Our Bank, Bank of India being one of the leading PSU Banks, has introduced the Code of Fair Banking Practices for our domestic branches. The information contained herein reflects our commitment to provide service of a high order in line with our Bank’s Mission and Vision statement. This code would be subject to periodical review to ensure its continuous relevance. We value and solicit any suggestions from our valued clientele for improvement.

This code sets out the standards of fair banking practices which shall be observed by our domestic branches in our relations with all borrower-customers. The code is put in place to promote fair banking practices, though this is not a legal document creating rights and obligations for both the Bank and the borrower-customers. This helps, our existing and prospective borrower customers, in understanding the standard of behaviour which they can expect from our staff at our domestic branches.  This code is applicable to all our borrower-customers excepting those who have/propose to have facilities against Bank’s own Term Deposit receipts, shares and securities, Govt. Bonds, NSCs, KVPs, IVPs, Units of UTI, LIC Policies are other such paper securities.

To provide professional, efficient, courteous, diligent and speedy services in the matter of lending.

Not to discriminate on the basis of religion, caste, sex, descent or any of them.

To be fair and honest in advertisement and marketing of Loan Products.

To provide customers with accurate and timely disclosure of terms, costs, rights and liabilities as regards loan transactions.

If sought, to provide such assistance or advice to customers applying for loans.

To attempt in good faith to resolve any disputes or differences with customers by setting up complaint redressal cells within the organisations.

To comply with all the regulatory requirements in good faith.

To spread general awareness about potential risks in contracting loans and encourage customers to take independent financial advice and not act only on representation from banks.

2.FAIR PRACTICES :-

Product Information :-

2.1 A prospective customer would be given all the necessary information about the product needed by the customer.

2.2  The loan application would be acknowledged outlining the time frame within which  the Bank would convey its decision.

2.3  All the information requirements of the Bank for considering loan applicable would be discussed and shortfalls if any would be communicated to the applicant within a  maximum period of 10 days.

2.4  All applications will generally be decided – within following stipulated time frames –  after  the receipt of full information needed from the prospective borrower:

3. Interest Rates :-

3.1  Interest rates for different loan products would be made available through and in any one or all of the following media, namely :

a) In our Bank’s Web site

b) Through Print Media

c) Through prominent display in the branches and at other delivery points

d) Through other media from time to time.

3.2   Customers would be entitled to receive periodic updates on the interest rates applicable to their accounts.

3.3 On demand, customers can have full details of method of application of interest.

3.4 Revision in interest rates :-

a) Our Bank would notify immediately or as soon as possible any revision in the existing interest rates and make them available to the customers in the media listed in para      3.1

b) Interest rate revisions to the existing customers would be notified within 3 working days from the date of change, through any of the methods listed in para 3.1.

3.5 Default Interest/Penal Interest :-

     Our Bank would notify clearly about the default interest/penal interest rates to the prospective customers.

4.  Charges :-

     Our Bank would give details of charges applicable to loans while accepting the applications.

Loan application forms and Draft documents or such other papers shall contain all the terms and conditions relating to the product.

 After bank agrees to sanction credit facilities, the borrower would be given a written communication giving the full particulars of amount sanctioned, terms and conditions, responsibilities of borrower and Bank.

If Bank rejects the applications, the reasons would be communicated to the borrower.Our Bank would show, if demanded, draft of the documents that the customer is  required to execute and would also explain, if requested, the relevant terms and   sconditions for sanction and disbursement of loan. 

Bank would supply copies of documents, executed by the borrower/ guarantor, onrequest at nominal charges.

6.   Account Practices :-

Our Bank would provide regular statement of accounts, unless not found necessary  by the customers.

Our Bank would notify relevant due dates for application of agreed interest, penal interest, default interest, and charges if they are not mentioned in the Loan applications, documents or correspondence.

 Our Bank would notify in advance any change in accounting practices that would  affect the customer, before implementation.

7.   Information Secrecy :-

a. All personal information of the customer would be confidential and would not be disclosed to any third party unless agreed to by the customer.  The term ‘Third Party’ excludes all Law Enforcement Agencies, Credit Information Bureau, Reserve Bank of India, other banks and financial institutions.

b.  Subject to above Para, customer information would be revealed only under the following circumstances, namely :

      If our Bank is compelled by law.

      If it is in the Public Interest to reveal the information.

      If the interests of our Bank require disclosure.

8.   General :-

Wherever Foreign Exchange derivative products are involved bank would not accept any liability and customers are advised to take informed decisions.

Bank reserves the right in case of default and/or non-adherence of terms and  conditions to enforce securities available for recovery of dues subject to observing normal procedures and after giving due notice.

Bank shall refrain from interference in the affairs of the borrower except to the extent provided in the terms and conditions of sanction unless new information not disclosed earlier comes to the knowledge of the Bank.

The Bank shall release all securities on receipt of repayment of loan and clearing the dues in full by a borrower subject to any legitimate right of lien or claim.

9.  Grievance Redressal :-

Our Bank has already put in place a grievance redressal mechanism where customer’s complaints and suggestions are deliberated and acted on.Any aggrieved customer can refer his/her complaint to the Branch concerned and if the complaint remains unresolved he/she may demand for the complaint book which is maintained at our Branch to record his/her complaint and obtain an acknowledgment   immediately.  The complaint would be looked into and all endeavour would be made  to resolve the same or give a suitable reply within a reasonable period of say 3  weeks.

The Bank would also conduct periodical review of this complaints redressal mechanism and shall submit a report to the Board of Directors of the Bank.