari Bank Ltd., Thane, The Surat Peoples Co-op. Bank Ltd., Surat and Dombivli Nagari Sahakari Bank Ltd., Dombivli, and one Regional Rural Bank (viz. Langpi Dehangi Rural Bank) have been enrolled as members of BCSBI. With these additions and merger of two members viz. HSBC Bank Oman S A O G into Doha Bank QSC( which was not a member as on April 1, 2015 and became member subsequently) and ING Vysya Bank Ltd. with Kotak Mahindra Bank Ltd., total number of members stood at 134 as on March 31, 2016. BCSBI will continue its efforts to enlist eligible banks as members so that all bank customers benefit from the Codes. During the year under review an amount of `724.30 lakh was collected from members towards their annual 1

membership fees for the year 2015-16. Names of member banks as on March 31, 2016 are listed in Annex I. Monitoring of Code Implementation and visits to bank branches to assess implementation BCSBI, apart from its main task of preparing and periodically reviewing of Codes for customer service in banks, also looks into the aspect of ongoing monitoring of implementation of the Codes by the member banks. BCSBI has been monitoring the implementation of Code provisions by examining Annual Statement of Compliance (ASC); a self certified statement submitted by banks covering status of implementation of some of the important Code provisions. In addition to this, BCSBI has adopted a system of visits to branches / processing centres of banks to verify the position regarding ground level implementation of the Code of Bank s Commitment to Customers and Code of Bank s Commitment to Micro and Small Enterprises. Such visits to branches for verification are confined to a sample of branches selected at random and are undertaken by authorized representatives of BCSBI, who record their observations in a structured questionnaire on important Code provisions. In the previous year, 2107 branches of 47 banks located in 47 cities / towns and 59 Central Processing Centres were visited by BCSBI representatives. In addition, around 4300 customers of banks were interviewed to obtain their responses on implementation of the Codes. The outputs of branch visits and responses of customers were analyzed and it was observed that there was overall improvement in implementation of the provisions of both the Codes covered under the said round of branch visits. BCSBI Code Compliance Rating, 2015 The outputs of branch visits and responses of customers were utilized as inputs for rating of banks on Code compliance. BCSBI had engaged the services of CRISIL for developing a rating model. According to the rating model thus developed, Branch Visit findings and Customer Responses were converted into numerical score by assigning different weightage out of 100 to the parameters. These parameters, according to their character, were grouped into five broad groups, viz., Information Dissemination, Transparency, Customer Centricity, Grievance Redressal and Customer Feedback. For the first time, the data relating to complaints received by banks and those lodged by customers with Offices of Banking Ombudsman have been factored into Grievance Redressal segment of above mentioned rating framework. Based on the overall score achieved by a bank, a rating described as BCSBI Code Compliance Rating-2015 was awarded from out of four categories, viz., High, Above Average, Average and Below Average depicting the corresponding level of Code compliance of the bank. The rating exercise revealed that there has been considerable improvement in the compliance level as compared with the previous exercise. As many as 14 banks have achieved High rating this year as compared to only 5 last year. Similarly, number of Banks obtaining Average rating has come down to 10 from previous number of 17 though the number of banks in Above Average category has not changed much, as can be seen from the following table: 2

Sr. No Rating and (scoring scale) Number of Banks and percentage 3 2013-14 2014-15 1 High (85 and above) 5 11% 14 30% 2 Above Average (70 to less than 85) 25 53% 23 49% 3 Average (60 to less than 70) 17 36% 10 21% 4 Below Average(Below 60) 0 0 0 0 Total 47 100% 47 100% The findings of Branch Visits and Rating awarded were conveyed to Banks for further action and in the case of banks, which obtained Average rating, the Governing Council of BCSBI has held discussions with Top Management of such Banks in order to impress upon them the need for further strengthening their systems for Code compliance. For the first time, BCSBI has displayed on its website the ratings awarded to the 47 banks covered in the said exercise along with their performance in each parameter group. Code of Bank s Commitment to Micro and Small Enterprises (MSE Code) The Code of Bank s Commitment to Micro and Small Enterprises (MSE Code) was first brought out by BCSBI in May 2008 and subsequently reviewed and revised in August 2012. It reflects the member banks positive commitment to their Micro and Small Enterprise customers to provide speedy and transparent access to banking services. The Code contains obligations of banks towards the customers in their day-to-day banking operations. A fresh review of the Code was taken up and suggestions / views were sought from Member Banks, Indian Banks Association, Reserve Bank of India, Govt. of India, Small Industries Development Bank of India, Credit Guarantee Fund Trust for MSE, MSME Development Institute and select Industry Associations. Besides the above, views of the public were also sought by inserting a notice on the BCSBI website. Based on the suggestions received, MSE Code was revised and circulated in August 2015 for adoption by member banks. Code Monitoring Studies BCSBI undertook certain studies around select themes relating to Code provisions and also certain other important customer service related areas. During the year 2015-16, BCSBI conducted the following studies: Comparative Study of Charges levied by banks for SMS alerts A comparative study of charges levied by banks for SMS alerts to individual customers has been carried out by collating the relevant information from 48 banks having significant retail business. In accordance with the relevant RBI guidelines, if banks levy any charge for providing SMS alert service to its customer, the levy needs to be on actual usage basis. However, the study revealed that 22 out of 48 banks considered for the study were levying SMS alert charges on a lump sum basis, instead of levying the same on actual usage basis.

Study of information provided by Banks to customers at the time of opening of Savings Bank Account The Code of Bank s Commitment to Customers contains commitments of banks on providing certain important information and Most Important Terms and Conditions (MITC) governing the deposit facility to customers before opening of Savings Bank (SB) Account so as to enable the customer to make an informed decision. In this background, a quick study was undertaken to ascertain information provided by banks, in general, to the applicants approaching them for opening of Savings Bank account. For the purpose of study, SB Account opening forms of 17 major banks were perused as a sample. It was observed that the majority of banks have not evolved Most Important Terms and Conditions (MITC) to be provided to the customer before opening of the account and the information provided by the banks in other form was found to be inadequate to enable the customer to make an informed decision. Thus, BCSBI listed some of the important aspects on which banks need to provide information to the applicant in a well documented form of Most Important Terms and Conditions (MITC). The said list was shared with the banks with a request to evolve the MITC for SB Accounts on the basis of the same and make a practice to provide the same to customers before opening of Savings Bank Account. Study of Nursing Sick Micro and Small Enterprises (MSEs) BCSBI has undertaken a study of implementation of some of the provisions of the Code of Bank s Commitment to Micro and Small Enterprises related to Nursing Sick MSEs by collating relevant data from 10 major banks. It was observed that the banks, in general, have a system of identification of sick units out of accounts of MSEs which were categorized as NPAs. However, it was found that the percentage of viable sick units among the units on which banks have assessed viability was low. Thus the banks need to look into this area of the overall process of nursing sick MSEs so that some of viable sick units under MSE categories may not be missed out of the nursing programme. Study of High and Low performing Banks under Parameter Groups Information dissemination and Transparency In the process of rating of banks on Code compliance, it was noticed that the major cause of comparatively lower performance of some of the banks was their low score under parameter groups Information Dissemination and Transparency. Thus, BCSBI conducted a study of High and Low performing Banks under these Parameter Groups. Accordingly, 6 high performing and 15 low performing banks on implementation of the Code provisions grouped under abovementioned parameters were studied. The study was carried out by BCSBI officials by visiting Head offices (HO) and holding discussions with officials responsible for Code Compliance of these banks and also visits to a few branches of each of these banks along with their representatives. 4

Banking Codes and Standards Board of India A cross section of the participants of the 9th Annual General Meeting of the BCSBI held on June 19, 2015. Shri N Raja, then CEO, BCSBI addresses the customer meet at Bhopal. Also on the dais from left are Smt. Harshala Chandorkar, Senior V P, CIBIL, Shri A C Mahajan, Chairman, BCSBI and Shri R N Sahay, CGM, SBI. 5

Banking Codes and Standards Board of India At the customer meet held at Jaipur, seated on the dais are Shri R Giridharan, Banking Ombudsman, RBI, Shri A C Mahajan, Chairman, Shri Anand Aras, CEO and Smt. Harshala Chandorkar, Senior V P, CIBIL Shri Anand Aras, CEO, BCSBI addresses the customer meet at Mangaluru 6

Banking Codes and Standards Board of India Attending the customer meet at Coimbatore are from left Smt. Harshala Chandorkar, COO, CIBIL, Shri S Krishnan, GM, Canara Bank, Shri A C Mahajan, Chairman, Shri Anand Aras, CEO and Shri R Sathish, DGM, CEPD, RBI. Shri A C Mahajan, Chairman (left) and Shri Anand Aras, CEO are seen addressing the Conference of Chairmen of RRBs held at CAB, RBI, Pune during December 21-22, 2015. 7

Banking Codes and Standards Board of India Seen from left are Shri N Sivasankaran, GM, Canara Bank, Shri A C Mahajan, Chairman, BCSBI, Shri Anand Aras, CEO, BCSBI and Shri C V Venkatesh, GM, SBI at the meeting of the Controlling Heads of Banks at Thiruvananthapuram. Shri Anand Aras, CEO, BCSBI makes a presentation at the customer meet at Vishakhapatnam while Shri A C Mahajan, Chairman, BCSBI and Shri G Rangarajan, GM, Indian Bank look on. 8

During the process of the study, apart from identifying the bank specific areas which need further improvement, good practices noticed in the banks which have performed well were also shared with them so as to bring about overall improvement in their level on Code Compliance. Study on Adherence to Code Provisions by Regional Rural Banks and Urban Co-operative Banks Till recently, until the captioned study was conducted, BCSBI had been monitoring the Code implementation of RRBs and UCBs only through obtaining Annual Statement of Compliances (ASCs) as declared and submitted by them, while for commercial Banks (other than RRBs & UCBs), the monitoring of Code implementation and Compliance is verified through visits and verification by the BCSBI officials or their authorised persons at randomly selected branches of various banks. In order to bring about the parity gradually towards monitoring the level of Code compliance at RRBs, a study on Adherence to Code Provision was conducted at grass-root level of select 14 RRBs ( sponsored by nine PSU Banks), in two phases. The major findings are furnished below: 1. In many RRBs, the staff was unaware of BCSBI Codes. Also there had not been any conscious efforts by the RRBs to educate/create awareness of the BCSBI Codes amongst the staff & its Customers. Necessary corrective measures in this regard should be taken immediately. 2. Customer Service Committee of the Boards were not formed in many RRBs yet. RRBs should comply with the requirement in this regard at the earliest. 3. The Controlling authorities/corporate offices of RRBs were found lacking in monitoring the customer service meetings wherever conducted by branches and the concerned authorities were not following-up with the minutes of those meetings. 4. RRBs generally found not to have any system of displaying necessary information in the Comprehensive Notice Board as per format required by RBI. 5. The simplified procedure for opening BSBD - Small Accounts and KYC documents required for opening Basic Savings Bank Deposit Accounts were mostly not displayed at their branches. 6. Loan applications submitted by the borrower were not acknowledged, nor were there any indication of expected time line for disposal of application. All the concerned RRBs and the sponsor banks confirmed having taken necessary steps to address the shortcomings observed. This exercise of study at grass-root level has substantially increased the awareness amongst RRBs and their staff members. Most of the RRBs also felt encouraged and benefitted in terms of knowledge assimilation and awareness of their staff. As mentioned above, study of Code implementation by select eleven Urban Co-operative Banks was taken up by obtaining response to a structured questionnaire and discussion with officials on four groups of parameters i.e. Deposit Policy, Grievance Redressal Policy, Cheque Collection Policy and Compensation Policy. Based on the findings, the UCBs concerned were advised to initiate steps to implement the following and improve Code Compliance. 9

i) formulate and display customer centric policies. ii) initiate suitable steps for creating awareness of Codes. iii) display information on KYC documents required to be submitted by the customers for opening Basic Savings Bank Deposit Accounts and also simplified procedure for opening BSBD Small Accounts. iv) inform account holders at least three months in advance if their accounts are likely to be classified as dormant / inoperative. v) constitute Customer Service Committee and organise customer meet for exchange of ideas. vi) Acknowledge loan applications submitted by the borrower, indicating expected date of disposal. 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 are studied to find out whether there is systemic deficiency which can be remedied. During the year, BCSBI received 1473 complaints. All the complaints received are classified into twelve categories, based on the issues raised in the complaints, analysis of which indicates that most of the complaints pertained to deposits, loans and advances and credit cards. The profile of complaints is given in Annex II. BCSBI At a Glance 2014-15 2015-16 Members of BCSBI 130 134 Banks admitted as members during the year 4 6 * Applications in process for membership 1 2 Participation in : Town Hall Meetings / Customer 32 23 Awareness Programmes / Training Programmes Workshops / Conferences / Seminars 5 5 Customer Meets 8 10 Branches / Centralised Processing Centres visited to look into Code implementation 2166 Post visit assessments were made during the year Monitoring Studies Branches/Units visited 175 83 Credit Counselling cases handled 151 149 Complaints received and dealt with 615 1473 * Merger of a bank into an existing member bank and merger of another bank into a new bank which has been admitted during the year. 10

Conference of Principal Code Compliance Officers The Annual Conference of Principal Code Compliance Officers (PCCOs), representing all Member Banks of BCSBI, was held on July 14, 2015 in Mumbai. Shri S. S. Mundra, Deputy Governor, Reserve Bank of India (RBI) delivered the inaugural address and interacted with the participants. The meeting was also addressed by the Chairman, BCSBI, the Chief General Manager, Consumer Education and Protection Department, RBI and other senior officials. The Deputy Governor talked about the Model Policy on Customer Rights containing five basic rights of customers and urged banks to dissuade themselves from mis-selling third party products. He hinted that the level of awareness about BCSBI Codes among the staff and customers is not up to the mark and appreciated the impact of Customer Meets conducted by BCSBI. He referred to the annual exercise of Surveys conducted by BCSBI to look into the implementation of Code provisions and rating of select member banks on Code compliance. The Deputy Governor also drew the attention of the participants to two forms of financial illiteracy viz. Information deprived Illiterates (having lesser information / knowledge than the service providers) and Illiterate Illiterates (those who have just entered the formal financial / banking system). He highlighted the need of customer education on Basic Savings Account, investment, insurance and pension products besides spreading awareness about lifecycle needs and importance of financial savings to meet these needs. Spreading Awareness of the Codes The Codes are commitments of banks towards their customers. While spreading awareness of the Codes among the customers and staff of banks is the responsibility of banks, BCSBI supplemented their efforts by organizing a few Customer Meets at different places such as Amritsar, Bhopal, Coimbatore, Guwahati, Jaipur, Lucknow, Mangaluru, Ranchi, etc. Most of these Meets were held in association with CIBIL, wherein importance of maintaining a healthy credit history was also emphasized. As it was also observed during branch visits that banks own staff was not sufficiently conversant with the commitments contained in the Codes, BCSBI organized a few Meeting of the Controlling Heads of Banks to impress upon them the efforts to be made within the organization. Such Meetings of the Controlling Heads of Banks were held at Bengaluru, Guwahati, Kolkata, Patna and Thiruvananthapuram. In addition to the above, the CEO and other officials of BCSBI participated in the Awareness Programmes organized by Banking Ombudsmen of RBI and Banks. BCSBI has provided faculty support to training establishments such as College of Agriculture Banking (RBI), National Institute of Bank Management, Indian Institute of Bank Management, etc. The Chairman and the Chief Executive Officer of BCSBI also addressed the Chairmen of Regional Rural Banks who had gathered at RBI s College of Agricultural Banking for a National Conference. BCSBI Newsletter Customer Matters The quarterly Newsletter Customer Matters was launched in the year 2009. The primary objective of the Newsletter is to educate and disseminate information / decisions of the Banking Ombudsmen in the areas of complaints and regulatory developments relevant to Retail and Micro and Small Enterprise customers. A sampling of decisions taken by 11

Consumer Courts on bank-customer disputes, etc is also featured. During the year, the Newsletter covered certain critical topics such as Mis-selling A cause for concern, Credit Information Companies Credit Matters, etc. Funds Position As per the funding arrangement agreed with Reserve Bank of India upto 2015-16, BCSBI is required to utilise its entire interest income towards meeting its expenditure with the gap representing the excess of expenditure over income being met by RBI. During the year under review, the expenditure of BCSBI amounted to `260.56 lakh which was fully met out of interest income from the Corpus Fund invested. As such, BCSBI has not availed any funding facility from RBI during 2015-16. Since the funding support from RBI will cease from the year 2016-17 onwards, BCSBI will be required to meet its expenditure out of income generated from the funds invested. To enable BCSBI to meet the entire expenditure on its own, members contribution was enhanced by 100% for the year 2015-16. As in the past, the entire contribution made by the member banks in the form of registration fees and annual membership fees has been credited to the Corpus Fund as desired by them. As on March 31, 2016, the Corpus Fund amounted to `2993.49 lakh. With the proposed increase in membership fee for the year 2016-17, the Corpus will go up to `3788.49 lakh. BCSBI intends to build up the Corpus steadily with a view to becoming self sufficient since the RBI funding support has ceased from 2016-17. Acknowledgements BCSBI wishes to thank the top management of RBI for their continued guidance and support in discharging the responsibility cast on the BCSBI and including it in awareness programmes and town halls organized by its departments. BCSBI also wishes to thank Indian Banks Association and all Member Banks for their support and co-operation. 12

Annex I BCSBI members Sl. Name of the bank No. Scheduled Commercial Banks 1 AB Bank Limited 2 Allahabad Bank 3 Andhra Bank 4 Axis Bank Ltd. 5 Bank of America N. A. 6 Bank of Baroda 7 Bank of Ceylon 8 Bank of India 9 Bank of Maharashtra 10 The Bank of Nova Scotia 11 Barclays Bank PLC 12 Bhartiya Mahila Bank Ltd. 13 BNP Paribas Corporate and Investment Banking 14 Canara Bank 15 The Catholic Syrian Bank Limited 16 Central Bank of India 17 Citibank N. A. 18 City Union Bank Limited 19 Commonwealth Bank of Australia 20 Corporation Bank 21 Credit Agricole Corporate and Investment Bank 22 DBS Bank Ltd 23 DCB Bank Limited 24 Dena Bank 25 Deutsche Bank AG 26 Dhanlaxmi Bank Limited 27 Doha Bank QSC 28 The Federal Bank Ltd. 29 HDFC Bank Limited 30 The Hongkong and Shanghai Banking Corporation Limited 31 ICICI Bank Limited 32 IDBI Bank Limited 33 Indian Bank 34 Indian Overseas Bank 35 IndusInd Bank Limited 36 The Jammu & Kashmir Bank Ltd. 37 JP Morgan Chase Bank N. A. 38 Karnataka Bank Ltd. 39 The Karur Vysya Bank Limited 40 Kotak Mahindra Bank Limited 41 Krung Thai Bank Public Company Limited 42 The Lakshmi Vilas Bank Ltd. 43 Mashreq Bank PSC 44 The Nainital Bank Ltd. Sl. Name of the bank No. Scheduled Commercial Banks 45 National Australia Bank Limited 46 Oriental Bank of Commerce 47 Punjab & Sind Bank 48 Punjab National Bank 49 RBL Bank Limited 50 The Royal Bank of Scotland N.V. 51 SBM Bank (Mauritius) Ltd. 52 Shinhan Bank 53 Societe Generale 54 Sonali Bank Limited 55 The South Indian Bank Ltd. 56 Standard Chartered Bank 57 State Bank of Bikaner and Jaipur 58 State Bank of Hyderabad 59 State Bank of India 60 State Bank of Mysore 61 State Bank of Patiala 62 State Bank of Travancore 63 Syndicate Bank 64 Tamilnad Mercantile Bank Ltd. 65 UCO Bank 66 Union Bank of India 67 United Bank of India 68 Vijaya Bank 69 Yes Bank Ltd. Scheduled Urban Cooperative Banks 1 The Bharat Co-operative Bank (Mumbai) Ltd., Mumbai 2 Citizen Credit Co-operative Bank Ltd., Mumbai 3 The Cosmos Co-operative Bank Ltd., Pune 4 Dombivli Nagari Sahakari Bank Ltd.,Dombivli 5 Gopinath Patil Parsik Janata Sahakari Bank Ltd., Thane 6 Janata Sahakari Bank Ltd., Pune 7 Kallappanna Awade Ichalkaranji Janata Sahakari Bank Ltd., Ichalkaranji 8 The Karad Urban Co-operative Bank Ltd., Karad 9 Nagar Urban Co-operative Bank Ltd., Ahmednagar 10 Nagpur Nagarik Sahakari Bank Ltd., Nagpur 11 The Nasik Merchants' Co-operative Bank Ltd., Nashik 12 Nutan Nagarik Sahakari Bank Ltd., Ahmedabad 13 Punjab & Maharashtra Co-operative Bank Limited 14 The Saraswat Co-operative Bank Ltd., Mumbai 15 The SVC Co-operative Bank Ltd., Mumbai 16 The Surat Peoples' Co-op Bank Ltd., Surat 17 Thane Bharat Sahakari Bank Ltd.,Thane 18 The Zoroastrian Co-operative Bank Ltd., Mumbai 13

Sl. Name of the bank No. Regional Rural Banks 1 Allahabad UP 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 Aryavart 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 Sl. Name of the bank No. 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 Gramin Bank 35 Rajasthan Marudhara Gramin Bank 36 Saptagiri Grameena Bank 37 Sarva Haryana Gramin Bank 38 Sarva UP 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 Annex II Profile of Complaints Sr. No. Nature of Complaints 2014-15 2015-16 1 Deposit Accounts 234 299 2 Credit Cards 127 203 3 Pension 2 14 4 Tariff Schedule & Service Charges 14 63 5 Cheque Collection/Clearing Cycle Delayed Credit 18 43 6 ATM/Debit Cards 27 170 7 CIBIL Records 6 14 8 Compensation Policy 0 0 9 Harassment by Recovery Agents 10 23 10 Loans & Advances 116 298 11 Insurance Products 4 15 12 Miscellaneous 57 331 Total 615 1473 14

Statement of Accounts for the year 2015-16

M/s Gokhale & Sathe (Regd.) Chartered Accountants 308/309, 3 rd Floor Udyog Mandir No.1 7-C, Bhagoji Keer Marg Mahim, Mumbai 400 016 Tel: 022-43484241 Auditors Report We have audited the Balance Sheet of Banking Codes and Standards Board of India as at 31 st March 2016 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 31 st March 2016 and - in the case of Income & Expenditure Account of the trust for the accounting year ended on that date. For M/s. Gokhale & Sathe Chartered Accountants FRN:-103264W (Uday Sathaye) Place: Mumbai Partner Date: June 2, 2016 (Membership No.: 35107) 16

Year ended March 31, 2015 (`) FUNDS & LIABILITIES BANKING CODES AND STANDARDS BOARD OF INDIA Balance Sheet as on March 31, 2016 (As per Schedule VIII of Bombay Public Trusts Act, 1950) Year ended March 31, 2016 (`) Year ended March 31, 2015 (`) PROPERTY & ASSETS Year ended March 31, 2016 (`) Fixed Assets(Net of Depreciation) (Annex-III) Trust Funds or Corpus 37,573 Computer and Peripherals 44,701 20,22,69,000 Balance as per last Balance Sheet 22,69,19,000 - Furniture & fixtures 2,394 2,46,50,000 Add: Contribution received during the year (including registration fees) 7,24,30,000 29,93,49,000 - Immovable Properties - 47,095 22,69,19,000 Investments - Other earmarked funds - 2,17,16,662 Govt Securities(Cost) (Annex I) 2,17,16,662 - Loans (Secured or unsecured) - Public Awareness Fund - Advances- - 2,19,96,343 Balance as per last Balance Sheet 2,20,94,859 - To others- - 76,56,396 Less: Trd to Income & Expenditure account 94,55,656 Tax Deducted at Source Add: 77,54,912 Trd from Income & Expenditure account 1,19,00,155 2,45,39,358 16,590 A.Y 2007-08 16,590 2,20,94,859 24,415 A.Y 2013-14 24,415 2,29,59,000 Advance from Member Banks- Membership Fee for the following year 3,58,36,000 42,928 A.Y 2014-15 42,928 83,933 3,337 Unamortised premium on GOI Securities 1,979 1,07,42,234 Advances from RBI - 22,67,15,632 Fixed Deposit Receipts with banks (Annex II B) 28,02,15,632 Interest Outstanding 82,162 Professional and Audit Fees Payable 1,04,500 2,25,70,727 On Fixed Deposit Receipts with banks 3,82,61,695 7,00,616 On Government of India Securities 6,98,540 3,89,60,235 9,130 TDS A.Y 2015-16 0 - TDS A.Y 2016-17 10,000 1,09,77,905 Cash & Bank Balances (Annex II A) 1,88,13,322 28,28,06,385 Total 35,98,38,858 28,28,06,385 Total 35,98,38,858 Subject to Notes on Accounts As per our report of even date (A. C. Mahajan) Chairman M/s.Gokhale & Sathe Chartered Accountants Firm Regn. No.103264W (Anand Aras) Chief Executive Officer Banking Codes and Standards Board of India (Uday Sathaye) Partner Membership No.35107 Place: Mumbai Date: June 02, 2016 Place: Mumbai Date: June 02, 2016 17

BANKING CODES AND STANDARDS BOARD OF INDIA Schedule of Investments belonging to the Trust as on March 31, 2016 ( As per Part III - Schedule VIII of Bombay Public Trusts Act, 1950) 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 Annex-I (Amount in Rupees) Face Value Cost Rate of interest borne by investments 1 2 3 4 5 6 At the beginning of the year (i) Shares - (as on April 1, 2015) (ii) Bonds and Debentures - (iii) Deposits - (iv) Others - (v) Public Securities a) 7.49% GOI Securities 2017 1,20,00,000 1,14,70,414 7.49% b) 7.59% GOI Securities 2016 25,00,000 24,66,248 7.59% c) 7.99% GOI Securities 2017 28,00,000 28,00,000 7.99% d) 8.07% GOI Securities 2017 14,80,000 14,80,000 8.07% e) 8.24% GOI Securities 2018 35,00,000 35,00,000 8.24% Total 2,22,80,000 2,17,16,662 Increase during the year (2015-16) - - Decrease during the year (2015-16) - - Total at the end of the year (as on March 31, 2016) 2,22,80,000 2,17,16,662 As on March 31, 2015 Bank Accounts BANKING CODES AND STANDARDS BOARD OF INDIA Annexure to Balance Sheet as on March 31, 2016 Annex-II (A & B) (Amount in Rupees) As on March 31, 2016 In Savings Account 1,07,52,920 - ICICI Bank 10,37,520 1,22,764 - Yes Bank 1,77,68,938 In Current Account 1,02,221 - Central Bank of India 6,864 1,09,77,905 Total(A) 1,88,13,322 In Fixed Deposits 7,57,15,632 - State Bank of Mysore 11,88,15,632 5,85,00,000 - Vijaya Bank 7,23,00,000 9,25,00,000 - State Bank of Travancore 7,96,00,000 - - ICICI Bank 95,00,000 [All accounts in the name of Banking Codes and Standards Board of India] 22,67,15,632 Total(B) 28,02,15,632 23,76,93,537 (A)+(B) 29,90,28,954 As per our report of even date (A. C. Mahajan) Chairman For M/s.Gokhale & Sathe Chartered Accountants Firm Regn. No.103264W (Anand Aras) Chief Executive Officer Banking Codes and Standards Board of India (Uday Sathaye) Partner Membership No.35107 Place: Mumbai Place: Mumbai Date: June 02, 2016 Date: June 02, 2016 18

Annex-III BANKING CODES AND STANDARDS BOARD OF INDIA Annexure to Balance Sheet as on March 31, 2016 Particulars 01-4-2015 Opening Balance (`) Additions (`) GROSS BLOCK (`) Opening Balance Depreciation (`) 31-03-2016 Charge for the year Closing Balance NET BLOCK (`) COMPUTER 19,454 27,689 47,143 19,454 526 19,980 27,163 Printer (HP Officejet Pro 8600+) 2,519 6,700 9,219 2,519 1,002 3,521 5,698 Tally Software 15,600 2,000 17,600 15,600 (5,640) 9,960 7,640 Knowledge Manangement Tool Software - 6,000 6,000-1,800 1,800 4,200 Furniture - 2,520 2,520-126 126 2,394 Grand Total of 2015-16 37,573 44,909 82,482 37,573 (2,186) 35,387 47,095 Grand Total of 2014-15 40,590 53,343 93,933 40,590 15,770 56,360 37,573 As per our report of even date (A. C. Mahajan) Chairman For M/s.Gokhale & Sathe Chartered Accountants Firm Regn. No.103264W (Anand Aras) Chief Executive Officer Banking Codes and Standards Board of India (Uday Sathaye) Partner Membership No.35107 Place: Mumbai Place: Mumbai Date: June 02, 2016 Date: June 02, 2016 19

BANKING CODES AND STANDARDS BOARD OF INDIA Income & Expenditure Account for the year ended March 31, 2016 (As per Schedule IX of Bombay Public Trusts Act, 1950) Year ended March 31, 2015 (`) EXPENDITURE Year ended March 31, 2016 (`) Year ended March 31, 2015 (`) INCOME Year ended March 31, 2016 (`) - To Expenditure in respect of Properties - - By Rent - - 9,300 Repairs and maintenance 51,899 By Interest 1,20,37,535 To Establishment Expenses 1,28,97,335 17,67,080 On Securities 17,18,030 27,07,153 To Remuneration to Trustees 25,29,100 2,30,669 On Savings Bank account 3,95,686 - To Legal Expenses - 1,96,20,977 On Fixed Deposits with banks 2,63,87,038 28,090 To Audit Fees 38,282 3,255 On Income Tax Refund - 2,85,00,754 - To Contribution and Fees - - By Dividend - To Amount written off - By Donation in cash or kind - 1,358 Premium on Govt Securities amortised 1,358 - By Grants (From RBI) - 3,440 To Miscellaneous expenses - - By Miscellaneous receipts - 56,360 To Depreciation 35,387 3,81,350 By Premium on maturity of Government Securities - 77,54,912 To Amount Transferred to Public Awareness Fund 1,19,00,155 76,56,396 By transfer from Public Awareness Fund 94,55,656 70,61,579 To expenditure on the objects of the trust 1,05,02,894-2,96,59,727 Total 3,79,56,410 2,96,59,727 Total 3,79,56,410 Subject to Notes on Accounts As per our report of even date (A. C. Mahajan) Chairman For M/s.Gokhale & Sathe Chartered Accountants Firm Regn. No.103264W (Anand Aras) Chief Executive Officer Banking Codes and Standards Board of India (Uday Sathaye) Partner Membership No.35107 Place: Mumbai Place: Mumbai Date: June 02, 2016 Date: June 02, 2016 20

Schedule A BANKING CODES AND STANDARDS BOARD OF INDIA Notes forming part of Accounts for the year ended 31 st March, 2016 1. Significant Accounting Policies a. The Financial Statements are prepared on Accrual Basis. b. Depreciation on Fixed Assets is provided using the Written Down Value Method as per the Income Tax Act, 1961 as below: Asset Rate Computer 60% Printer 60% Tally Software 60% Knowledge Management Tool Software 60% Furniture 10% c. Investments under Held to Maturity (HTM) category are carried at Acquisition Cost. The premium paid, if any, under this category is amortised over the residual life as per the guidelines of the Reserve Bank of India and the policy of BCSBI. d. Investments are valued at cost or market value, whichever is lower. 2. Advance for Expenses from Reserve Bank of India Out of the amount advanced by Reserve Bank of India for meeting expenses, the unspent opening balance of Rs.1,07,42,234/- was shown as advance on the Liability side in Balance Sheet during FY 14-15 has been subsequently refunded to the RBI during the FY 15-16. 3. Corpus Fund As per the funding proposal agreed to by the Reserve Bank of India, BCSBI continues to build up the Corpus from registration and membership fees so that when the RBI funding ceases BCSBI will be self financed. The member banks have also desired that the entire contribution made by member banks in the form of Registration Fees and Membership Fees be credited to the Corpus. Accordingly, the Registration Fees and the Membership Fees are credited to the Corpus Fund during the year. 4. Public Awareness Fund The Board has transferred an amount of Rs.1,19,00,155/- to the Public Awareness Fund FY 15-16 from the Income & Expenditure Account. Public Awareness Fund created during the FY 10-11 to the tune of Rs.94,55,656/- was transferred to Income & Expenditure Account during the FY 15-16. 5. 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 (A.C. Mahajan) Chairman For M/s. Gokhale & Sathe Chartered Accountants Firm Regn No.103264W (Anand Aras) (Uday Sathaye) Chief Executive Officer Partner Banking Codes and Standards Board of India Membership No.35107 Place: Mumbai Place: Mumbai Date: June 02, 2016 Date: June 02, 2016 21