Last year, with RBI initiative IBA has come out with a model Fair Practices Code. The Code is a public document that enlists what all a customer can expect from his bank. It also indicates the responsibilities of banks while giving different kinds of banking services. IBA has further come out with a Model Deposit Policy as each bank is adopting its own policy.
The purpose of the policy is that banks should deliver to depositors what they had promised at the time of taking deposit. It is after all depositors’ money that banks primarily use for lending and further their banking activity. Therefore, in the real sense it is the depositor who is the true and real owner of the bank rather than the shareholder.