Know Your Customer (KYC)
Guidelines governing opening of Branch Account & transactions
I. New customers – Proper Introduction of accounts/obtaining photographs etc
- Introduction by our existing account holder who should himself have maintained an account with the branch, at least for the past twelve months prior to the date of introducing the new account.
- If an existing account holder intends to open another account with a different branch, fresh account opening form/letters duly completed by the account holder, should be attested/introduced by the branch, only if the present account of the person/firm has been operated satisfactorily for period of one year during the immediately preceding year.
- Pass port size photograph of the depositors is required in case of all illiterate depositor/s, Current Accounts, SB, JND/SJJND accounts [where cheque book facility has been extended] and Term Deposits of Rs. 10,000/- and above
- In case of joint accounts, partnership accounts, accounts of societies, clubs, associations, public/private limited companies, HUF, trusts, etc., and those of minors photographs of the authorized signatories is required. Photographs of the student account holders should be attested by the school authorities on the reverse
- In case of change in the authorized signatories, photographs of the new signatories duly countersigned by the competent authorities of the concerned institutions/organizations is needed
- Where the accounts are operated by letters of authority, photographs of the authority holders duly attested by the depositors is required
II. Documents that are normally relied upon as proof of customers’ address.
- Ration Card
- Driving License
- Telephone/Electricity Bills
- Rent receipt
- Municipal/Assessment Order
- Income Tax assessment Order
- Identify Card containing the address of the account holder, issued by the employer
- Any other documents satisfactory to the Manager
In case of need, Branch staff may visit the account holder the given address to satisfy about the genuineness of the address.
Guidelines for proprietary concerns accounts
Apart from following the extant guidelines on customer identification procedure as applicable to the proprietor, following documents are made available before opening of accounts in the name of a proprietary concern
- Proof of the name, address and activity of the concern, like registration certificate (in the case of a registered concern), certificate/licence issued by the Municipal authorities under Shop & Establishment Act, sales and income tax returns, CST/VAT/Service Tax/Professional Tax authorities, Licence issued by the Registering authority like Certificate of practice issued by institute of Chartered Accounts of India, Indian Medical Council, Food and Drug Control Authorities, etc.
- Any two of the cited documents would suffice. These documents should be in the name of the proprietary concern.
III. Adherence to Foreign Contribution Regulation Act [FCRA], 1976
A certificate to the effect that the association is registered with the Government of India need to submit by the concerned associations at the time of opening of the account or collection of cheques.
IV. In case of joint accounts
- The maximum number of persons for a joint account is restricted to FOUR
- Specimen signatures of each of the joint depositors on separate specimen signature cards in F-20.
- All prospective joint account holders are to be properly introduced.
- Transfer of accounts from one branch to another branch cannot be done at the request of anyone of the joint account holders.
V. Ceiling for and monitoring of large value cash transactions
Issue and payment of demand drafts for Rs. 50,000 and above
- DDs for Rs. 50,000/- and above should be issued only by debit to the customers account or against cheques or other instruments tendered by the purchaser and not against cash payment. Further PAN number of the purchaser in such cases is mandatory.
- Requests for issue of multiple drafts favouring the same beneficiary with total amount of such drafts exceeding Rs.50,000/- are received with latent intention of violating fiscal laws and evasion of tax, the guidelines should be made applicable in letter and spirit.
- Payment of DDs/Pos for Rs.50,000/- and above, should be made through banking channels and not in cash.
- Monitoring large value transactions
VI. Prevention of Terrorism Ordinance, 2001 – Implementation thereof
VII. Compliance to AML guidelines.