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SOUND MIND LEADS TO SAFEBANKING
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KNOW YOUR CUSTOMERKNOW YOUR CUSTOMER
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What is KYC?
KYC (Know Your Customer) is a framework
for banks which enables them to know /
understand the customers and their financialdealings to be able to serve them better.
All banks have been advised b !he "eserve #ankof $ndia ("#$) to follow certain %KYC &uidelines'
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Objectives ! KYC
!o enable the #ank to have ositiveidentification of its relationshi
$s in the interest of customers to safeguard their
hard earned mone
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Whe" #es KYC a$$%&?
KYC will be carried out at the following stages *ening a new account $n resect of accounts where documents as er current KYC
standards have not been submitted while oening the initial
account
*ening a +ocker ,acilit where these documents are notavailable with the #ank for all the +ocker facilit holders
-hen the #ank feels it necessar to obtain additional
information from eisting customers based on conduct of
account
-hen there are changes to signatories mandate holdersbeneficial owners etc.
,or non0account holders aroaching the #ank for high
value one0off transactions like 1rafts "emittances etc.
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'(! "ee#e# !() c*st)e(s
(e+a(#i"+ KYC
"#$ mandates three roofs to be collected from customers
2hotograh
2roof of identit
2roof of address
!hese are to be submitted b the customer both at the timeof oening of account as well as at the time of change of
address.
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3mall deosit accounts are those accounts where #alance does not eceed "s. 45555/0 and
Annual turnover does not eceed "s. 655555/0
3imlified KYC norms rescribed for 3mall 1eositaccounts
Customers can oen this te of accounts b
getting introduced b eisting full KYC comliantaccount as also attestation of address / hotograh
b him.
S)a%% De$sit Acc*"ts
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Contact oint for customers in the #ank will be the
"elationshi 7anager / official who oens the account and
is the contact erson during transactions
C"tact 'i"t i" Ba",s !(
KYC
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MONEY LAUNDERINGMONEY LAUNDERING
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What is M"e& La*"#e(i"+?
7one laundering refers to the conversion of mone
illegall obtained to make it aear as if it originated from
a legitimate source.
$t is being emloed b launderers worldwide to conceal
roceeds of criminal activit associated with it such as
drugs / arms trafficking terrorism and etortion.
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E!!ect " C*st)e(s
,or revention of oening of accounts in false identities#anks have to ask for roof of customer's identit and
address during oening of new accounts
#eing asked for these documents does not iml that the
customers are susected of mone laundering
$t is a necessit to identif all rosective account holders
or customers as anbod including a criminal could
falsel use another customer's identit if the resective
documents are not obtained.
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What $(! ! i#e"tit& -i%% &*
"ee#?
#est identification documents are those issued b a&overnment authorit having a hotograh address andsignature
*ne document can be used to establish both identit andaddress else two or more documents will suffice
S)e $(!s ! I#e"tit& .A##(ess !( I"#ivi#*a%s/
2assort
8lection $1 card
1riving +icense
9oter $1 card
'(!s ! I#e"tit& . A##(ess !(c)$a"ies0 T(*sts0 Fi()s/
2artnershi 1eed
!rust 1eed
7emorandum : Articles of
Association
Certificate of $ncororation etc.
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What $(! ! i#e"tit& -i%% &*
"ee#? 1C"t#23
1ocuments used for$dentit onl forindividuals
1ocuments used forAddress onl forindividuals
2an card
$1 card of reutedemloers
3alar 3li
8lectricit #ill
!elehone #ill
"ation Card
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7andates banks to reort certain transactions to thenominating agenc under instructions issued b "#$ inconsultation with the $ndian &overnment and $ndian#ank's Association
$t secifies that 1emand drafts mail transfers and travelers che;ues for "s.
45555/0 and above can be issued onl b debit to customer'saccount or che;ue etc and not against cash ament
1emand drafts mail transfers and travelers che;ues for "s.
45555/0 and above can be aid b banks onl b credit tocustomer's account or through other banking channels and notcash
'(eve"ti" ! M"e&
La*"#e(i"+ Act 1'MLA3 4554
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6e%$ *s t 6e%$ Y*
# being atient when a #ank staff asks ou torovide documents to rove our identit /
address
# maintaining confidentialit of our accountdetails and identit documents
F( a"& !*(the( 7*e(ies0 $%ease c"tact
8955884488 1t%%!(ee !() BSNL:MTNL3 ( 595;4>>>52
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