Fair Practices Code

April 2023
 Fair Practices Code of ICICI Bank

The Fair Practices Code of ICICI Bank seeks to provide transparency and clarity to the Bank’s
borrowers regarding their transactions with the Bank. These guidelines relate only to the
domestic banking business of ICICI Bank. The guidelines for international business will be
separately framed in line with lenders’ liability laws and regulations applicable in countries
where ICICI Bank has or proposes to establish a presence.

1. Loan Applications and Processing

The loan application forms will include information about processing fees and other charges,
fees refundable in the case of non-acceptance of application, pre-payment options and
charges, if any, penalty for delayed repayments, if any, conversion charges for switching
loans from fixed to floating rates or vice versa, existence of any interest reset clause and
any other matter that affects the interest of the borrower. Further, such information will also
be available to the customer through product information brochures and all communication
containing product related features, in addition to being an integral part of the facility terms.
The Bank will also inform the all-in-cost to the customers.

A system will be devised to provide acknowledgment for receipt of loan application forms.
In case of loans to non-individual borrowers where the credit proposals have originated
through detailed interaction with the borrowers, an application/acknowledgment process
may not be followed. However, request from the borrower will be obtained for availing the
facility.

The Bank will ordinarily verify the loan applications/requests received, within <2> months
from the date of receipt and intimate borrowers if additional details/documents are required.
The Bank will convey in writing the decision (approval/rejection) of loan application/request
within <2> months from the date of submission of all information by the customer, required
by the Bank to process the loan application/request.

2. Loan Appraisal and Terms/Conditions

The Bank will ensure proper assessment of credit requirement and creditworthiness of
borrowers. Stipulation of margin and security will be based on due diligence and
creditworthiness of borrowers, in line with Bank’s existing Credit Policy. Assessment
methodologies have been detailed in the Bank’s policy/product notes. Assessment will be
based on all credit related and other information as may be called for/collected by the Bank.

The Bank will convey to the borrower the credit limit and details of facilities along with terms
and conditions and keep the borrower’s acceptance on record. Terms and conditions and
other caveats governing credit facilities given by the Bank will remain in writing between
the Bank and the borrower and communicated to the borrower under authorised
signatories. A copy of the facility terms along with related documents will be provided to the
borrower.
As far as possible, the facility terms will stipulate terms and conditions relating to the credit
facilities solely at the Bank’s discretion, include approval or disallowance of facilities like
drawings beyond sanctioned limits, honouring cheques issued for purposes other than those
specifically agreed to in the credit sanction and disallowance of drawing on a borrower
Account, on its classification as nonperforming asset or in the event of default or on account
of non-compliance with the terms of sanction. The Bank will not have an obligation to meet
further requirements of the borrowers on account of growth in business etc. without proper
review of credit limits.

In case of lending under consortium arrangement where the Bank is a participant, the Bank
will try to complete appraisal of proposals in a time-bound manner to the extent possible
and communicate to the customer the decision on financing or rejection of proposal within
reasonable time.

3. Disbursements of Loans including Changes in Terms and Conditions

The Bank will ensure timely disbursement of loans sanctioned, conforming with terms and
conditions governing such sanction.

The Bank will give intimation of any change in terms and conditions including interest rates,
service charges etc. and ensure that changes in interest rates and charges are effected only
prospectively (unless otherwise required by regulation/law).

4. Post Disbursement Supervision

The post disbursement supervision by lenders, particularly regarding loans up to INR <0.2>
million will be constructive, taking care of ‘lender-related’ genuine difficulty if any, of the
borrower. Inappropriate occasions such as bereavement in the family or events of similar
nature will require being avoided for calls or visits.

Before taking decision to recall/accelerate payment or performance under facility terms or

The Bank will release all securities on receiving payment of loan or realisation of loan,
subject to any legitimate right or lien for any other claim that lenders may have against
borrowers. If such right of set off is to be exercised, borrowers will be given notice about the
same and the documents under which lenders are entitled to retain the securities.

5. General

In case of request for transfer of borrower Account, either from the borrower or from a bank
which proposes to take over the Account, the consent or otherwise i.e. objection of the Bank,
if any, will be conveyed within <21> days from the date of receipt of request.
The Bank reserves the right to enforce security for recovery of dues in the form and manner
and on the terms and conditions stipulated in the facility terms, in case of default in payment
or any other default. For recovery of loans, the Bank will not resort to undue harassment like
persistently bothering the borrowers at odd hours or use of force.

The Bank will not intervene in the borrowers’ affairs except as provided in the terms and
conditions of the facility terms, unless the Bank has noticed new information, not disclosed
by the borrower.

The Bank will not discriminate on grounds of sex, caste and religion in the matter of lending.

An appropriate grievance redressal mechanism will be established for disputes arising out
of the decisions of the Bank’s functionaries.