#
# # #

KYC Norms

What is KYC ? Know Your Customer – KYC enables banks to know / understand their customers and their financial dealings to be able to serve them better and prudently manage the risks of Money Laundering and Financing of Terrorism.
Why KYC ?

To establish the identity of the client. This means identifying the customer and verifying his/her identity by using reliable, independent source/ documents/ data or information.

For individuals, Bank will obtain identification data to verify the identity of the customer, his/her address/location and also his/her recent photograph. This will be done for the joint holders and mandate holders, as well.

For non-individuals, Bank will obtain identification data to

  • verify the legal status of the legal person/entity
  • verify identity of the authorized signatories and
  • verify identity of the Beneficial owners/controllers of the account
  • To ensure that sufficient information is obtained on the nature of employment/business that the customer does/expects to undertake and the purpose of the account

Is KYC mandatory? Yes.

Regulatory:

 

Yes. It is a regulatory and a legal requirement

The Prevention of Money Laundering Act,2002 (PMLA) which came into force from 1st July,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.
Legal: The Prevention of Money Laundering Act,2002 (PMLA) which came into force from 1st July,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
When does KYC apply ? The compliance of KYC norms will be carried out at the following stages:
  • Opening of a new account.
  • Opening of a subsequent account where documents as per current KYC standards have not been submitted while opening the initial account.
  • Opening of a Locker Account where these documents are not available with the bank for all the Locker facility holders.
  • When the bank feels it necessary to obtain additional information from existing customers based on the conduct of the account.
  • When there are changes of signatories, mandate holders, beneficial owners etc.
  • At the time of review of Account.

The compliance of KYC norms will also be carried out in respect of non-account holders approaching the bank for high value one-off transactions

Who is the contact person in the Bank for KYC purposes?

The contact person in the Bank will be the Branch Manager or the Officer who opens the account and who is in touch with the customer for the transactions in the account
What will happen if the required KYC
information /documents are not provided to the Bank?
The Bank will be entitled to refuse the opening of the account in the case of a prospective customer  or  discontinue the relationship  in  the  case  of  an  existing customer, if the required KYC information/documents are not provided
How can a person having no valid
documents open account
Bank will not deny banking services to the customers especially belonging to persons in the low income group, who can not produce valid documents to establish their identity/ address. As per RBI norms, Small Accounts of such customers can be opened with certain stipulations w.r.t. maintaining and operations in the account. In such accounts, at any point of time, the balance in all his/her account should not exceed Rs.50000/- (Rupees Fifty Thousand Only) or total credit in the account should not exceed Rs.100000/- (Rupees One Lac Only) in a year, otherwise no further transaction will be permitted until the full KYC compliance  is done.
Why other information sought by the Bank

Information related to customers’ occupation, professions, net worth, annual income, turn over, source of income, educational qualification etc. is required while opening the account. Such mandatory information is necessary for maintaining risk profile of a customer and needs to be obtained periodically. As per Prevention of Money Laundering Act, 2002, Banks are under obligation to monitor transactions in customer accounts. This information is only helpful in prevention of money laundering/terroist financing, no commercial usage of this information is intended.

The customer profile shall be updated, on a periodical basis, as under:

For low risk customers - Once in ten years

For medium risk customers – Once in eight years

For high risk customers – Once in two years

What are the valid documents for ID proof and address proof ?

Accounts of Individual

Proof of Identity   

List of Valid Documents

  • Passport
  • PAN Card
  • Voters Identity Card
  • Driving License
  • Photo Credit Card
  • Identity Card (subject to Bank’s satisfaction)
  • Letter from a recognized public authority or public servant verifying the identity and residence of the customer (subject to the Bank’s satisfaction.)
  • IEC (Importer/Exporter Code) issued to the proprietary concern by the office of DGFT

Proof of Address  

  • Telephone Bill
  • Bank Account Statement
  • Electricity Bill
  • Passport
  • Driving –License
  • Latest Utility Bill
  • Credit Card Statement
  • Employer’s/Public authority’s Letter with address (subject to Bank’s satisfaction)
  • Date of birth certificate in case of minor account opened individually or jointly with other Individual

Who will sign Master for Customer

The master for customer will be signed by the person willing to open an account and in case of Joint Account, all the joint holders will sign. Individual account holders will sign separately and Account opening form will be signed by all the account holders.

Accounts of Companies
Name of the company
Principal place of Business
Correspondence Address
Contact Numbers
Who will sign Master for Customer

  • Certificate of incorporation and Memorandum & Article of Association
  • Resolution of the Board of Directors to open an account and identification of authorized persons to operate the account
  • Power of Attorney granted to transact business on its behalf
  • Copy of PAN numbers
  • Copy of telephone bill.
All the Directors/Power of Attorney holders/Person authorized to operate the Account will sign

Accounts of Partnership Firms
Legal Name
Address
Name and all partners and their addresses
Contact Numbers of the firm and partners
Who will sign Master for Customer

  • Registration Certificate, if registered
  • Partnership Deed
  • Power of Attorney granted to a partner or an employee of the firm to transact business on its behalf
  • Telephone bill of firm/partners

All the Partners except minor partner / Power of Attorney holders / Person authorized to operate the account will sign including sleeping partners.

Date of Birth of the Minor Partner will be given.

Accounts of Trusts and Foundations
Names of trustees,settlers,beneficiaries and signatories


Names and addresses of the founder, the managers/directors and the beneficiaries
Contact Numbers
Who will sign Master for Customer

  • Certificate of registration , if registered
  • Power of Attorney granted to transact business on its behalf
  • Any officially valid document for identification and proof of address
  • Resolution of the managing body of the foundation / association
  • Telephone Bill

All the persons of managing body / Power of Attorney holders / Persons authorized to operate the account will sign.

Furnishing of Photographs

While tendering applications for opening SB/Current accounts in the names of Individuals/Sole Proprietary concerns, two copies of latest passport size photographs (not more than 6 months old) should be furnished.
In case of joint accounts, Accounts of Partnerships, Limited Companies, Clubs, Associations, Societies, Trust, Institutions, etc. the photographs of person(s)/official(s) who are authorised to operate the account and in case of HUF, the photograph of the Karta should be furnished.
In case of Term Deposits, one copy of photograph shall be furnished provided the depositor does not have a Savings or Current account with the branch.

The above provisions cover all categories of depositors including non-residents

Introduction of accounts to the Bank

Who can introduce an account

It is essential that the introducer should know fully well the prospective account holder whom he/she is introducing for a sufficiently long time. The introducer should be in a position to identify or be able to give more particulars about the

account holder from his personal knowledge, when there arises any occasion at a later date.

In respect of accounts introduced by employees of other branches or where the introducer was not present while introducing the customer at the time of opening the account, no cheque/draft shall be collected till a confirmation of being introduced the account is received.

Introduction from an existing customer, who has been subjected to full KYC procedures and is having satisfactory account with the Bank for not less than six months or from any respectable person in the locality known to the Bank.

Introduction from existing customer of the Bank is not mandatory when document of identity and address are provided.

Submission of PAN

As per  Income Tax Requirements, it is mandatory for the customers to submit copy of  the PAN (Permanent Account Number) or GIR (General Index Register) Number for the opening of all type of accounts and in case the person is not an Income Tax assessee, a declaration in Form No.60 or 61, as the case may be, should be given to the Bank in respect of all account holders (for every joint account holder / Power of  Attorney / Authorised Signatories / All partners including Sleeping Partners etc.)

Rejection of applications for opening accounts Where the Bank is unable to apply appropriate customer due diligence measures i.e. unable to verify the identity and/or obtain documents required as per the risk categorisation due to non-cooperation of the customer or the data/information furnished to the bank is not reliable, it may take a decision not to open the account
KYC norms for Remittances within India

Issue and payment of travelers cheques, demand drafts, pay order, mail transfers, telegraphic transfers, electronic funds transfers and other remittances of Rs.50,000 and above could be made only by debit/credit to customers' accounts or against cheques and not against cash.

Further, the applicants (whether customers or not) for the above transactions for amount of Rs.50,000 and above should furnish copy of  PAN (Permanent Account Number allotted by Income Tax Authorities)  along with application / pay in slip.

Closure of accounts due to non -cooperation by the customer or non reliability of documents/information furnished If the Bank is not able to adhere to the KYC norms in a particular account due to non co-operation by the customer or non-reliability of the data/ information furnished to the Bank, it may close the account, after giving due notice to the customer explaining the reasons for such a decision
Please note that customer should bring in original as well as photocopies of all documents. Branch will return the original documents after verifying the copies with original documents.
Published for the information of customers in their benefit. KYC norms as mentioned above are subject to modification/change from time to time by the regulators. Bank reserves the right to implement them without any prior information to its customers.
For Hot Listing (Blocking)
ATM/Rupay Cards
1800-103-2278
044-47415691/2/3/4/5
For Balance Enquiry
(By Missed Call) 7039035156 (Toll Free)
All India Toll Free 1800-419-8300