From time to time IBA has been devising model policy on areas of banking to serve as benchmark and also as guidance material to banks to formulate their own model policies. With liberalization in the financial system and deregulation of interest rates, banks are now free to formulate deposit products within the broad guidelines issued by RBI. Accordingly, the Model Deposit Policy was framed.

"Code of Bank's Commitment to Customers", the comprehensive fair practice code, was released by RBI Governor, Dr. Y V Reddy on 1st July 2006. The Banking Codes and Standards Board of India (BCSBI) would monitor the implementation of the Code. Banks are in the process of adopting the "Code of Bank's Commitment to Customers" a voluntary code.

The Code of Bank's Commitment to Customers makes reference to number of policies governing bank's products and services. The Managing Committee of IBA was of the view that banks might need to review some of these policies while implementing the Code. Accordingly, IBA had formed a Working Group under the Chairmanship of Mr. R S Reddy, Executive Director, Union Bank of India to draft Model Policy Documents covering areas which find mention in the Code. To facilitate the task of the Working Group, we had sought feed-back from members on existing policy documents they have covering various aspects of customer services.

After detailed deliberations on the suggestions received from member banks, Working Group drafted the following Model Policy Documents;

a. Model Policy on Collection of Cheques/Instruments
b. Model policy for grievance redressal in banks
c. Model Compensation policy
d. Model policy on Collection of dues and repossession of security

Managing Committee of the Association examined the above documents at its meeting held on 30th December 2006 and approved the same for circulation among member banks for their consideration. While approving the policy documents, the Committee felt that these Model Documents would help member banks in framing their own policy documents and banks could make necessary changes to meet their business/operational requirements.

Customers may be guided by policy documents of respective banks.

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