of the IBA Code for Banking Practice
Indian Banks' Association
(IBA) Code for Banking Practice (hereinafter referred
to as the IBA Code/the Code) is issued by the Indian Banks'
Association (hereinafter referred to as the Association)
which has the concurrence of the Reserve Bank of India.
This is a non-statutory
Code issued on a voluntary basis. It is to be observed
by the Member Banks in dealing with their personal customers
(hereinafter referred to as customers). It covers specifically
banking services such as current accounts, savings and
other deposit accounts, advances (loans and overdrafts).
However, principles of the Code will apply to overall
relationship between the Member Banks themselves and their
The recommendations set out in the Code are supplementary
to and do not supplant any relevant legislation, codes,
guidelines or rules applicable to Member Banks under the
Banking Regulation Act, 1949, the Reserve Bank of India
Act, 1934, the Negotiable Instruments Act, 1881, the Banking
Companies Acquisition and Transfer of Undertakings Act,
1970 and 1980 or any other law in force in India governing
the Banking Law and Practice.
The Association experts
its respective Member Banks to comply with the Code in
letter and spirit and observance/compliance thereof shall
be monitored by a Committee to be constituted at the Association.
The Code becomes effective
from 1st September, 1999 and would also be subject to
review/revision from time to time; at least once in every