What is BPC

BPC stands for Best Practices Code. It is connected to the procedural rules for doing the transactional relation with banks. The main aim of BPC is that these rules should be kept in mind and should be kept well documented as compared to the national and international practices and improvement is made in light of gained experience. Preparation of BPC includes investigation of all procedures, activities, products, processes and systems.

It needs to be connected with the risk management strategy of financial unit or banking system. It should be taken as part of strategy to control all operational risk losses that are possible. Reserve Bank of India issued guidelines on BPC on March 15, 2004 based upon the recommendations of Mitra Committee. The guidelines help to bring a level of uniformity in coverage and content of BPC. There should be comprehensiveness in BPC documents and the content should be homogeneous in the nature. BPC guidelines are essential to take care of as it helps in the proper banking procedure. The preparation of BPC needs examining of all the products and activities of banking. It should be comprehensive and this document should be homogeneous in kind. RBI also issued guidelines for the areas that are fraud prone. it helps to generate the uniformity in lots of contexts. The cash is the most important thing that is covered under BPC. All the issues like treasury operations, remittances, bill portfolio, cash receipts and LC/ or guarantees. It should be periodically revised and gain instructions from RBI on the timely basis and also let it work in the row with the help of the external or internal auditors. The precautions should be taken by bank to prevent frauds and the same should be also given in public to avoid the same by means of communication.