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Who is a customer of the Bank?

For the purpose of KYC policy, a ‘Customer’ is defined as:

  • A person or entity that maintains an account and/or has a business relationship with the Bank;
  • One on whose behalf the account is maintained (i.e. the beneficial owner);
  • Beneficiaries of transactions conducted by professional intermediaries, such as Stock Brokers, Chartered Accountants, Solicitors etc. as permitted under the law; and
  • Any person or entity connected with a financial transaction which can pose significant reputational or other risks to the bank, say, a wire transfer or issue of a high value demand draft as a single transaction.

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 including beneficial owner. The nature and extent of due diligence will depend on the risk perceived by the Bank.

What is Re-KYC?

Reserve Bank of India has prescribed that customer identification data, including photograph shall be updated and kept on record duly verified at least once in ten years in case of Low Risk Customer, once in Eight years for Medium Risk customer and once in two years in case of High Risk Customers. Such verification shall be done irrespective of whether the account has been transferred from one branch to another branch.

List of documents to be obtained from different types of customers
Type of customers Documents to be obtained
Individuals
For Identification as well as for address (provided it bears the present address mentioned in AOF).
  • Aadhaar Number, where he/she is desirous of receiving any benefit or subsidy under any scheme with declaration (format available with Branches). E-KYC shall mandatorily be done
    Or
    Individuals who are not beneficiaries of the aforesaid welfare scheme or who do not give declaration as mentioned above, branches shall accept physical Aadhaar card/E-Aadhaar /Masked Aadhaar/Offline Electronic Aadhaar xml (if offered voluntarily by the Customer) or in such form as are issued by the Unique Identification Authority of India.
    the passport, the driving license, the Voter’s Identity Card issued by Election Commission of India, job card issued by NREGA duly signed by an officer of the State Government and the letter issued by the National Population Register containing details of name and address.
  • And

  • Permanent Account Number (PAN) or Form No. 60,
  • and

  • One recent photograph, and

  • Such other documents pertaining to the nature of business or financial status specified by the Bank from time to time.
Provided where Customer submits his/her Aadhaar number, Branches shall ensure that such customer to redact or blackout his/her Aadhaar number through appropriate means where the authentication of Aadhaar number is not required.
For Address
(Only Full Address shall be accepted. Post Box / Bag Numbers shall not be accepted)
It is implied that proof of address also follows from the above documents only.

If OVD furnished by the customer does not contain updated address, then Deemed OVDs for limited purpose of address:-

i.   Utility bill which is not more than two months old of any service provider (electricity, telephone, postpaid mobile phone, piped gas    ,water bill);
ii.   Property or Municipal Tax Receipt;
iii.   Pension or Family pension payment orders (PPOs) issued to retired employees by Government Departments or Public sector undertakings, if they contain the address;
iv.   Letter of allotment of accommodation from employer issued by State or Central Government departments, statutory or regulatory bodies, public sector undertakings, scheduled commercial banks, financial institutions and listed companies. Similarly, leave and license agreements with such employers allotting official accommodation; and

Provided that the customer shall submit updated OVD with current address within a period of three months of submitting the above documents
Joint Individuals

As mentioned above for individuals for each of the joint individuals.

Non Resident Indians – 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 have been subjected to full KYC Procedure. If OVD submitted by a Foreign national does not contain the details of address, in such case the documents issued by the Government department of foreign jurisdictions and letter issued by the Foreign Embassy or Mission in India shall be accepted as proof of address.
  • Recent Passport size photograph
Proprietary concern

For Identity of the concern, its activities, address.

For identity of the proprietor and his addresses (For creation of Proprietor’s Customer ID which is to be attached to the Proprietary Concern’s Account)
Apart from Customer Identification Procedure as applicable to the proprietor any two of the following documents in the name of the proprietary concern would suffice.

i.   Registration Certificate (in the case of a registered concern)
ii.   Certificate / License issued by the Municipal Authorities under Shop & Establishment Act,
iii.   Sales Tax and Income Tax Returns
iv.   CST/VAT/GST Certificate (provisional / final)
v.   Certificate/ Registration document issued by Sale Tax/ Service Tax/ Professional Tax authorities/GST.
vi.   IEC (Importer Exporter Code) issued to the proprietary concern by the office of DGFT/ License/Certificate of practice issued in the name of the proprietary concern by any professional body incorporated under a statute.
vii.   License (Certificate of Practice) issued in the name of proprietary concern by any professional body incorporated under a statute -

  • Institute of Chartered Accountants of India,
  • Institute of Cost Accountants of India,
  • Institute of Company Secretaries of India,
  • Indian Medical Council,
  • Food and Drug Control Authorities, etc.
  • or any other professional body incorporated under a statue

viii.   Complete Income Tax Return (not just the acknowledgement) in the name of the sole proprietor where the firm’s income is reflected, duly authenticated / acknowledged by the Income Tax Authorities.
ix.   Utility bills such as electricity, water, and landline telephone bills not older than two months. In cases where the branches are satisfied that it is not possible to furnish two such documents, they would have the discretion to accept only one of those documents as activity proof. In such cases, the branches, however, would have to undertake contact point verification, collect such information as would be required to establish the existence of such firm, confirm, clarify and satisfy itself that the business activity has been verified from the address of the proprietary concern.
x.   Identity and Address proof of individual as mentioned above in respect of the person authorized/holding an attorney to transact on its behalf.
It is implied that proof of address also follows from the above documents only.
xi.   Recent passport size Photographs of the proprietor
Hindu Undivided family
For Identity of the HUF, its activities, address and authority for opening and operation of its account(s) For identity of the Karta and major co-parceners of the HUF who are authorized to operate the account(s) and their addresses.
Prescribed Joint Hindu Family Letter signed by all the major Co-parceners. Declaration form from the Karta.
  (i)   Identity & Address proof of individual as mentioned above of the Karta and each of the major co-parceners as applicable to individuals.
  (ii)   Recent Passport size Photographs of Karta & all major co-parceners.
Partnership Firms
For Identity of the Firm, its activities, address and authority delegated for opening and operation of its account(s).

For identity of the each partners (For creation of Partner’s Customer ID which is to be attached to the Partnership Firm’s Account)
For Identity Proof of the Partnership Firm

  (i)   Registration Certificate; and
  (ii)   Partnership Deed; and
  (iii)   Permanent Account Number (PAN) of the Partnership Firm; and

For Identification of the Firm’s Partners/Power of Attorney Holder and their Address

  (i)   One copy of OVD containing details of Identity and address, and
  (ii)   Permanent Account Number (PAN) or Form No. 60 of all the partners/person holding an attorney to transact on its behalf
  (iii)   Recent passport size Photographs of all the partners/person holding an attorney to transact on the its behalf.
Companies / Corporations

For identity of the Company / Corporation, its activities, address and authority delegated for opening and operation of its account(s).

For identity of the directors/ officials of the company/corporation who are authorized to operate the account and their addresses.
Companies / Corporations

  (i) Certificate of Incorporation; and
  (ii)   Memorandum and Articles of Association; and
  (iii)   Permanent Account Number (PAN) of the Company/Corporations; and
  (iv)   Current list of directors with their bio-data & a Resolution from the Board of Directors and Power of Attorney granted to its managers, officers or employees, as the case may be, to transact on its behalf; and
  (v)   ) One copy of an OVD containing details of identity and address, One recent Photograph and Permanent Account Number (PAN) or Form No. 60 in respect of managers, officers or employees, as the case may be, holding an attorney to transact on its behalf.
Trusts

For Identity of the Trust, its activities, address and authority delegated for opening and operation of its account(s).

For identity of the trustees who are authorized to operate the accounts of the Trust and their addresses.
Trusts

  (i)   Registration Certificate; and
  (ii)   Trust Deed; and
  (iii)   Permanent Account Number or Form No. 60 of the Trust; and
  (iv)   One copy of and OVD containing details of identity and address, one recent photograph and Permanent Account Number or Form No. 60 of the person holding an attorney to transact on its behalf.
Local Bodies/Government Departments/Societies/Universities etc.,
For Identity of the applicant, its activities, address and authority delegated for opening and operation of its account(s).
Local Bodies like village Panchayats /Government Departments / Societies / Universities etc.,

  (i)   Notification/Resolution/Letter of Permission for opening and delegation of authority to operate the account.

  (ii)   Documents showing name of the person authorized to act on behalf of the entity.

  (iii)   PAN/OVD for proof of identity and address in respect of the person holding a power of attorney to transact on its behalf and

  (iv)   Recent Passport size photograph of all such authorized officials
Unincorporated association or body of individuals including societies

For Identity of the applicant, its activities, address and authority delegated for opening and operation of its account(s).
Information as may be required by the bank to collectively establish the legal existence of such an association or body of individuals

  (i)   Resolution of the managing body of such association or body of individuals; and
  (ii)   Permanent Account Number (PAN) or Form No. 60 of the Unincorporated Association or a Body of Individuals; and
  (iii)   Power of Attorney granted to person to transact on its behalf; and
  (iv)   One copy of identity and address, one recent photograph and Permanent Account Numbers (PAN) or Form No. 60 of the person holding an attorney to transact on its behalf.

Explanation: Unregistered trusts/partnership firms shall be included under the term ‘unincorporated association’ or ‘a body of individual includes Societies.

What is Officially Valid Document (OVD)?

““Officially Valid Document” (OVD) means the passport, the driving license, proof of possession of Aadhaar number, the Voter’s Identity Card issued by Election Commission of India, job card issued by NREGA duly signed by an officer of the State Government and the letter issued by the National Population Register containing details of name and address or any document as notified by the Central Government in consultation with the regulator.
Provided that where the Customer submits his/her proof of possession of Aadhaar number as officially valid document, he/she may submit it in such form as are issued by the Unique Identification Authority of India.

Explanation:- For the purpose of this clause, a document shall be deemed to be an OVD even if there is a change in the name subsequent to its issuance provided it is supported by a marriage certificate issued by the State Government or Gazette notification, indicating such a change of name.

In case of Officially Valid Document (OVD) furnished by the customer does not contain updated address, the following documents shall be deemed to be officially valid documents for the limited purpose of proof of address

    i. Utility bill which is not more than two months old of any service provider (electricity, telephone, post-paid mobile phone, piped gas, water bill);

     ii. Property or Municipal tax receipt;

    iii. Pension or family pension payment orders (PPOs) issued to retired employees by Government Departments or Public Sector Undertaking, if they contain the address;

   iv. Letter of allotment of accommodation from employer issued by State Government or Central Government Departments, statutory or regulatory bodies, public sector undertakings, scheduled commercial banks, financial institutions and listed companies and leave and license agreements with such employers allotting official accommodation;

Provided that the customer shall submit updated Officially Valid Document with current address within a period of three months of submitting the above documents

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:

If an individual customer does not possess PAN and Officially Valid Documents (OVD) and desires to open a bank account, Bank shall open ‘Small Accounts’ subject to following:

   a. Customer may be allowed to open such an account, on production of a selfattested photograph and fixation of signature or thumb print, as the case may be, on the account opening form.

   b. The designated officer of the bank certifies under his signature that the person opening the account has affixed his signature or thumb impression in his presence.

  c. These accounts opened with relaxation provisions shall remain operational for a period of twelve months and thereafter for a further period of twelve months if the holder of such an account provides evidence before the bank of having applied for any of the officially valid documents within first twelve months of the opening of the said account.

   d. The entire relaxation provisions shall be reviewed after twenty four months.

  e. Foreign remittance shall not be allowed to be credited into the account unless the identity of customer is fully established through the production of PAN/Form 60 as the case may be and an OVD.

   f. If at any point of time, the balance in all his/her accounts with the bank (taken together) exceeds Rs.50,000/-or the aggregate of all credits in a financial year exceeds Rs.1,00,000/- in a year or the aggregate of all withdrawals and transfers in a month exceeds Rs.10,000/-, no further transactions will be permitted until full KYC procedure is completed. KYC must be submitted otherwise operations in the account will be stopped on crossing the limit.

 

Re - KYC

FAQS


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