Who is a customer of the Bank? For the purpose of KYC Policy, a “Customer" is defined as:
The Bank before establishing any banking relationship will carry out due diligence as required under "Know Your Customer" (KYC) guidelines issued by the Reserve Bank of India (RBI) and or such other norms or procedures adopted by the Bank.
What is Due Diligence? The Due Diligence process that the Bank follows, includes obtaining your recent photographs, verifying your identity, verifying your address, and other information on your occupation or business and source of funds. As part of the due diligence process the Bank may also require an introduction from a person acceptable to the Bank if they so deem necessary..
Proof of identity
As mentioned above for individuals for each of the joint individuals.
Copies of Passport and Residence Visa, a valid document indicating foreign residential address and passport size photographs of the applicant. The applicant is to be duly introduced by Banker/ Notary Public/ Indian Embassy/ Local customer who has been subjected to full KYC Procedure.
Prescribed Proprietary Declaration Letterand any two of the following:Shop and Establishment
Prescribed Joint Hindu Family Letter signed by all the major Co-parceners. Declaration form from the Karta.
For Identity of the organization, its activities, address and authority delegated for opening and operation of its account(s).
For identity of the Managing Committee Members who are authorized to operate the accounts of the organization and their addresses.
Notification/Resolution/Letter of Permission for opening and delegation of authority to operate the account
"Officially valid documents" means i) The Passport ii) The Driving Licence iii) The permanent account number (PAN) card iv) The voter identity card issued by Election Commission of India v) Job card issued by NREGA duly signed by an officer of the State Government vi)The letter issued by the Unique Identification Authority of India containing details of name, address and vii) Aadhar number or any document as notified by the Central Government in consultation with the regulator. It is important that the proof of the address also follows from the above documents only.
Where a customer is permitted to act on behalf of another person/entity in conformity with the established law and practice of banking as there could be occasions when an account is operated by a mandate holder or where an account is opened by an intermediary in fiduciary capacity, in such cases KYC checks shall be performed on the beneficial owners or mandate holder also, as the case may be.
In case of opening of account in the name of minor, KYC procedure on guardian shall be performed. Minor, on becoming major, shall be allowed to operate the account on completing KYC procedure.
Relaxation of KYC in Small Savings Bank Deposit Accounts:
Those persons who do not have any of the officially valid documents can open small accounts with banks. A small account can be opened on the basis of a self attested photograph and putting her/his signature or thumb print in the presence of an official of the bank. Such accounts have limitations regarding the aggregate credits (not more than Rs.1.00 lac in a year), aggregate withdrawals (not more than Rs.10000/- in a month) and balance in the account (not more than Rs.50000/- at any point in time). These small accounts would be valid normally for a period of 12 months. Thereafter, such accounts would be allowed to continue for a further period of 12 months. If the account holder provides a document showing that he/she has applied for any of the officially valid document, within twelve months of opening the small account.
Are KYC requirements applicable to existing customers also ? Yes. All existing customers need to update KYC procedure periodically.
Are KYC requirements new ?
No, KYC requirements have always been in place and Banksbeen taking KYC documents in accordance with the guidelines issued by RBI from time to time. RBI has revisited the KYC guidelines in the context of recommendations made by the Financial Action Task Force (FATF) on Anti Money Laundering standards and on Combating Financing of Terrorism and enhanced the KYC standards in line with international benchmarks
How could this affect you as a customer ? This procedure helps in ensuring genuine persons open account and avoid unscrupulous persons getting access to the Bank by impersonating you as a customer. This will also avoid using banking channel for illegal activities.
Is KYC mandatory ? Yes. It is a regulatory and legal requirement. Regulatory: In terms of the guidelines issued by the Reserve Bank of India (RBI) on November 29, 2004 on Know Your Customer [KYC] Standards – Anti Money Laundering [AML] Measures, all banks are required to put in place a comprehensive policy framework covering KYC Standards and AML Measures.Legal: The Prevention of Money Laundering Act, 2002 (PMLA) which came into force from July 1, 2005 (after “rules” under the Act were formulated and published in the Official Gazette) also requires Banks, Financial Institutions and Intermediaries to ensure that they follow certain minimum standards of KYC and AML as laid down in the Act and the “rules” framed there under
What will happen if you do not provide the required KYC information / documents to the Bank ? The Bank will be entitled to refuse to open the account (if you are a prospective customer) or discontinue its relationship with you citing non-providing of KYC information / documents (if you are an existing customer). If you however, require reasonable time to furnish certain non-critical documents you can approach the branch / sales staff.
Help us to Help You Please help us to fulfill legal and regulatory requirements by providing documents to prove your identity. If the decision to establish relationship with a prospective customer requires clearance at a higher level, reasons for any delay will be informed to the customer and the final decision of the Bank will be conveyed to the customer at the earliest. KYC process is applicable to all products of the Bank.