Based on the recommendation of the CPPAPS, the Annual Policy Statement for 2005-06 announced the decision to set up an independent Banking Codes & Standards Board of India on the model of the mechanism in the UK in order to ensure that comprehensive code of conduct for fair treatment of customers is evolved and adhered to.
The codes and standards, together with the institutional mechanism to monitor them, are expected to enhance the quality of customer service, to  the individual customer in particular. The codes will bring about greater transparency in the system and also tackle the issue of information asymmetry.