• Quick links
• Home
• About BCSBI
• Memorandum
• Rules And Regulations
• Code of Bank's Commitment to Customers
• Code of Bank’s Commitment to Micro & Small Enterprises
• The Codes: in Hindi
• The Codes: in Regional Languages
• Banking Code Rules
• List of Members
• Speeches
• Press Releases
• Publications
• News Bulletin
• Grievance Redressal
• Governing Council
• Contact Us
• FAQs

• Preliminary
• Definition
• Membership Of The Society
• Meeting Of Member Banks
• First Governing Council
• Composition Of The Subsequent Governing Council
• Terms Of Office And Retirement
• Resignation Of The Chairman And Members Of The Governing Council
• Vacation Of Office By The Members Of The Governing Council
• Meetings Of The Governing Council
• Powers And Functions Of The Governing Council
• First Chief Executive Officer
• Appointment Of Subsequent Chief Executive Officer
• Powers And Functions
• Committees
• Annual Budget
• Maintenance Of Books Of Accounts
• Statement Of Accounts
• Furnishing Of Annual Accounts And Auditor's Report To Society
• Alteration, Extension Or Abridgment Of Purposes
• Representation In Suits And Other Legal Proceedings
• Dissolution Of Society
• Amendment Of Rules
• Certificate

Preliminary

1. The Society shall not be operated for profit and no part of its income shall accrue to any of its member banks or its officials or any member of the Governing Council, provided that nothing herein contained shall prevent making of any payment, in good faith of, remuneration, honoraria, perquisites, sitting fees, facilities or benefits of any nature whatsoever to any member of the Governing Council, officials or anyone else as the Council deems fit, in return for any service rendered to the Society.

2. The aims and objects of the society shall be as given in the Memorandum

^Top

Definition

In these Rules, unless the context requires otherwise:

1. "Act" means the Societies Registration Act, 1860 (Act XXI of 1860) in its application to the State of Maharashtra;

2. "Chairman" means the Chairman of the Governing Council referred to in Rule 6 or 7;

3. "Chief Executive Officer" means the Chief Executive Officer of the Society referred to in Rule 13, or as the as may be, in Rule 14;

4. "Memorandum" means the Memorandum of Association of the Society;

5. "Representative" means an officer of the member bank, nominated by that bank to represent it;

6. "Society" means "THE BANKING CODES AND STANDARDS BOARD OF INDIA"

^Top

Membership Of The Society

1. The subscribers to the Memorandum shall become members of the Society only on signing the covenant with the Society agreeing to comply with the Codes and Standards and paying the fee as specified and fresh members may be admitted in accordance with the provisions of these Rules.

2. Membership of the Society shall be open to all banks that sign the covenant with the Society agreeing to comply with the Codes and Standards.

3. A bank agreeing to comply with the Codes and Standards shall make an application to the Society along with such fee as may be specified from time to time.

4. The Society shall maintain a roll or list of member banks with their addresses in accordance with the provisions of Societies Registration (Maharashtra) Rules, 1971.

5. A member bank shall pay such annual subscription as may be specified by the Society from time to time.

6. Member banks shall be entitled to get from the Society, the information and particulars in respect of the national and international banking Codes and Standards.

^Top

Meeting Of Member Banks :

1. The Society shall convene the annual general meeting of the member banks every year and the meeting shall be attended by the respective representatives who shall have the right to vote.

2. Five members present through their representatives shall be the quorum.

3. If the quorum is not present, the meeting shall stand adjourned to the same day in the next week, at the same time and place, or to such other day and at such other time and place as the Governing Council may determine.

4. If at the adjourned meeting also, a quorum is not present within half an hour from the time appointed for holding the meeting, the members present shall be a quorum.

5. The Annual General meeting shall be presided over by the Chairman and in his/her absence the members of the Governing Council present shall select one of them to preside over the meeting.

6. The Society shall, at each annual general meeting, appoint an auditor or auditors for auditing the accounts of the Society in accordance with the provisions of the Act and the Societies Registration (Maharashtra) Rules, 1971 and fix their remuneration.

7. All decisions shall be taken at the meeting by majority either by show of hands or by secret ballot as may be decided by the Chairman.

8. The Society shall, at each annual general meeting, review the activities of the Society and approve the accounts of the Society.

9. On the requisition of two third in number of the member banks of the Society, the Chairman shall within 15 days from the date of such requisition proceed duly to call an extraordinary general meeting of the Society. The requisition shall set out the matters for the consideration of which the meeting is to be called, shall be signed by the requisitionists, and shall be addressed to the Governing Council.

Provided that if within half an hour from the time appointed for holding a meeting upon a requisition, a quorum is not present, the meeting shall stand dissolved.

^Top

First Governing Council :

1. The individuals whose names are mentioned in Clause IV of the Memorandum shall be the members of the first Governing Council.

2. The term of the first Governing Council shall consist of two successive terms of three years and two years respectively. On the expiry of the first term of three years, Reserve Bank shall nominate members thereto for the second term of two years.
   Provided that the members retiring on the expiry of the first term shall be eligible for renomination for the second term.
   Provided further that the term of office of a member of the first Governing Council shall always be subject to the pleasure of Reserve Bank.

3. On the expiry of the second term, the members of the first Governing Council shall remain in office till the Governing Council is reconstituted in accordance with Rule 7.

4. Where a vacancy arises in the office of Chairman or any member of the first Governing Council, due to incapacitation or resignation or death or any other reason, the resulting vacancy may be filled by nomination by Reserve Bank.

Provided that the member so nominated shall hold office only up to the date up to which the member in whose vacancy he is nominated would have held office if it had not been vacated as aforesaid.

^Top

Composition Of The Subsequent Governing Council :

1. On the expiry of the term of the first Governing Council, the subsequent Governing Council shall be constituted in the manner specified in this Rule.

2. The Governing Council shall have not more than six members, consisting of, -

1. upto three members nominated by Reserve Bank;

2. upto two members nominated by the member banks in consultation with the Reserve Bank; and

3. the Chief Executive Officer.

3. The persons to be nominated shall be persons of eminence and competence or are experts in the field of banking, law, accountancy, information technology, rural development or representing sectors of depositors' / consumers' or such other fields and sectors as are considered relevant to the aims and objects of the Society.
   Provided that the officials in the employment of the member banks shall not be nominated as members of the Governing Council.

4. The members of the Governing Council shall elect a Chairman from among themselves.

5. If no such Chairman is elected for any reason, including a tie in votes, the Reserve Bank shall designate a member of the Governing Council as the Chairman of that Governing Council.

^Top

Terms Of Office And Retirement :

1. All members of the Governing Council, nominated under Rule 7 shall hold office for a term not exceeding three years.
   Provided that the term of office of members nominated by the Reserve Bank shall be subject to the pleasure of that Bank.

2. The members of the Governing Council so retiring shall be eligible for re-nomination, for one more term i.e. maximum of six years.

^Top

Resignation Of The Chairman And Members Of The Governing Council

1. The Chairman may, by writing under his / her hand addressed to the Governing Council, resign from the Governing Council.

2. A member of the Governing Council may, by writing under his / her hand addressed to the Chairman, resign from the Governing Council.

^Top

Vacation Of Office By The Members Of The Governing Council:

The office of a member of the Governing Council shall become vacant if he / she absents himself / herself from three consecutive meetings of the Governing Council, without obtaining leave of absence from the Governing Council.

^Top

Meetings Of The Governing Council :

1. The Governing Council shall meet at least once in three months. The Chief Executive Officer shall convene meetings of the Governing Council in consultation with the Chairman and unless otherwise directed by the Chairman, 7 clear days' notice of the meeting shall be given to the members.

2. If a vacancy in the office of the member of the Governing Council occurs, the continuing members shall act as if no vacancy had occurred and no act or proceedings of the Governing Council shall be deemed invalid merely by reason of a vacancy in the Governing Council or a defect in the appointment of a person acting as a member.

3. The Chairman shall have the power to invite any person or persons not being members of the Governing Council to attend the meetings of the Governing Council and take part in the deliberations but such invitees shall not be entitled to vote.

4. The quorum for any meeting of the Governing Council shall be more than one half of the total number of members of the Governing Council, out of which the majority shall be the members nominated by Reserve Bank under sub-rule (2) of Rule 7. If there is no quorum, the meeting shall stand adjourned and be held in the following week, as directed by the Chairman. If on the adjourned date also no quorum of members assembles, the meeting shall continue as if quorum was there.

5. The Governing Council may meet at such places as may be determined by the Governing Council. The Chairman shall preside over all meetings of the Governing Council and in his / her absence the meeting shall be presided over by a member chosen by the other members present.

6. All decisions shall be taken at the meeting by majority either by show of hands or by secret ballot as may be decided by the Chairman. In case of tie in votes, the Chairman or as the case may be the presiding member shall have a second and casting vote, which shall be final.

7. A resolution in writing signed by a majority of the members shall be deemed to be the resolution passed by the Governing Council and shall be deemed to have been passed on the date on which the last signatory affixes his signature to it;
   Provided that any resolution passed in such a manner through circulation shall be placed before the next meeting for noting of the Governing Council;

^Top

Powers And Functions Of The Governing Council :

1. The general superintendence, direction and control of the affairs and funds of the Society shall be vested in the Governing Council which may exercise all powers and do all acts and things which may be exercised or done by the Society.

2. An annual review of the activities of the Society shall be made by the Governing Council and a copy thereof shall be laid before the annual general meeting of the Society and may also be published in such manner as may be decided by the Governing Council.

3. A review of the activities of the Society shall be made by the Reserve Bank in a meeting with the Governing Council on completion of four years and at the beginning of the fifth year from the registration of the society and consider strategies of the Society for future.

4. Without prejudice to the generality of the powers conferred by sub- rule (1), the Governing Council shall have power:

1. To determine

1. Financial and managerial policies;

2. Priorities for the different activities of the Society;

3. Remuneration, honoraria, perquisites, facilities, sitting fees or benefits of any nature whatsoever that may be paid or provided to any member of the Governing Council, the Chief Executive Officer, member of any committee, official or special invitee or other persons as the Governing Council may deem fit, in return for any service rendered to the Society.

4. Establishment and maintenance of Provident and other benefit funds for the staff of the Society;

5. Duties and conduct, salaries and allowances and other conditions of service of officers and other employees of the Society;

6. Any other matter which is to be or may be provided.

2. To establish and maintain a fund, by making appropriation to such extent as may be decided by the Governing Council from time to time, from out of the monies received from Reserve Bank of India, member banks or other monies received by the Society in any other way.

3. To utilize a part or whole of the funds of the Society towards capital and recurring expenditure of the Society, to make appropriate investments as per the law and deal with the funds in any other way as may be necessary for the benefit of the Society.

4. To acquire by way of purchase or gift or to take on lease or hire or otherwise temporarily or on permanent basis, any movable or immovable property.

5. To sell, assign, mortgage, lease, exchange, transfer or otherwise deal with all or any property, moveable or immovable, of the Society in the way it may find it necessary and to authorize the Chief Executive Officer or any other employee of the Society to execute requisite documents to carry out such transaction, and to take necessary action for proper maintenance of any such building, moveable or immovable property.
   To borrow amounts for the purpose of carrying out the activities of the Society on the security of its assets or otherwise.

6. To authorize the Chief Executive Officer or any other employee of the Society to draw, accept, make, endorse, discount, execute, sign, issue or otherwise deal with cheques, hundies, drafts, certificates, receipts, Government securities, promissory notes, bills of exchange or other instruments and securities whether negotiable or transferable or not, subject to such conditions as may be specified.

5. The Governing Council shall sanction expenditures and investments of the funds of the Society and shall have the powers to delegate sanction of expenditure and investment of funds, subject to such conditions as it may specify.

6. The Governing Council shall have the powers to make, alter or rescind regulations of procedure as it may find necessary for the management of the affairs of the Society.

7. The Governing Council shall have the powers to approve the research activities and other programmes submitted to it for consideration by the Chief Executive Officer.

^Top

First Chief Executive Officer :

The member designated as Chief Executive Officer in Clause IV of the Memorandum shall be the Chief Executive Officer on the registration of the Society.

Appointment Of Subsequent Chief Executive Officer :

1. The Chief Executive Officer of the Society shall be appointed by the Governing Council and shall hold his office during the pleasure of the Governing Council.
   Provided that in the event of the vacancy arising in the post of Chief Executive Officer, due to incapacitation or resignation or death or any other reason, the Chairman of the Governing Council shall have the authority to appoint an interim successor to the Chief Executive Officer, for a period of six months or, till the appointment of successor, whichever is earlier.

2. The Chief Executive Officer shall be legally competent to represent the Society in all legal and other official proceedings.

3. The Chief Executive Officer shall be ex officio member of the Governing Council.

^Top

Powers And Functions :

1. The Chief Executive Officer shall have the following powers and functions, namely:-

1. formulation, management and administration of all programmes, projects and other activities of the Society;

2. preparation of the annual budget for submission to the Society at its Annual General Meeting;

3. selection of projects within the programmes approved annually by the Governing Council;

4. entering into contracts and agreements subject to policy guidelines and annual budget authorizations given by the Society at its annual general meeting and to disburse funds.

5. procuring services including professional, academic, technical, clerical, maintenance, security and other administrative staff as are required to carry out the functions of the society, subject to the Rules made by the Governing Council.

6. exercising such other powers and performing such other functions as may be delegated or assigned to him by the Governing Council

^Top

Committees :

The Governing Council may constitute Committees for such purposes, on such terms and with such powers as it may consider necessary or desirable.

Annual Budget :

An annual budget shall be prepared and submitted by the Chief Executive Officer in the form and manner prescribed under the Bombay Public Trusts Act, 1950 and the Bombay Public Trusts Rules, 1951.

Maintenance Of Books Of Accounts :

1. The Society shall cause to be maintained such books of account and other books in relation to its accounts in such form and in such manner as may be prescribed under the Societies Registration (Maharashtra) Rules, 1971.

2. The financial year of the Society shall be from the 1st April of each year to the 31st March of the next year.

^Top

Statement Of Accounts :

The Society shall, as soon as may be, after closing the annual accounts, prepare a statement of accounts in such form as the Governing Council may, in consultation with the auditors of the Society, determine.

Furnishing Of Annual Accounts And Auditor's Report To Society:

1. A copy each of the annual accounts of the Society together with the auditor's report thereto and a report on the work undertaken during the year shall be furnished to the members of the Society.

2. A copy of the Annual Report of the Society as approved by the Annual General Meeting shall be placed in public domain within 30 days.

Alteration, Extension Or Abridgment Of Purposes:

 The Society may alter, extend or abridge the purposes for which it is established or amalgamate the Society either wholly or partially with any other such Society, in accordance with Section 12 of the Act.

^Top

Representation In Suits And Other Legal Proceedings:

For the purpose of Section 6 of the Act, the person in whose name the Society may sue or be sued shall be the Chief Executive Officer of the Society.

Dissolution Of Society:

The dissolution of the Society and adjustment of its affairs shall be in accordance with Sections 13 and 14 of the Act and in accordance with the provisions of any other law applicable thereto.

^Top

Amendment Of Rules:

 These Rules may be amended by the member banks by a resolution passed in a general meeting of the member banks in which the votes cast in favour of the resolution is not less than twice the number of votes if any cast against it.

Certificate :

We, the several persons whose names and addresses are subscribed hereto being members of the first Governing Council of the Society, certify the above to be correct copy of the Rules of "THE BANKING CODES AND STANDARDS BOARD OF INDIA"