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After nationalization of banks some borrowers have digested a slogan 'money borrowed from bank need not be paid immediately. For this reason the borrowers have not shown much concern about their responsibility to repay the debt. Some times managers faced humiliation in collecting the dues. Therefore the need to engage outsource force arose. Supreme Court in case of ICICI BANK VS. SHANTA DEVI SHARMA & ORS. :2008 (2) BANK CLR 745 (S.C.) levied 25,000/-towards costs for harasing borrower who committed suicide. Eventhough Banker's Fair Practice code was evolve it remained only as paper tiger. Hence on advise of RBI & IBA some banks have put in place BANKING CODES STANDARDS BOARD OF INDIA ( B.C.S.B.I.). The Board has framed CODE OF BANK’S COMMITMENT TO CUSTMERS (C.B.C.C) which lays down certain fair conducts towards customers. This code is monitored implemented and re viwed regularly by B.C.S.B.I. to avoid hardship to the customers as well as banks. Borrowers owe responsibility to pay their debts even without reminders. As rightly pointed out by the author the cause for default is born in the improper credit policy without understanding the borrowers actual need and without explaining the dire consequences the borrower has to face when he neglects to pay the dues. Many borrowers commit default without understanding the RBI's prudential norms pertaining to asset classification. Sometimes borrowers face set back in the business because of defaults committed by their debtors. Hence in each big account the banks have to advise the borrowers to maintain 'Escro Accoount' to see that loan account does not slip to NPA category.
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