SWAGAT 2010-11 BANKING AWARENESS TRAINING PROGRAMME Training Programme : Banking Awareness and Prevention of Frauds SESSION PLAN DAY – 1 Introduction and Ice Breaker Overview of Banking Industry: Types of Banks Functions of RBI Axis Bank : An overview Anti Money Laundering & KYC Regulations LUNCH Legal and Regulatory aspects of Banking- Rules of the Game. Types of customers: Individual/s, Sole Proprietor Firms, Partnership Firms, LLPs, Companies, HUF, Trusts, Associations, Societies, Clubs, Section 25 Companies Group Discussion / Banking Quiz. DAY – 2 Current, Savings Bank and Term Deposits, including Recurring Deposits – generic features Accounts of Minors/ Senior Citizens. LUNCH Term Deposits – Application of Income Tax Laws, RBI Rules, IBA guidelines and Advance against TD. Retail Banking Products. DAY – 3 Accounts of Non-Resident Indians and Foreign Nationals, basic forex, electronic payments systems Rules of Nomination Negotiable Instruments Act, Paying and Collecting Banker including Clearing and Collection Mechanism. LUNCH Payment and settlement systems: Payment and Settlement Systems, including EFT, NEFT, ECS, NECS, RTGS, Speed clearing and the latest India Money Line, the 24 Hrs NEFT just going to be launched. Business Banking Products: Current Accounts / CMS / Govt. Business DAY – 4 Protection to customers : Consumer Protection Act, BCSBI / Code of Commitment to Customers / Banking Ombudsman Scheme/ Common Audit irregularities Customer Service and customer compliant redressal methodology. Prevention of Frauds –Modus Operandi, Precautions and Prevention and discussion. LUNCH Demat Accounts and on-line trading accounts eBanking basics: ATM, iConnect, EDCs, e-payments, including the dangers of Phishing, Vishing etc. Cash Department Functions including safety measures against frauds. DAY – 5 Finacle 10.2 User Application Training Exit Test & Feedback Open House & Wrap-up
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SWAGAT 2010-11 BANKING AWARENESS TRAINING PROGRAMME
Training Programme : Banking Awareness and Prevention of Frauds
SESSION PLAN
DAY – 1
Introduction and Ice Breaker
Overview of Banking Industry:
� Types of Banks
� Functions of RBI
� Axis Bank : An overview
Anti Money Laundering & KYC Regulations
LUNCH
Legal and Regulatory aspects of Banking- Rules of the Game.
Types of customers: Individual/s, Sole Proprietor Firms, Partnership Firms, LLPs, Companies, HUF, Trusts, Associations, Societies, Clubs, Section 25
Companies
Group Discussion / Banking Quiz.
DAY – 2
Current, Savings Bank and Term Deposits, including Recurring Deposits –
generic features
Accounts of Minors/ Senior Citizens.
LUNCH
Term Deposits – Application of Income Tax Laws, RBI Rules, IBA
guidelines and Advance against TD.
Retail Banking Products.
DAY – 3
Accounts of Non-Resident Indians and Foreign Nationals, basic forex,
electronic payments systems
Rules of Nomination
Negotiable Instruments Act, Paying and Collecting Banker including Clearing
and Collection Mechanism.
LUNCH
Payment and settlement systems: Payment and Settlement Systems, including EFT, NEFT, ECS, NECS, RTGS, Speed clearing and the latest
India Money Line, the 24 Hrs NEFT just going to be launched.
Business Banking Products: Current Accounts / CMS / Govt. Business
DAY – 4
Protection to customers : Consumer Protection Act, BCSBI / Code of
Commitment to Customers / Banking Ombudsman Scheme/ Common Audit
irregularities
Customer Service and customer compliant redressal methodology.
Prevention of Frauds –Modus Operandi, Precautions and Prevention and
discussion.
LUNCH
Demat Accounts and on-line trading accounts
eBanking basics: ATM, iConnect, EDCs, e-payments, including the dangers of Phishing, Vishing etc.
Cash Department Functions including safety measures against frauds.
DAY – 5
Finacle 10.2 User Application Training
Exit Test & Feedback
Open House & Wrap-up
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SWAGAT 2010-11 BANKING AWARENESS TRAINING PROGRAMME
Section 1: Our Bank & the Banking Environment
About Axis Bank…………………………………………………………………………………………………………………………2
Axis Bank Highlights……………………………………………………………………………………………………………………3
The Indian Banking Environment…………….………………………………………………………………………………………5
Section 2: The Basics of Branch Operations
Account Opening Guidelines for Savings Bank and Term Deposit Accounts..……………………………………………..8
Documentation for certain types of Current Accounts…………………………...…………………………………………….22
Account Number details………………………………………………………………...……………………………………………27
Anti Money Laundering (AML) and Know Your Customer (KYC) Guidelines…………………………………………….…28
Deposit Accounts – General Guidelines…………………………………………………………………………………………...34
ACCOUNTS OF MINORS…………………………………………………………………………………………………………………..38 Nomination Facility…………………………………………………………………………………………………………………….40
Section 3: Taxation as Applied to Banking
Income Tax and TDS…………………………………………………………………………………………………………………..42
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BU S I N E S S D I V I S I O N S
Broadly, the business divisions in the bank leaving aside the support functions are as follows:
� Retail Banking, SME & Agri
� Corporate Banking and Institutional Banking
Retail Banking, SME and Agri
Consists of four segments
� Mass and Mass Affluent segment. The group manages the retail liability, retail asset and card products of
the Bank.
� Affluent segment : The group manages all the affluent customer segments such as Wealth Management
and Private Banking, all investment products (Insurance, mutual fund, GOD etc)
� Distribution : The group manages the overall distribution infrastructure for the Bank’s products.
� Advances : The group manages the SME and Agri business of the Bank
Corporate & Institutional Banking
Consists of seven segments
� Infrastructure : Provides end to end services including credit, advisory, loan syndication and other
corporate banking services to infrastructure companies.
� Large Corporate : Provides end to end services for Large corporates including the international banking
business.
� Mid Corporate : Provides end to end services for Mid corporates.
� Capital Markets : Provides advisory services Mergers and Acquisitions, Private Equity syndication and
Equity Capital Markets including broker financiang and other stock market related activities.
� Business Banking : Provides various services to Corporate, Government and Business Banking clients
including current accounts, CMS. They are also responsible for Custodial services and Corporate
Depository services.
� Treasury : Treasury is responsible for the maintenance of the statutory requirements such as the Cash
Reserve Ratio (CRR), Statutory Liquidity Ratio (SLR) and the investment of such funds. It also manages the
assets and liabilities of the bank. Primary Dealing activities can be classified into Money Market
Operations, Foreign Exchange Operations, Currency Futures, International Business, CSGL facilities,
Derivatives etc
� DCM and Equity trading : Primarily deals with DCM origination, bond trading and equity trading
activities of the Bank.
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The Indian Banking Environment Modern banking in India started in the early 18th century1. Today, banks are among the main participants of the financial
system in India.
BA N K I N G S T R U C T U R E
The commercial banking structure in India consists of: Scheduled Commercial Banks & Unscheduled Banks, with the
Reserve Bank of India (RBI) as the apex governing body. RBI has licensing powers & the authority to conduct inspections
on other banks. The chart below depicts the Indian banking industry. The figures in brackets are the number of banks in
each category.
Reserve Bank of India
RBI is the apex governing body in the Indian Banking industry. It formulates guidelines from time to time to ensure a clean
banking environment. It is responsible for overseeing the activities of other banks. It issues licenses to other banks to start
new branches, install ATMs etc. It also conducts regular checks to ensure that all guidelines are being adhered to. It is
responsible for controlling the money supply in the economy.
Non-Scheduled Banks
These are banks, which are not included in the Second Schedule of the Reserve Bank of India Act, 1934, as they do not
satisfy the conditions laid down by that schedule.
Scheduled Banks Scheduled Banks are those, which are included in the Second Schedule of the
Reserve Bank of India Act, 1934. Looking at the snippet on the right, it is apparent
that all big banks are scheduled banks. They can be classified further as Commercial
Banks and Cooperative Banks.
Cooperative Banks
A non commercial bank registered under the State Co-Operative Societies Act or the
Multi State cooperative Societies Act.
Commercial Banks
� Foreign Banks: These are banks that were incorporated outside India but have
branches within the country. For example, ABN Amro, BNP Paribas, etc.
� Public Sector Banks: Banks in which the government has got majority
shareholdings are known as Public Sector Banks. This group consists of SBI and
its Associates, Regional Rural Banks, and other Nationalized Banks.
� State Bank of India and its Associates: This group comprises of the State Bank of India (SBI) and its six Associates.
� Regional Rural Banks: These banks were established as per the provisions of the Regional Rural Banks Act, 1976. A
Regional Rural Bank is a joint ownership between the Central Government, the State Government and a sponsoring
bank in the ratio 50:15:35. RRBs were established to operate exclusively in rural areas to provide credit and other
1 The General Bank of India, established in 1878 was the first Indian Bank. SBI, which was known as The Bank
of Bengal back in 1806 when it was started is today the oldest Indian bank in existence.
Nationalized Banks
(19)
RESERVE BANK OF INDIA
Central Bank and supreme monetary authority
Non-Scheduled Banks
Foreign
Banks (31)
Private
Sector (22)
SBI &
Associates (7)
(7) ((7
Regional Rural
Banks (82)
Urban
Cooperatives
Rural
Cooperatives
Scheduled Banks
Cooperative
Public
Sector
Commercial
The IInd Schedule
To be included in the 2nd Schedule,
a bank:
� Must have a paid-up capital
and reserves of an aggregate
value of not less than
Rs.500,000/-
� Satisfy the RBI that its affairs
are not conducted in a
manner detrimental to the
interests of its depositors,
shareholders and society.
Local Areas
Banks (4)
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facilities to small and marginal farmer, agricultural labourers, artisans and small entrepreneurs.
� Nationalized Banks: This group consists of erstwhile private sector banks that were brought under government
control. The Government of India Nationalised 14 private banks in 1969 and another 6 in the year 1980, of which, New
Bank of India was merged with Punjab National Bank.
� Old Private Sector Banks: This group consists of banks that were established by the privy states, community
organizations or by a group of professionals for the cause of economic betterment in their areas of operation. Initially
their operations were concentrated in a few regional areas. However, their branches slowly spread throughout the
nation as they grew. These Banks are registered as companies under the Companies Act 1956 and were incorporated
prior to 1994.
� New Private Sector banks: RBI permitted formation of new private sector Banks after accepting the recommendations
of Narasimham Committee with an objective to bring more competition and efficiency in the banking sector. These
banks were started as profit oriented public limited companies. These banks are technology-driven and thus usually
better managed than other banks. Axis Bank is among the first banks to start operations as a new generation Private
sector bank. New Private Sector Banks came into existence after 1994.
TOTAL OF 19
NATIONALISED BANKS
TOTAL OF 22 PVT BANKS TOTAL OF 31 FOREIGN BANKS
16 OLD PRIVATE SECTOR BANKS
Allahabad Bank City Union Bank Ltd. The Royal Bank of Scotland
Andhra Bank Development Credit Bank Ltd. Abu Dhabi Commercial Bank Limited
Bank of Baroda Ing Vysya Bank Ltd. American Express Bank Limited
Bank of India The Karnataka Bank Ltd. Antwerp Diamond Bank N.V.
Bank of Maharashtra Nainital Bank Ltd. Arab Bangladesh Bank Limited.
Canara Bank SBI Commercial & International Bank Ltd. Bank Internasional Indonesia
Central Bank of India Tamilnad Mercantile Bank Ltd. Bank of America NA
Corporation Bank The Bank of Rajasthan Ltd. Bank of Bahrain and Kuwait B.S.C.
Dena Bank The Catholic Syrian Bank Ltd. Bank of Ceylon
Indian Bank The Dhanalakshmi Bank Ltd. Barclays Bank PLC
Indian Overseas Bank The Federal Bank Ltd. BNP Paribas
Oriental Bank of Commerce The Jammu & Kashmir Bank Ltd. Chinatrust Commercial Bank
Punjab & Sind Bank The Karur Vysya Bank Ltd. Shinhan Bank
Punjab National Bank The Lakshmi Vilas Bank Ltd. Citibank N.A..
Syndicate Bank The Ratnakar Bank Ltd. Credit Agricole Corporate and Investment Bank
UCO Bank The South Indian Bank Ltd. Deutsche Bank AG
Union Bank of India JPMorgan Chase Bank
United Bank of India 6 NEW PRIVATE SECTOR BANKS Krung Thai Bank Public Company Limited
Vijaya Bank HDFC Bank Mashreqbank psc
ICICI Bank MIZUHO Corporate Bank Ltd.
State Bank of India (SBI) Axis Bank Oman International Bank S.A.O.G.
6 Associates of SBI Indusind Bank Societe Generale
State Bank of Bikaner & Jaipur Kotak Mahindra Bank Sonali Bank
State Bank of Hyderabad YES BANK Standard Chartered Bank
State Bank of Indore State Bank of Mauritius Ltd.
State Bank of Mysore # 4 LOCAL AREA BANKS The Bank of Nova Scotia
State Bank of Patiala Coastal Local Area Bank Ltd The Bank of Tokyo-Mitsubishi UFJ Ltd.
State Bank of Travancore Capital Local Area Bank Ltd The Development Bank of Singapore Ltd.
Krishna Bhima Samruddhi Local Area The Hongkong and Shanghai Banking
Corporation Ltd. Other Public Sector Banks South Gujarat Local Area Bank Ltd United Overseas Bank
IDBI Bank Commonwealth Bank of Australia
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RE GU L A T O R Y FR A M E W O R K
Banks in India are broadly governed by the two umbrella acts viz.
� Reserve Bank of India Act, 1934: which specifies the powers of RBI over the banks
� Banking Regulation Act, 1949
In addition, banks like cooperative banks, development banks etc., which are formed/registered under the separate acts like
Central or State Cooperative Societies Act, RRB Act etc., are also governed by the respective acts.
The functions of the banks are expected to be strictly within the regulations governing them and they are being
supervised/monitored by RBI through their various supervision tools like calling for reports/returns, inspection,
introducing disclosure norms etc., as well as other regulatory authorities like Registrar of Co-operative Societies in case of
co-operative banks.
In addition to the above, the banking operations are also subject to the legal provisions contained in certain other Acts as
well some of which are as under:
� The Negotiable Instruments Act, 1881.
� The companies Act, 1956
� The Income Tax Act, 1961
� Partnership Act, 1932
� Indian Contract Act, 1872
� Securities and Exchange Board of India Act, 1992
� Transfer of Property Act, 1882
� Indian Stamp Act, 1899
� Registration Act, 1908
� Sale of Goods Act, 1930
� Limitation Act, 1963
� Information Technology Act, 2000
� Bankers Books Evidence Act, 1891
� Banking Secrecy Act,
� Prevention of Money Laundering Act, 2002
� Foreign Exchange Management Act, 1999
� Foreign Contribution (Regulation) Act, 1976
Financial Regulators in India
� Reserve Bank of India (RBI)
� National Housing Bank (NHB)
� Securities and Exchange Board of India (SEBI)
� Insurance Regulatory and Development Authority (IRDA)
� Pension Fund Regulatory and Development Authority (PFRDA)
� Institute of Chartered Accountants of India (ICAI)
Self-Regulatory Organizations
In addition to the above legal framework, banks in India also have Self Regulatory Organisations (SROs) in the financial
system. At present, there are four SROs in the financial system -
� Indian Banks Association (IBA)
� Foreign Exchange Dealers Association of India (FEDAI)
� Primary Dealers Association of India (PDAI)
� Fixed Income Money Market and Derivatives Association of India (FIMMDA)
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Account Opening A customer’s formal relationship with any bank begins with Account Opening. In our bank the accounts of the customers
are usually not opened at branches. The applications (known as Account Opening Forms or AOFs) are received, scrutinized
and then forwarded to Central Processing Unit (CPU)2 and where they are eventually opened.
In order to prevent misuse of banking channel for perpetration of financial frauds, money laundering, financing terrorism
etc., Reserve Bank of India has as a part of their initiatives to prevent suspicious activities, advised banks to follow certain
procedure which are known as Know Your Customer (KYC) guidelines.
Guidelines for Opening of Savings Bank Account and Term Deposits Accounts: 1. Account of Resident Individual:
For account of individuals, a proof of photo identification and proof of address to be enclosed with Account Opening
Form. A copy of PAN Card or a declaration vide Form-60 also is mandatory to be obtained. The account opening form
should be signed by the individual and photograph should be affixed. A comprehensive list of documents qualifying to
be attached as id & address proof is enumerated in below mentioned table – A and B respectively. A single copy of
document is sufficient if that particular document is appearing in both the tables.
2 Like the CPU of a computer, the CPU Department of our bank processes all the information sent by branches and stores it in powerful
computers.
Table A
Table B
Proof of identity (Any one of the following) Proof of address (Any one of the following)
1. PAN Card
2. Passport (valid)
3. Election Card
4. Photo Identity issued by Government / Defence
services / Public Sector undertaking
5. Letter from recognized public authority / Defence
Authority /public servant verifying the identity and
photograph of the applicant
6. Driving Licence – Care needs to be exercised to
ascertain the genuineness and validity.
7. Ex-Serviceman Card / Bar Council / Indian Medical
Association Card / Senior Citizen Card
8. Arms Licence issued by State / Central Government
of India Authorities
9. Freedom fighter’s pass issued by Ministry of Home
Affairs, Government of India with photograph of
applicant
10. Pension payment order / book / card issued by State
/ Central Government of India
11. Printed Ration Card with photograph of applicant
12. Household Card with photograph issued by
Government of Andhra Pradesh
13. ID card with photograph issued by Government of
Jammu and Kashmir
14. Bank passbook with photograph issued by
nationalized banks along with cheque from the same
account. This passbook should have transaction for
the last 6 months.
15. Photo Social Security Card (Smart Card) issued by
Central / State Government or Union Territories
16. Certificate issued by the Headman of the Local Area
for North Eastern States. Branch to confirm that the
certificate is issued by the right person.
17. For married women, proof of identity with her
maiden name, if supported with a verified true copy
of marriage certificate are acceptable as valid
identity proof.
1. Passport. Only if the address mentioned in the
AOF is the same as the address appearing on the
passport.
2. Telephone / Mobile / Electricity Bill. Any
connection to be at least 6 months old in the name of
the account holder / spouse / family member, and the
bill date should not be older than 3 months from the
account opening date.
3. Ration Card
4. 6 months bank account / credit card statement
5. Letter from a recognized public authority or public
servant verifying the address of the customer.
6. Gas connection registration letter
7. Income tax / Wealth tax assessment order
8. Domicile certificate with communication address
and photograph
9. Certificate by Village Extension Officer (VEO) /
Village Head or equal or higher rank officer. Branch to
confirm that the certificate is issued by the right person.
10. Registered lease / leave and licence agreement with
a utility bill in the name of the landlord.
11. Address proof in the name of the father / mother /
spouse / blood relative of the applicant, as a supporting
document that establishes the relationship between the
applicant and the person in whose name the address
proof is available.
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1. a. Joint Accounts
For joint accounts the above documents are required for both, the applicant as well as the joint applicant(s). However, in
case of husband and wife, address proof of any of the spouse can beobtained, with a copy of the marriage certificate.
Similarly, in case of father-daughter, father-son, mother-daughter, mother-son or vise-verse, address proof of only one
holder can be obtained if a valid proof is obtained such relationship. This valid proof can either be a birth certificate,
passport, PAN Card, Certificate from a State/ Central Education Board or from a recognized University.
If the account is jointly held by more than two individuals, the address proof of the first holder of the account only can be
obtained, in case all the holders hail from the same family and there is sufficient documentary proof (to the satisfaction of
the Branch) is available to prove this.
Joint Account with an illiterate person can be opened only as “Jointly operated” and not as “either or survivor”, taking
thumb impression of the illiterate person. However, in such cases, cheque book cannot be issued and third party cash
withdrawal cannot be made. A certificate vide Annexure-X also should be obtained.
1. b. Accounts of Hindu Undivided Family (All of the following documents to be obtained)
a) Copy of PAN / Form 60 of HUF
b) Declaration from the Karta
c) Proof of Identification and address of Karta as per documentation for individual (Table A & B respectively in the
section 1 above)
d) Prescribed Joint Hindu Family Letter signed by all the adult coparceners
1. c. Account of Senior Citizen (All of the following documents are to be obtained)
a) Proof of Identity such as Senior Citizen Card or any other proof of identity (as listed in Table A) subject to Bank’s
satisfaction and Proof of Address (as listed in Table B)
b) Proof of Date of Birth to the satisfaction of the Branch.
1. d. For Newly Married Woman
In addition to the documents to be obtained as in Table A and B for individuals, the identity and address proof of the
Husband is to be taken along with any of the following documents: -
a) Marriage Certificate / affidavit
b) Wedding photograph along with Marriage invitation
1. e. Account of Foreign National
i) Foreign nationals on employment or setting up business: These persons are eligible to open normal rupee account
with following documents:
• Passport with valid visa
• Letter from employer/ contract letter/ permission from RBI in case of business, if applicable
• Address Proof as per Table B above.
ii) Foreign Students: They are eligible to open normal rupee account with following documents:
• Passport with valid visa
• Proof of admission
• Address Proof as per Table B above
iii) Tourist on Visit to India: They are eligible to open a Non-Resident (Ordinary) Rupee Account (NRO Account) for a
maximum period of six months and the only document required is Passport with valid Visa.
For the extensive guidelines on operations of the accounts of foreign nationals, circular no. TREASURY/ IB/ 021/ 2004-
05 dated 29.03.2005 may be referred.
1. f. Account of Minors:
There are two categories of account of Minors, viz:
a) Account of Minor under Guardianship and to be operated by Guardian: Such accounts are like normal resident
individual accounts where the minor is below the age of 12 years at the time of account opening. The documents to
be collected for opening such accounts are id & address proof of the natural/court appointed guardian as per Table
A & B above. A certified copy of birth certificate/ school certificate (establishing Date of Birth) and applicable
declaration vide appendix: (I) – V, VI or VII of Manual of Instructions – Retail banking, Vol. – 1: Deposits to be
obtained for opening a Savings or Term Deposit Account. If the guardian is appointed by the court, a certified copy
of court order also should be obtained.
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b) Account of Minor to be operated by Minors alone: If the minor is over and above of 12 years of age (but below 18
years) the account can be opened in his/her name singly provided the minor is literate and can sign uniformly.
Otherwise, the account can still be opened under guardianship. To open the account of the minor to be operated
singly by him/her, following documents are required to be obtained:
• A copy of birth certificate or school certificate establishing date of birth
• A letter from the parents/ natural guardian/ court appointed guardian of the minor as per attached
Annexure-IX.
• Address and ID proof of the natural guardian/ parents/ court appointed guardian as per table A&B above
• A copy of school photo ID card of the minor or a certificate from the school identifying the photo of the
minor
• Applicable declaration vide appendix: (I) – V, VI or VII of Manual of Instructions – Retail banking, Vol. –
1: Deposits
1.g Account of Illiterate Person:
The account can be opened with left thumb impression in case of a male, and right thumb impression in case of a female. Id
and address proof should be taken invariably as per Table A&B above. A certificate from the Branch Official as per
Annexure-X should be attached with the Account Opening Form. However, in such cases, cheque book cannot be issued
and third party cash withdrawal cannot be made. The implication of operation of account should be told to the illiterate
person in Hindi/ Vernacular language in presence of a witness and a certificate vide Annexure-X should be attached with
Account opening form.
1.h Account of Visually challenged person:
Apart from id & address proof vide table A&B above a certificate vide Annexure – X, with witness’s signature should be
attached with Account opening form. Regarding operation of the account, paragraph no. 1.53 to 1.57, Manual of
Instructions- Retail Banking, Vol.-1, Deposits should be referred.
1. i Account of Pardanashin Lady:
The Account Opening Form should be signed by two witnesses, identifying the photograph in addition to id & address
proof of the lady as per Table A&B above.
2. Salary Accounts
2.1 Salary Accounts are the accounts where an employer enters into an understanding with the Bank for opening accounts
of the employees for their Salary to be credited in respective accounts. The KYC requirement to open these accounts is the
same as in the case of normal resident individual account, depicted in section 1 above. However, there are certain deviations
permitted for these accounts which are mentioned below.
2.2 A due diligence may be done by the Branch for Government/ Corporate to consider acceptance of the Company
documents as Identity and Address proof. We give hereunder, the due diligence grades which may be given to different
Corporate. Any Corporate which satisfies any one criteria as per the under mentioned chart for being considered as a
reputed and reliable company, the Identity and Address proof submitted by the Company for its salaried employees can be
considered as an acceptable document towards fulfillment of KYC norms.
The Corporate would be classified as under:
Sr.
No.
Particulars Qualifies For
Exemption
1 Corporate listed on any stock exchange Yes
2 Subsidiaries of listed Corporate Yes
3 Public Limited Corporate Yes
4 Multinational Corporate Yes
5 Company with more than 100 employees Yes
6 Company with Turnover above Rs.50 crores Yes
7 Multilevel Corporate No
8 Proprietary/Partnership Corporate No
In the case of all corporate satisfying criteria as per the above chart, the Identity Card issued by the Company may be
considered as a fulfillment of the KYC norms for employees not able to produce the prescribed documents towards identity
proof. However for Government Organization the id card issued or a photo identity letter issued by concerned Government
department/ Body/ Authority can be considered as KYC complied document.
If the identity Card does not indicate the address, Address Proof document (Telephone bill/Bank account
statement/Electricity bill/Ration card/Letter from Employer) will have to be produced.
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In case of a company satisfying the above criteria which does not issue an Identity Card and where even the employees are
not able to produce the prescribed address proof documents mentioned above towards KYC compliance, the employer
company can submit a letter signed by the Authorized Signatory(ies) certifying the photograph and the address of all the
concerned employees as appearing in the account opening form. The letter should mention the names of their employees.
2.3 In each case involving Corporate belonging to categories 1 to 6, the Branch Heads/Branch Sales Manager will have to
furnish a certificate stating that on the basis of due diligence conducted they have satisfied themselves as to the exempted
status of the concerned Company which will have to be kept attached to the account opening form.
2.4 Salary account of defence personnel: Salary account of defence personnel is opened under scheme code SBSDF. For the
purpose of id proof any of the following may be accepted apart from the list given in Table A of 1 above:
• The officer should verify the original ID card and mention the ID Card number on the AOF with the
legend “Original Sighted” under his/her initial.
• Introduction by the Unit / Regiment Head or Authorised Signatory of the Unit / Regiment
• Photocopy of the salary slip with photograph duly attested by the Unit / Regiment Head / PAO / DDO
For the purpose of address proof of accounts under SBSDF, a separate address proof is not mandatory if the correspondence
address is given as the address of the battalion. If any other address is mentioned as correspondence address, a separate
address proof should be obtained as per Table B under point no. 1 above.
2.5. Additional Documents Prescribed For The Above Corporate (Need Not be Insisted Upon from the Employee(s) of
Government & Defence Organizations/ Authorities/ Bodies/ Departments):
The above relaxations are given to certain reputed corporate which are known for their Corporate Governance and strong
processes with regards to employee recruitment & management. However in wake of the recent happening’s, and to ensure
that these relaxations are not misused for opening fictitious accounts and in order to further strengthen our KYC when
opening salary accounts with the relaxed norms the following changes may be considered.
Scenario 1: In cases where the applicant has provided a valid & acceptable Photo Id & Address proof then the corporate
only needs to provide a introduction by way of authorizing the application form or issuing a letter towards the introduction
Scenario 2: In cases where the applicant has only provided a valid & acceptable Photo Id but has not provided a Address
proof then the corporate needs to provide a declaration on their letter head confirming the bonafides of their employee
along with the address as per their records in the attached format. Refer annexure VII.
Scenario 3: In cases where the applicant has only provided a valid & acceptable Address proof but has not provided a valid
Photo ID proof then the corporate needs to provide a declaration on their letter head confirming the bonafides of their
employee along with the Photo duly stamped, address as per their records in the attached format. The applicant will also
have to provide at least one additional document from the list below Refer annexure VII
Scenario 4: In cases where the applicant has not provided both a valid & acceptable Photo Id proof Address proof then the
corporate needs to provide a declaration on their letter head confirming the bonafides of their employee along with the
Photo duly stamped and address as per their records in the attached format. The applicant will also have to provide at least
one additional document from the list below. Refer annexure VII
2.6 In order to strengthen KYC, It is hereby decided that in the case of Scenario 3 & 4 mentioned above, the applicant has to
submit any one the following additional document at the time of account opening. The Account opening application form
will have to be supported by any one of the following document failing which we shall not open the Salary account.
a. School Leaving Certificate
b. College Leaving Certificate
c. Mark sheet copies of SSC, Junior College, Senior College, Graduation, Post Graduation etc.
d. PPF Passbook (Address page, latest transaction page not more than 12 month old transaction)
e. Passbook copy of any other Bank account that the Customer Holds (Address page, latest
transaction page not more than 12 month old transaction)
f. Credit Card statement (not more than 3 months old)
3. General Covenants: Accounts of Resident Individual
a) In all cases of Partnership firms, Limited Companies and Association of Persons (AOP), persons authorized to
operate the account should also furnish their photograph, identity proof and address proof
b) Every document submitted for opening of account has to be verified with its original and a suitable stamp
confirming the same is to be affixed and signed by the verifying official
c) In case of accounts of individual, the PAN/PAN allotment letter/ GIR No./Form 60 has to be obtained.
d) For all other matters of account opening and field verification please refer to instructions contained in Circular No.
Compliance/39/2008-09 dated January 23, 2009.
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e) Every Account Opening Form (AOF) has to be affixed with the latest photograph (Not more than 6 months old) of
the prospective customer.
f) Care needs to be exercised by the Branch to compare the signature on the AOF with the signature (if available)
appearing on the document submitted. In case of signature mismatch in AOF as with the documents provided for
customer identification, the Branch Head would have to certify that the AOF has been signed by the
accountholders in his/branch officials presence. A sample of this certificate is attached as Annexure-III. This
certificate has to be attached to the AOF before sending the same to CPU for account opening.
g) AOF with existing customer ID - Branch Head has to certify that the customer ID is backed by all the necessary
documents which are held by the Branch and original account is KYC compliant.
h) In case the main account is opened at some other branch, the branch having original account need to confirm
through mail that the main account with them is KYC complaint. In such cases, Branch is required to take a fresh
address proof document.
i) PAN has to be verified on the Income Tax site and documented on the copy of the PAN submitted along with the
AOF.
4. Account of Non-Resident Indian (NRI)
Over period of time, Bank has issued comprehensive and exhaustive instructions relating to KYC documentation for
NRI/PIO customers. These instructions are consolidated here-under. The below-mentioned guidelines override/supersede
instructions contained in previous circulars and other communiqués on the subject.
4.1. General Accounts (NRI Normal, NRI Prime, NRI Priority, NRI Zero etc.)
Customer
sub-segment
Proposed documents Attestation formalities
NRIs Option 1
Copy of current, live Indian Passport & valid work,
residential or student visa
To be attested by AXIS Bank’s staff#1
or by an official of the Indian Embassy
or a Notary Public or by customer’s
Bank abroad or by an authorized
officer of our overseas alliance
partner#2 or by the overseas employer
of the customer#3.
#1 Sales Executives/Sales Officers
posted abroad can attest the
documents, but not SE’s/SO’s posted in
India
#2Attestation by overseas alliance
partner is permitted only in cases
where Bank has a formal apex level
agreement with the concerned Finance
Company and specimen signature of
the attester is available on our records.
#3Attestation by overseas employer is
permitted only for NRI Salary accounts
Option 2
1. Copy of current, live Indian Passport & valid
work, residential or student visa PLUS
2. Bank statement of a recent date (ideally not more
than 6 months old) in the name of the applicant at
his/her Bank in the country of residence.[ E-
statement / Bank passbook also can be accepted. ]
PLUS
3.
a) A self-cheque (in rupee or foreign currency)
drawn by the customer on his account abroad or his
existing NRE a/c with a Bank in India. OR
b) Copy of the driving license/social security
card/work permit/green card etc. issued by a
Statutory/Government/Quasi-Government
Authority in the country of residence (list not
exhaustive but indicative)
All copies (except cheque) to be self-
attested by the applicant. Copy of the
cheque to be attested by an Axis Bank
official along with a certification that
cheque has been presented for
payment to drawee bank.
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PIOs
For KYC
Copy of the current & live foreign passport establishing
his/her citizenship.
FOR ESTABLISHING PIO STATUS
a) Copy of PIO card issued by the Government of India
OR
b) Copy of a recent bank statement of his NRE a/c with a
Bank in India or a cancelled personalized cheque from
his NRE account with the Bank
OR
c) A copy of the current Indian Passport of his spouse,
father or mother (the name of the
spouse/father/mother should match with
corresponding details in his passport)
OR
d) A letter of introduction from an existing customer of
the Bank confirming that the applicant is a Person of
Indian Origin and that he is not a person of Pakistani
or Bangladeshi Nationality.
OR
e) Indian Passport, Driving License, PAN Card Voter id
card or any other document issued by a
Government/Quasi Government authority in India in
the name of the applicant at any point in time (even
expired/lapsed documents are acceptable)
However, no separate proof for PIO status determination
need be insisted upon in the following cases.
a. When the place of birth as appearing in passport is
part of post independent India and the date of birth of
the applicant is on or after 26th January, 1950. The
rationale is that any person born in India after 26th
January, 1950 automatically becomes citizen of India
by birth as per Citizenship Act, 1955.
b. When the account is getting opened through a
correspondent/partner Bank tie up formed at the apex
level. In such case, the customer should be introduced
by the Partner Bank and a copy of his/her account
statement with the partner bank should be submitted
as additional document.
c. When a branch official in the rank of Manager or above
has certified in the AOF that he is fully satisfied about
the PIO status of the applicant. This discretion should
be used judiciously and must not be delegated to an
officer below the rank of Manager (certification to be
given alongside the mandatory certification by Bank
official required for opening the account)
Attestation formalities are the
same as prescribed in Option 1 for
NRI’s.
In case a customer wants to opt
for self attestation then, the
documents prescribed (KYC +
PIO) should be accompanied by a
‘self’ cheque (drawn on his
account abroad or on his NRE a/c
with a Bank) and his Bank
Statements / E-Statements /
Passbook copy in the country of
residence.
4.2 PIS Accounts: -
In addition to the above documents for NRI/PIO copy of PAN Card is mandatory for PIS Accounts.
4.3 NRI Salary Accounts: -
4.3.a. Wherever proper Passport and visa are available, accounts are opened in
the normal course after obtaining documents prescribed for general accounts for NRI/PIO together with proof of
employment in the Organization/Establishment from which salary credits are expected.
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4.3.b Opening of NRI Salary Accounts in Freeze Code with basic KYC :
Where the above (as in sec. 4.3.a) documents are not available, a normal photo id proof (as stipulated for resident
a/cs) is obtained and address proof by way of letter from the Command Officer is also obtained. Thereafter a/c is
opened in DEBIT FREEZE mode. This facilitates generation of a/c number and WK that can be passed on to the
army officials prior to their departure. Once the officer receives his passport with visa, he arranges to deliver an
attested copy of the same to the Bank Branch who lifts the debit freeze after clearing the discrepancies in AIMS.
4.3.c This process for opening accounts under Debit Freeze to be approved by SVP / President at Retail Banking
Department on case-to-case basis.
4.4 Mariners International Account (SEAFARER / MARINER account): -
Passport, Continuous Discharge Certificate (CDC) booklet which is valid and continuous + Mariner's Declaration
(format attached)
OR
Passport, Valid Visa +Latest contract letter / Letter from organization confirming applicant is an employee + Mariner's
Declaration (format attached)
4.5 Documentation/verification protocol for address/signature proof for all NRI accounts would be as prescribed herein
under.
PROOF OF ADDRESS
Passport to be taken as both Id & address proof wherever Passport address is the same as primary address in
Account Opening Form. Additional address proof should be called for only in the following scenarios: -
a. For NRI’s: - Where Indian Address given in Account Opening Form is not the same as the one shown in
Passport, then a separate proof of customer’s present Indian address to be submitted.
b. For PIO’s: - Where overseas address given in Account Opening Form is not the same as address shown in
his foreign passport [or where the passport contain no address], then a separate proof of customer’s present
overseas address to be submitted.
Acceptable documents for address proof in the above scenarios will be the same as those permitted as address proof
for resident individuals.
4.6 SIGNATURE MIS-MATCH
Normally, Passport signature should be matched with the Account Opening Form Signature. In case the signature in
AOF is materially different from signature in passport then a self signed personalized cheque of NRE account with
other bank or foreign currency cheque should be accepted as a supportive document (where the signature should
match the AOF signature). OR
'Signature Difference Declaration' (as per format in Annexure-IV) should be taken from the customer, which should be
attested only by a Branch official in the rank of Manager or above.
4.7 ADDITIONAL GUIDELINES
4.7.1. Translation of visa: - A few references have been made on the procedure to be adopted when visa is in a foreign
language and the contents are not comprehensible. Accordingly, it has been decided that when visa stamping is in a
foreign language not familiar to the Bank, the following additional documents may be requested.
a. Attested copy of the work permit/ offer letter from the overseas employer
b. Attested copy of existing NRE account statement/passbook in the name of the applicant
c. Attested copy of one-way flight ticket to the destination country.
However in case the applicant is not in a position to produce any of the above documents, then the account may be
opened on the basis of a simple written indemnity cum affidavit of the applicant (in plain paper as per format vide
Annexure-VI) witnessed by a Bank Officer stating the purpose and validity period of visa.
4.7.2 Self-attestation facility will be available only for NRI’s/PIO’s residing in countries that are members/sub-
members of the Financial Action Task Force (FATF)[list of countries enclosed as Annexure-VI].
4.7.3 Whenever self-cheque is accepted as additional proof, the signature on the same should match with that in the
AOF.
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4.7.4 An NRI/PIO can choose either overseas or Indian address as his communication address and no additional
documents (other than what is already prescribed in the Table above) will be required for such a choice. For example,
an NRI can receive his statements in his overseas P.O. Box Number though there may not be any documents to
corroborate this address as his own. A PIO need not give any Indian address in his AOF and if giving need not
produce any address proof for the same.
4.7.5 For PIO’s (foreign passport holders), in addition to documents establishing KYC & PIO status, PIO declaration
should also be signed and submitted (format already incorporated in the AOF)
4.7.6 Visit visa/tourist visa etc. that indicate a temporary / transient stay are not to be accepted for setting up NRI
accounts. Ideally, the passport & visa should have a residual validity of at least 3 months, though the Branch Head
can waive this condition in deserving cases at his discretion, in which case a noting to that effect should be recorded
in the AOF.
4.7.7 Computer generated bank statements, e-statements passbook extracts etc are acceptable and there is no need to
insist on signed bank-statement.
4.7.8 In some Countries like Saudi Arabia, Indonesia, etc where Work Permit (IQAMA) or Residence Permit or STAY
Permit or Employment Permit is issued to NRIs and they do not have any other document issued by the overseas
government of the country where they reside / work except for the above said document which construed as a VALID
VISA as well as a document issued by the overseas government authority. We may accept the same without
considering it as a shortfall or a discrepancy in opening of the said Account.
4.7.9 For application received from our existing NRI customers for opening additional accounts, we may accept just Self
attested copies of passport and Valid Visa along with duly filled and signed application form subject to the following.
i) Passport details should match with existing finacle records
ii) Visa should be valid for at least 3 months from the date of a/c opening
iii) Address should be the same as in finacle. Wherever a new a/c is opened with a different address we should ask
for full KYC.
iv) Signature in the AOF should fully match with that in finacle
4.7.10 Where applications received from prospective customers who have attested their passport and visa by Indian
Embassy or Consulate, bearing seal and attestation only on the 1st page and round seal in original on the remaining
pages.
4.7.11 In case of a joint account opening, a foreign currency cheque or NRE cheque (personalized) showing names of
both applicant but drawn only by the 1st applicant, may be accepted as cheque requirement from 2nd holder and
additional document such as driving license, social security card, or additional document issued by overseas
government may not be required.
4.7.12 There may be stray cases where 2nd applicant who is the spouse of the 1st applicant is on a residence permit or
dependant visa and does not have a bank account overseas due to which overseas bank account statement as required
for self attestation cannot be produced. A waiver is given in such cases on production of bank statement provided all
the other required documents are in place.
4.7.13 Indian address proof of an NRI Customer can be in the name of his immediate family members
(spouse/father/mother), provided the relationship between the NRI and the address holder is clearly established
through passport and the family member gives his no objection in writing for having his address as the Indian address
of the NRI applicant.
4.7.14 In case of our existing account holder, the latest copy of our bank statement may be acceptable as his Indian
address proof for new NRI account opening.
4.7.15 On site verification of addresses is waived for NRI Accounts.
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4.8 SB-RFC Account
A person who was an NRI for a minimum period of one year can open an SBRFC (Savings Bank Resident Foreign Currency)
account any time after his return to India. This account is available in major 5 currencies (USD, GBP, EURO, AUD, CAD).
The extant eligibility norms on SB-RFC a/cs for returning NRIs are as follows:
• A person should have enjoyed non resident status at least for one year to be eligible to open RFC a/c.
• He can open the a/c either as SB, CA or FD.
• Permissible credits are those emanating from foreign exchange revenues/assets pertaining to the period during
which the person was a non-resident (e.g. balance transfer from NRE/FCNR deposits, pension/insurance/bond
payments received from abroad, proceeds of overseas assets acquired while being a non-resident etc)
It is not mandatory that he should have RNOR (resident but not ordinarily resident) status for opening or maintaining SB-
RFC account. SBRFC a/cs once opened can be maintained indefinitely without any expiry time-frame. The eligibility of a
person for opening SBRFC a/c should be verified based on documents submitted with AOF. Suggested documents in this
regard are –
• Copy of passport and visa (to prove that customer enjoyed NRI status in the past)
• RFC declaration (format attached vide Annexure - VIII)
• Copy of NRI a/c statement or cancelled NRI cheque held by customer previously - preferable but not mandatory
(either from Axis Bank or other bank)
4.9 DEVIATIONS
No officer will have powers to allow deviations in respect of basic KYC norms. However, Segment Head (NRI) at
RBD will have the discretion to allow deviation in other areas of viz. PIO status proof, signature proof etc. on very
genuine and deserving cases, based on the recommendation of the Branch Head. The reason/justification for allowing
such deviations must be properly documented in all sanctions.
5. No Frills (Azadi) Accounts
“No Frills” account can be opened with some relaxed proof of identity and address of the individual. For such
accounts;
• Balances should not exceed Rs. 50,000/- at any time
• The sum total of all credits to the account should not exceed Rs. 1 lakh during the financial year.
The moment the account crosses the monetary thresholds mentioned, the account should be treated as a normal savings
bank account and should be subjected to KYC stipulations as specified for a normal individual account.
Apart from documents mentioned in Table A under section 1, following also can be accepted as id proof:
• Introduction from an existing account holder who has been subjected to full KYC due diligence and whose account
is at least six months old with satisfactory transactions. OR
• Any other evidence as to the identity the customer to the satisfaction of the Bank. This should be valid only in the
case of group accounts sourced from a union body or association whose office bearers could attest the identity of
its members. OR
• Application on plain paper with photograph of the applicant pasted on it. The application should express desire to
open a “No Frills” Saving Bank Account, declare address for correspondence. An introduction by any government
official or existing account holder or authorized signatory of a corporate body or firm or an institution, which is
operating a KYC compliant account with the bank. The introducer should attest the address and sign across the
photograph of the applicant.
Apart from documents mentioned in Table B under section 1, following also can be accepted as address proof:
• Any evidence to prove the address of the customer to the satisfaction of the Bank. This should be valid only in the
case of group accounts sourced from a union body or association whose office bearers could attest the identity and
address of its members. OR
• Application on plain paper with photograph of the applicant pasted on it. The application should express desire to
open a “No Frills” Saving Bank Account, declare address for correspondence. An introduction by any government
official or existing account holder or authorized signatory of a corporate body or firm or an institution, which is
operating a KYC compliant account with the bank. The introducer should attest the address and sign across the
photograph of the applicant.
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6. Account of Institutions/ Organizations:
Account of non-individuals (except “HUF”) is opened under scheme code SBTRS. For the convenience of business they
have been classified into 4 constitutions codes of 9-A, 9-B, 9-C & 9-D in finacle. However, technically, and as per their
legal identity they are classified as: Section 25 Company, Government, Society & Trust. This is based on their legal
constitution and registration. Accordingly an NGO or Club can either be a Section 25 Company, Society or Trust based
on its legal identity, but NGO’s account should ideally be opened under constitution code 9-B in finacle and Club’s
account should ideally be opened under constitution code 9-D.
Hence, It is possible that for a “Trust”, “Society” or “Section 25 Company” account is opened under either constitution
code 9-A, 9-B, 9-C or 9-D, depending upon the business consideration. The decision of the Branch shall be final as what
account has to be opened under which constitution code (in finacle) while the documentation for account opening shall
be complied with the basic characteristic of the organization depending upon their constitution as a legal entity and
their registration.
For all the accounts under SBTRS, KYC compliance has to be done (as per detail in the following paragraphs) for the
entity, which is opening the account and the KYC for the individuals who are authorized to open and operate the
account. The KYC of the individual/ individuals has to be as per stipulation given in the table-A&B above under point
no. 1.
6.1. Documents For accounts of Section 25 Companies:
There are certain companies registered under section 25 of Companies Act 1956 or under the corresponding
provisions In Indian Companies Act 1913 and have the option not to add to their names the word ‘limited’ or the
word ‘private limited’. Their Savings/ Term Deposit account can be opened with following documents:
Proof of identity (All of the following documents are to be obtained)
• Certified ‘True and Updated’ copy of Articles of Association, Memorandum of Association (MOA) and byelaws.
• Certified ‘True and Updated’ copy of Certificate of Incorporation
• Certified true copy of Board Resolution listing out the names of authorized signatories and financial powers vested
(if any).
• Specimen signatures and photographs of all authorized signatories duly certified.
• Latest list of all the Directors with their addresses, duly dated and signed by the Company Secretary / director(s)
and Form 32 in case the directors are different from the list mentioned in the MOA.
• Proof of identity and address of all the authorized signatories as per Table A and B respectively.
• License issued under Section 25 of the Companies Act.
• Declaration for availing of at par cheque facility with no limit on clearing payments at centres other than the base
branch as per the draft given below:
‘We, the Trustees / Office-bearers of__________ Trust / Co-operative / Association/ Society / Section 25
Company, hereby declare that all funds withdrawn by us from our savings bank account / s are for the
attainment of the objects of the Trust / Co-operative / Association / Society / Section 25 Company or for the
benefit of the ultimate beneficiary.’
6.2. Government Body/ Government Department/ Defence Establishment
For Government Department Savings Bank Accounts
Any government department/body (being a Government Department / Semi-Government / Quasi Government Body) receiving any budgetary allocation for performance of their functions is prohibited from opening a savings account unless the Government Department/Body receiving the budgetary allocation receives the same for implementation of various programmes / schemes sponsored by Central Government / State Government and in such cases, an authorization letter from the respective Government Department/Body is essential to open the Savings Bank Account.
6.2.1. The following documents are required:
• Duly Filled in Account Opening Form
• “Authority Letter” (An “Authority Letter” is a document, wherein a Government Officer directs the Bank to
open an account mentioning the name and designation of Authorized Signatory/ Signatories and mode of
operation). It is important to note that the format of “Authority Letter” cannot be suggested uniformly as the
same differs widely from one state to another state and one organization to another organization.
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• Address proof of Government Organization, Central/State Government Department and Defence
Unit/Establishment – If available. An address on the letter head of the government body may be accepted as
the address proof. Anyone of the documents no. 2, 4, 5,6,7,9 or 10 enumerated in the Table B under point 1
above also can be accepted for the purpose of address proof of the entity.
• Photograph of Authorized Signatory/ Signatories – If available.
• Identity and address proof of Authorized Signatory/ Signatories – If available. This id & address proof may be
as per the list in Table A and table B of point no. 1 above.
In cases where documents mentioned as “if available” could not be obtained, a certificate from the Branch Head as
per the enclosed format (Annexure-I) is to be attached to the AOF and kept on records. It should be noted that the
said officer may after sometime get transferred and when the intending incumbent occupies the chair, this exercise
to co-relate to new incumbent with the designation has to be done again.
The above certificate should be enclosed invariably in case the ‘Authority Letter’ is signed by the official who is the
same person named as the authorized signatory for the account.
6.2.2. In case of Departments/ Bodies other than Local Body and Government Offices, where enough clarity does not
exist for a particular body whether it is of Government or not, any of the following may be provided with account
opening form:
• A link of official website showing that a particular organization is promoted/ sponsored/ affiliated/ associated
or linked to Central or State Government
• A letter head indicating that a particular organization is of Government
• A copy of Gazette Notification of Central or Sate Government
• Any other valid document to the satisfaction of the Bank
• Authority Letter” (An “Authority Letter” is a document, wherein a Government Officer directs the Bank to
open an account mentioning the name and designation of Authorized Signatory/ Signatories and mode of
operation)
6.2.3. Account’s nomenclature may be as decided by the concerned Government Body/ Department, which is opening
the account, to be mentioned in the “Authority Letter” .
6.2.4. The above documentation will apply to all the autonomous/ affiliated/ sponsored/ linked/ associated/ offshoot
bodies of Government, irrespective of their activity, after having them recognized as “Government Body/ Department”
as per point no. 6.2.2 above.
6.3. Trust Accounts –
The entities which may be known by names like Trust, Foundation, Clubs, Association, NGO, etc but are formed as
Trust, based on a Trust Deed under Indian Trust Act 1882 or relevant State Acts (Like Bombay Public Trust Act, 1950),
account is opened under SBTRS.
6.3.1. “Trust” is required to be registered to open an account. A clarification regarding their registration is given below:
If Public Trust, (i.e. the beneficiary of the Trust is public at large).
A copy of the registration and certificate from Charity Commissioner or certificate of tax exemption from Income Tax
Department is to be obtained. At places where Charity Commissioner does not exist, a copy of the registered trust
deed, registered at the office of the Sub-Registrar of Assurances would be required. In such cases, registration remains
as endorsement of the Trust Deed on the face / back of the Trust Deed itself, with the registration / serial number, date,
etc., mentioned and document stamped by the Registering Office.
If Private Trust,
In States, where separate Trust Act does not exists, Trust is formed under the Indian Trust Act and the registration is
done by the Sub-Registrar of Assurances by endorsing the Trust Deed on the face / back of the Trust Deed itself, with
the registration / serial number, date, etc., mentioned and document stamped by the Registering Office.
Will
A Trust account can be opened on the basis of a Will. However, a copy of the probate certified by the court should be
attached with the Will. Such Will can replace the “Registered Trust Deed” for the purpose of opening of account and
the executors and administrators appointed by the court would be the authorized signatory of the account, whose
id & address proof as per Table A & B under section 1 should be obtained. Alternatively, an introduction of the
executors and administrators should be obtained from a reputed lawyer known to the Bank.
6.3.2. Documents to be collected for Account Opening of a “Trust”:
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� Account Opening Form to be signed by Authorized Signatory/ Signatories as per Resolution/ Court Order.
Certificate of registration, if registered (as per explanation given in 6.3.1 above)
� Certified true copy of the Trust Deed / Bye Laws/ Will
� Resolution of the Managing Body of the Trust / Foundation / Association authorizing the individual(s) for
opening and operating the account. Resolution should be as per bye laws/ trust deed
� If applicable, Power of attorney granted to its Office Bearers to transact business on its behalf
� Copy of PAN, if available
� List of the names and addresses of all the current trustees on the letterhead of the Trust signed by the
Managing Trustee or any of the authorized signatories.
� Trust Deed. In case of vernacular language, a self-attested English version copy needs to be submitted.
Alternatively, a translation of the relevant portion of the Trust Deed/ Bye Laws by the Branch Staff with
signature number is required to be attached.
� Declaration for availing at par cheques facility with no limit on clearing payments, at centers other than the
base branch as per format given below.
‘We, the Trustees / Office-bearers of__________ Trust / Co-operative / Association/ Society, hereby declare that
all funds withdrawn by us from our account / s are for the attainment of the objects of the Trust / Co-operative
/ Association / Society or for the benefit of the ultimate beneficiary.”
• Photograph of all the current Trustees should be obtained. In case the Trust Deed has photographs of all the
current trustees, a certified true photo-copy of Trust Deed (with recognizable image of all the current Trustees)
can be obtained in lieu of photographs separately. A list from the Trust should be obtained, mentioning names
and addresses of all the current trustees.
• The id & address proof of the entire authorized signatory to be taken. Documents enumerated in Table A & B
of point no. 1 above respectively should be obtained for this purpose for each and every signatory
• A separate address proof for the Trust may be obtained, which can either of the document’s copy vide point
no. 2, 4,5,7,9 or 10 of Table B of point no. 1 above. In case of non availability of the separate address proof, the
address in the registered Trust Deed/ Bye Law shall be accepted for the purpose of address proof.
6.4. Employee Welfare Trust:
Employee Welfare Trusts are also a private Trust, which is set up by the employer for the benefit of the employee in
general in confirmation with the Labor Laws of the country. They may or may not be registered with the conventional
authorities as in the case of normal Public/ Private Trusts. This can either be a PF Trust, Pension Trust, Gratuity Trust or
Superannuation Trust for the employees of a certain company, which would be evident from their name as well. The
following documents are required to be obtained, while opening such accounts:
• Duly filled Account Opening Form, to be signed by Authorized Signatories as per the resolution
• A certified true copy of Trust Deed/ Bye laws
• A copy of Income Tax Exemption Certificate or a copy of the application made to IT Department for
exemption from paying income tax (In case a copy of application to IT Department is obtained, it should be
ensured that a copy of permission, whenever arrived, should be obtained from the customer).
• Address proof of the Employee Welfare Trust should be obtained. However, if the same is not available, the
address proof of the company/ employer should be obtained, as approved for opening of a current account of
the company.
• A list containing names and addresses of all the trustees should be obtained
• Photograph of all the Trustees should be obtained. In case the Trust Deed has a photograph of all the current
trustees, a certified true photo-copy of Trust Deed (with recognizable image of all the current Trustees) can be
obtained in lieu of photographs separately
• A copy of resolution to open and operate the Bank account should be obtained
• Id and address proof of all the authorized signatories and their photograph should be obtained as per Table A
& B of section no. 1 above respectively.
6.5. Account of Society:
The entities which may be known by names like Trust, Foundation, Clubs, Association, Society, NGO etc but are
registered as Societies and registered under the Societies Registration Act, 1860 or any other corresponding law in force
in State or a Union Territory, the following documents can be collected (The registering office in this case is the
Registrar / Sub-Registrar of Societies).
• Account Opening Form to be filled and signed by the Authorized Signatories as per resolution
• Copy of Memorandum and Articles of Association/Bye-law
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• Certified true copy of registration certificate [in case of society registered under Societies Registration Act,
1860 or any other corresponding law in force in State or a Union Territory]
• Resolution preferably as per Annexure-II
• The id & address proof of the entire authorized signatory to be taken. Documents enumerated in Table A & B
of point no. 1 above respectively should be obtained for this purpose for each and every signatory
• Declaration for availing at par cheques facility with no limit on clearing payments, at centers other than the
base branch as per format given below.
‘We, the Trustees / Office-bearers of__________ Trust / Co-operative / Association/ Society, hereby declare that
all funds withdrawn by us from our account / s are for the attainment of the objects of the Trust / Co-operative /
Association / Society or for the benefit of the ultimate beneficiary.’
• For proof of address of the society, any of the following should be obtained:
1. Copy of Certificate issued by Registrar of Coop Societies.
2. Bank certificate from existing banker.
3. Bank statement of accounts with last 30 days transactions from the preceding 3 months.
4. Registration certificate having address issued by the Central / State or any other local government
authority
5. Either of the document’s copy vide point no. 2,4,5,7,9 or 10 of Table B of point no. 1 above.
6.6. Account of Self Help Group:
Self Help Group is an unregistered and primary society collecting contribution from the members on a periodical
basis. The following documents are required to be obtained while opening the account of Self Help group:
• Account opening Form to be signed by Authorized Signatory/ Signatories as per resolution
• Photograph and photo id proof of Authorized Signatory/ Signatories (any one from Table A under section 1)
• A copy of resolution passed by the members to open and operate the Bank Account (To be signed by all
members) OR Photo Copy of register where the resolution is passed and signed by all the members of SHG
• Introduction of SHG OR attestation of resolution from DRDA/ Government Officer/ Local Bodies (Municipal
Body or Gram Panchayat)
This is to be noted that all the accounts of SHG should be labeled as “SHG” in finacle at the time of opening of account.
6.7. FCRA Account:
FCRA accounts are the designated account of the entity to receive donations from foreign source as per FCRA Act,
1976. The entity is required to get registered with Ministry of Home Affairs, Central Govt. The requirement of
documents to open a FCRA account is as per the constitution of the entity (Trust/ Society or Section 25 Company). The
nomenclature of the account should invariably contain word “FCRA” e.g. XYZ-FCRA.
While opening such accounts, the debit and credit should be frozen. The Branch, after having received the permission
from Ministry of Home Affairs, Govt of India, should lift the freeze and allow operation in the account. Such accounts
should be labeled as “FCRA” in finacle while opening the account.
6.8. Account of Official Liquidator:
The liquidator of a company can open a Savings Bank account with the Bank with the purpose to receive the proceeds and
settle the claim. To open the account a copy of the certified copy of the court order (giving details of official liquidator) with
id and address proof of the official liquidator(s) (as per table A&B under section 1 above) should be obtained. Alternatively,
an introduction of the liquidator(s) should be obtained from a reputed lawyer known to the Bank. After opening of the
account the official liquidator should be asked to report the same to the court.
6.9. Account of Unregistered Trust/ Society:
Until registered, these bodies cannot be termed either as a society or a trust. The can open a Savings Bank account with
similar id and address proof of the authorized signatories and their photograph. A certified copy of resolution and the
deed/ bye laws (whatever the case may be) should be obtained. However, in such cases, a certificate from the Branch head
should be enclosed that he/she is thoroughly satisfied with such entity, its objective and credential of the office bearers.
Under no circumstances, account of such entities should be allowed to be overdrawn.
7. General Covenants: Accounts of Entity (Trust/ Society/ Section 25 Company/ Government):
7.1. In case the authorized signatory is existing customer of the Bank, KYC documents (id and address proof) may be
waived provided the customer-id is quoted in the Account Opening Form and a certification is provided from the
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Branch Official that the said customer is fully KYC compliant. Such certification should be provided by the Branch
where the customer-id is maintained and any officer of that Branch having signature number can sign this certification,
or send a lotus notes of this effect.
7.2. Under scheme code SBTRS, multiple accounts can be opened at various Branches with same customer id.
However, the authorized signatory/ signatories may change as per specific resolution provided by the Trust/ Society/
Section 25 Company. In such cases Account Opening Forms can be sent to CPU by the base Branch for the different
accounts to be set up in different Branches with same customer id. However, it will be required for the Base Branch to
obtain prior permission from Central Office, Retail Banking Department for such an arrangement.
7.3. For certain Government schemes, it will be possible to open a non-operative account in other than Base Branch
(where parent account is maintained) for collection purpose only. In such cases, Base Branch may have account of
certain Government Body, and based upon the requirement of the customer, the Base Branch will initiate to get various
collection accounts opened in various Branches. This can be facilitated only with the approval of Retail Banking
Department, Central Office. Such collection accounts can be set up in finacle through an approval of RBD, CO and
without any document or AOF, and with same customer-id of that of Base Branch. The said “non-operative collection
accounts” shall not have cheque book/ withdrawal facility. The debit entry in these accounts can be posted only by the
Base Branch.
7.4 Opening of inter-sol SBTRS account for collection purpose other wise (other than the conditions stipulated in section
7.3 above) shall be kept on to be governed by point no. 1.246 of Manual of Instructions – Retail banking, Vol. – 1:
Deposits
7.5. In case a Trust/ Society decide to open account in the name of unit whose name is different from the name of the
Society/ Trust, following additional documents should be obtained:
• An affidavit by the Trust/ Society stating that the said entity is owned and managed by the Trust/ Society and it is
nothing but the unit of said Trust/ Society
• Copy of resolution passed by the Trust/ Society, if any, to set up such unit (This is not mandatory, and a copy of
resolution should be taken if available)
• Copies of application form submitted to competent authority for obtaining permission to run such a unit and a
certified copy of such permission
• Copy of Trust Deed/ Bye Laws of the Trust/ Society
• KYC of Authorized Signatories, viz. id & address proof as per Table A&B under Section 1.
7.6. The provision of 7.5 above applies to the unit whose name does not contain the name of the Trust/ Society which
has launched them. In case the name of the unit contains the name of Trust/ Society, the account can be opened without
the specification enumerated in 7.5 above, and account can be opened with the documents required for respective
Trust/ Society.
7.7 In case of the educational institute and healthcare organizations (hospitals) which has a permission from any Valid
Govt. Dept. / UGC/State Board/Central Board/Other Authorized Board will be sufficient for opening account of the
Education Institute if the parent organization (i.e. Society/Trust) provides a resolution requesting the Bank to open the
account in the name of the Unit (i.e. Education Institute/Health Care Organization). For this, documentary proof has to
be obtained.
7.8 In case one of the authorized signatory/ trustee is illiterate, the account cannot be allowed to be operated singly.
However, the thumb impression can be accepted for that signatory along with other signatory/ signatories. However, in
such circumstances also, cheque book should not be issued and no third party cash withdrawal should be permitted.
7.9 In case of an Entity or a Association registered neither as a Trust or Society, it can be seen that the existing account
of the entity is a Savings Bank Account. If the existing Banking relationship of the entity, with a Nationalized Bank is
under Savings Bank account, a similar Savings Bank Account can be opened with Axis Bank as well. In such cases, it
has to be recognized that the entity exists. KYC documentation would be required to be obtained for the entity as well
as the authorized signatories under extant KYC. To ascertain the type of existing account, a copy of statement or
Passbook shall be sufficient.
7.10 As this segment requires a lot of interpretation for document requirement, the CPU shall invariably make a
reference to the product group (SBTRS) in Retail Banking, Central Office, whenever required. The clarification given by
Retail banking should be acceptable to open an account. Copies of the exchange of communication between CPU and
Retail Banking are to be endorsed to Compliance Department for reference. In case, the issue raised is perceived as a
matter of policy, the Retail Banking Department will refer the same to Compliance Department. The clarification of
Compliance Department shall be final and create a line of reference for all future cases with similar issue.
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Documents for certain types of current accounts:
1. TRUST: Definition
The entities which may be known by names like Trust, foundation, Clubs, Association, NGO, etc but are formed as Trust,
based on a trust Deed under Indian Trust Act 1882 or relevant states like (Bombay Public Trust Act, 1950).
“Trust” is required to be registered to open an account. A clarification regarding their registration is given below:
Public Trust: (The beneficiary of the Trust is Public at large): A copy of registration and certificate from Charity
Commissioner or Certificate of tax exemption from Income Tax department to be obtained. At places where Charity
Commissioner does not exist, a copy of the trust deed, registered at the office of the Sub – Registrar of Assurances would be
required. In such cases, registration remains as endorsement of the Trust Deed on the face / back of the Trust Deed itself,
with the registration / serial number, date, etc., mentioned and document stamped by the Registering Office.
Private Trust : In certain states, where separate Trust Act does not exist, Trust is formed under the Indian Trust Act and the
registration is done by the Sub – Registrar of Assurances by endorsing the Trust Deed on the face / back of the Trust Deed
itself, with the registration / serial number, date, etc., mentioned and document stamped by the registering office.
Will: A Trust account can be opened on the basis of a Will. However, a copy of the probate certified by the court should be
attached with the will. Such will can replace “Registered Trust Deed” for the purpose of opening of account and the
executors and administrators appointed by the court would be the authorised signatory of the account, whose identity &
address proof to be obtained are as applicable to the proprietor, prescribed by us under existing guidelines.
2, SOCIETY: Definition
The entities which may be known by names like Trust, foundation, Clubs, Association, NGO, etc but are registered as
Societies and registered under the Societies Registration Act, 1860 or any other corresponding law in force in state or a
Union Territory.
List of documents required (Trust / Society):
Copy of PAN Card/ PAN Intimation Letter/ Completed Form No 60.
Proof of Identity of Trust / Society:
Certificate of registration as applicable, depending on the nature of trust i.e., public/private/will etc.
Certified true copy of Trust deed / Bye Laws / Will. In case Trust deed is in vernacular language, a self-attested English
version copy needs to be submitted. Alternatively, a translation of the relevant portion of the Trust Deed / Bye Laws by the
Branch Staff with signature number is required to be attached.
Resolution of the Managing Body of the Trust / Foundation / Association of the individual(s) for opening and operating the
account as per Bank’s format (inbuilt in the account opening form.
List of all current Trustees & Settlors in the Letter Head of the Trust containing Photo, Name and Addresses.
Address proof of the Trust / Society: (any one of the following)
A copy of the registration certificate / certificate of registration with Sub Registrars Office/ Income Tax Exemption
Certificate.
Address available in Registered Trust Deed acceptable.
Telephone / Electricity Bill of public sector operators in the State (Bills not older than 3 months)
Property ownership deed i.e. Title deeds of the property in the name of the Trust duly stamped and registered.
TAN allotment letter.
Property tax or water tax paid receipt / bill raised in the name of the Trust.
Bank Statement (not more than 3 months old) mentioning the name & address of the Trust from PSU / Private Sector /
Foreign banks.
PAN Intimation Letter issued by IT authority.
Last available Income Tax Assessment Order.
Latest Wealth Tax Assessment Order.
Certificate issued by village Administrative Officer / Panchayat Head / Mukhiya / Village Developmental officer / Block
development officer or Equal Rank officer for customers in rural / village areas.
Proof of identity & address of authorised signatories:
ID & address proof of all authorised signatories to be obtained as applicable to the proprietor, prescribed under existing
guidelines.
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Note: In case of the educational institute and healthcare organizations (hospitals) a permission from any valid Govt. Dept./
UGC/ State Board/ Central Board/ Other Authorized Board will be sufficient for opening their account if the parent
organization (i.e. Society/Trust) provides a resolution requesting the Bank to open the account in the name of the Unit (i.e.
Education Institute/Health Care Organization). For this, documentary proof has to be obtained.
3. State / Urban / District Central Co-operative / Regional Rural Bank / Local Area Bank
List of documents required (Bank):
Copy of PAN Card/ PAN Intimation Letter
Proof of Identity of Bank:
RBI License for UCB’s / Inspection Letter of NABARD for State Apex or DCCB’s.
Certified “True and Updated” copy of rules & by-laws of the Bank signed by any director.
For RRB, a copy of Gazette Notification attested by Director / Secretary / Chairman / Chairperson / Two Authorised
signatories.
For Local Area Bank letter issued by the sponsored Bank.
Duly signed Board Resolution (format inbuilt with the AOF) for opening and operating the account.
List of all Directors with their addresses attested by directors / company secretary / chairman / Chairperson or minimum
two authorised signatories.
Proof of address of the Bank: (any one of the following)
Address duly incorporated in Board Resolution
Copy of registration under Shop & Establishment Act having address
RBI License for UCB’s / Inspection Letter of NABARD for State Apex or DCCB’s.
Proof of identity & address of authorised signatories:
ID & address proof of all authorised signatories to be obtained as applicable to the proprietor, prescribed under existing
guidelines.
4. Hindu Undivided Family (HUF)
List of documents required (HUF):
Copy of PAN Card/ PAN Intimation Letter/ Completed Form No 60.
Proof of identity of HUF
HUF letter with the name and signature of all adult male & female co-parceners.
Copy of PAN Card/ PAN Intimation Letter
The letter of mandate of HUF
Proof of identity & address of Karta
ID & address proof of all authorised signatories to be obtained as applicable to the proprietor, prescribed under existing
guidelines.
5. Association of Persons (AOP) or Body of Individuals (BOI)
List of documents required:
PAN card copy / PAN intimation Letter / Completed Form No. 60.
Proof of identity of AOP/BOI
PAN card copy / PAN intimation Letter
Copy of agreement.
Copy of Certificate of Registration issued by Charity Commissioner .
Registrar of Co-operative Society or any other competent authority.
Any other document originating from any Central or State Government. Department establishing identity and address of
such AOP / BOI.
Resolution of the managing body of such association or body of individuals authorising one or more members to operate
the account.
Proof of Address of AOP/BOI: (any one document required)
Copy of agreement.
Copy of Certificate of Registration issued by Charity Commissioner .
Registrar of Co-operative Society or any other competent authority.
Any other document originating from any Central or State Government. Department establishing identity and address of
such AOP / BOI.
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Resolution of the managing body of such association or body of individuals authorising one or more members to operate
the account.
Proof of identity & address of authorised signatories / POA holder
ID & address proof of authorised signatories/POA holder to be obtained as applicable to the proprietor, prescribed under
existing guidelines.
6. Accounts of Limited Liability Partnership( LLP ):
Concept of “limited liability partnership”
LLP is an alternative corporate business form that gives the benefits of limited liability of a company and the flexibility of a
partnership.
The LLP can continue its existence irrespective of changes in partners. It is capable of entering into contracts and holding
property in its own name.
The LLP, a separate legal entity, is liable to the full extent of its assets but liability of the partners is limited to their agreed
contribution in the LLP.
Further, no partner is liable on account of the independent or un-authorized actions of other partners, thus individual
partners are shielded from joint liability created by another partner’s wrongful business decisions or misconduct.
Mutual rights and duties of the partners within a LLP are governed by an agreement between the partners or between the
partners and the LLP as the case may be. The LLP, however, is not relieved of the liability for its other obligations as a
separate entity.
Since LLP contains elements of both ‘a corporate structure’ as well as ‘a partnership firm structure’ LLP is called a hybrid
between a company and a partnership.
Structure of an LLP:
LLP shall be a body corporate and a legal entity separate from its partners. It will have perpetual succession.
Difference between LLP & “Traditional Partnership Firm”:
Under “Traditional Partnership Firm”, every partner is liable, jointly with all the other partners and also severally for all
acts of the firm done while he is a partner.
Under LLP structure, liability of the partner is limited to his agreed contribution. Further, no partner is liable on
account of the independent or un-authorized acts of other partners, thus allowing individual partners to be shielded
from joint liability created by another partner’s wrongful acts or misconduct.
Difference between LLP & a Company
A basic difference between an LLP and a joint stock company lies in that the internal governance structure of a company
is regulated by statute (i.e. Companies Act, 1956) whereas for an LLP it would be by a contractual agreement between
partners.
The management-ownership divide inherent in a company is not there in a limited liability partnership.
LLP will have more flexibility as compared to a company.
List of documents required:
In addition to document for partnership firm mentioned under existing guidelines following documents need to be
obtained from the customer for opening account of LLPs:
Certificate of Incorporation as a LLP.
The registered agreement between the partners.
7. Account of Official Liquidator for settlement of claims
List of documents required:
Certified copy of the Court Order appointing the official liquidator.
Letter from the registrar of Co –Operative Societies in case of a Co-Operative Bank going into Liquidation.
Registration of companies in case of a company going into Liquidation.
ID & address proof of official liquidator to be obtained as applicable to the proprietor, prescribed under existing guidelines.
8. Foreign Companies
A foreign company planning to set up business operations in India may do so in the following manner:
(i) As an entity incorporated under the Companies Act, 1956 through
Joint Ventures; or
Wholly Owned Subsidiaries
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The documents required for opening of these accounts are the same as applicable to any other companies prescribed in our
earlier guidelines.
(ii) As an office of a foreign entity through
Liaison office / Representative office
Branch office
Project office
Liaison Office / Representative Office: A Liaison office can carry on only liaison activities, i.e. it can act as a channel of
communication between Head Office abroad and parties in India. It is not allowed to undertake any business activity in
India and cannot earn any income in India. Expenses of such offices are to be met entirely through inward remittances of
foreign exchange from the Head Office abroad. The role of such offices is, therefore, limited to collecting information about
possible market opportunities and providing information about the company and its products to the prospective Indian
customers.
The companies desirous of opening a liaison office in India may make an application in form FNC-1 along with the
documents mentioned therein to Foreign Investment Division, Foreign Exchange Department, Reserve Bank of India,
Central Office, Mumbai.
Permission to set up such offices is initially granted for a period of 3 years and this may be extended from time to time by
the Regional Office in whose jurisdiction the office is set up. Liaison/Representative offices have to file an Activity
Certificate on annual basis from a Chartered Accountant to the concerned Regional Office of the Reserve Bank of India,
stating that the Liaison Office has undertaken only those activities permitted by Reserve Bank of India.
List of documents required:
Copy of PAN card / PAN intimation Letter /Completed Form No. 60
Proof of Identity of Liaison Office / Representative Office:
Certified true copy of Certificate of Incorporation.
Certified true copy of Memorandum & Article of Association.
List of Directors and copy of Form 32 (If Directors different from MOA)
Certified true copy of board resolution with authorised officials name
PAN Card/TAN allotment letter/GIR No.
Certified true copy of Certificate of Commencement of business (Public Limited Company).
RBI Permission letter for setting up office in India.
Proof of address of Liaison Office / Representative Office:
Address proof of the company as applicable to Private & Public limited companies, prescribed under existing guidelines
Proof of Identity & address of authorised signatories:
ID & address proof of all authorised signatories to be obtained as applicable to the proprietor, prescribed under existing
guidelines.
Branch Office: Reserve Bank permits companies engaged in manufacturing and trading activities abroad to set up Branch
Offices in India for the following purposes:
To represent the parent company/other foreign companies in various matters in India e.g. acting as buying/selling agents in
India
To conduct research work in the area in which the parent company is engaged
To undertake export and import activities and trading on wholesale basis
To promote possible technical and financial collaborations between the Indian companies and overseas companies.
Rendering professional or consultancy services
Rendering services in Information technology and development of software in India
Rendering technical support to the products supplied by the parent/Group companies.
A branch office is not allowed to carry out manufacturing, processing activities directly/indirectly. A Branch Office is also
not allowed to undertake Retail Trading activities of any nature in India. Branch Offices have to submit Activity Certificate
from a Chartered Accountant on an annual basis to the Central Office of FED. For annual remittance of profit Branch Office
may submit required documents to an authorised dealer.
Permission for setting up branch offices is granted by the Reserve Bank of India. Reserve Bank of India considers the track
record of the Applicant Company, existing trade relations with India, the activity of the company proposing to set up office
in India as well as the financial position of the company while scrutinising the application.
List of documents required:
Copy of PAN card / PAN intimation Letter /Completed Form No. 60
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Proof of Identity of Branch Office:
Certified true copy of Certificate of Incorporation.
Certified true copy of Memorandum & Article of Association.
List of Directors and copy of Form 32 (If Directors different from MOA)
Certified true copy of board resolution with authorised officials name
PAN Card/TAN allotment letter/GIR No.
Certified true copy of Certificate of Commencement of business (Public Limited Company).
RBI Permission letter for setting up office in India.
Proof of address of Branch Office:
Address proof of the company as applicable to Private & Public limited companies, prescribed under existing guidelines
Proof of Identity & address of authorised signatories:
ID & address proof of all authorised signatories to be obtained as applicable to the proprietor, prescribed under existing
guidelines.
Project Office: Foreign companies are granted projects in India by Indian entities. General Permission has been granted by
Reserve Bank of India vide Notification No. FEMA 95/2003-RB dated July 2, 2003 to foreign companies to open Project
Office/s in India provided they have secured from an Indian company, a contract to execute a project in India, and
the project is funded directly by inward remittance from abroad; or
the project is funded by a bilateral or multilateral International Financing Agency; or
the project has been cleared by an appropriate authority; or
a company or entity in India awarding the contract has been granted Term Loan by a Public Financial Institution or a bank
in India for the project.
However, if the above criterion is not met, or if the parent entity is established in Pakistan, Bangladesh, Sri Lanka,
Afghanistan, Iran or China, such applications have to be forwarded to Central Office of the Foreign Exchange Department
of the Reserve Bank at Mumbai for approval.
List of documents required:
Copy of PAN card / PAN intimation Letter /Completed Form No. 60
Proof of Identity of Project Office:
Certified true copy of Certificate of Incorporation.
Certified true copy of Memorandum & Article of Association.
List of Directors and copy of Form 32 (If Directors different from MOA)
Certified true copy of board resolution with authorised officials name
PAN Card/TAN allotment letter/GIR No.
Certified true copy of Certificate of Commencement of business (Public Limited Company).
RBI Permission letter for setting up office in India.
Copy of contract/sanction letter by the Project Sanctioning Authority in India.
RBI approval in case if the parent entity is established in Pakistan, Bangladesh, Sri Lanka, Afghanistan, Iran or China.
Clearance from Appropriate Government Authorities in India (if applicable).
Proof of address of Project Office:
Address proof of the company as applicable to Private & Public limited companies, prescribed under existing guidelines
Proof of Identity & address of authorised signatories:
ID & address proof of all authorised signatories to be obtained as applicable to the proprietor, prescribed under existing
guidelines.
Branches – The forefront
of Retail Banking Activity
In our bank the accounts of the
customers are not opened and
maintained at branches. The
applications are received,
scrutinized and then forwarded to
Central Processing Unit (CPU)
and the accounts are opened at
CPU. The centralized data base
can be accessed by all the branches
throughout the country. Since the
branches extend services out of
the centralized data base, they are
known as Service Outlet (SOL).
ISA Check
� ISA means Identity, Signature and
Address. ISA check implies physical
verification of these three features,
using List A and List B above.
� Or using a copy of the passport, and
self-signed cheque from the existing
bank account of the customer.
Account Opening Ready Reckoner
� Receive Completed AOF from
customer
� Scrutinize the form
� Verify the documents against the
original & sign
� Hand over the AOF no. to the customer
� Enter the AOF details in the system
� Dispatch the forms at the end of the
day, to CPU
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AC C O U N T D E T A I L S
In our bank, when an account is opened, the account holder becomes a client of the bank. A client ID Number is allotted to
him. A client can open many account at different branches. Each and every account is identified by an account number.
Customer ID is a unique number allotted to each customer. Now, it’s possible that a single customer has two or more
accounts. For example, say a customer by name Mr. Rajan has his salary account with our bank. He may want to open
another account jointly with his wife. Each account is identified by a unique Account No. and all the accounts of Mr. Rajan
are linked to a single Customer ID. Let’s look more closely at the account no.
Bank Code
A/c opening Yr.
Account Type
Account No.
Check Digit
9 09 01 123456789 5
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Anti Money Laundering (AML) and Know Your Customer (KYC) Guidelines
IN T R O D U C T I O N T O AML A N D KYC Money laundering is the process where the money earned from criminal activities such as drugs trafficking; smuggling and
terrorism are converted into legitimate money through a series of financial transactions making it impossible to trace back
the origin of funds. Criminals are thus able to hide and disguise the true origin and ownership their earnings and avoid
prosecution, conviction and confiscation of the tainted funds. Of late this has become a serious issue in the international
community because of the increasing use of such funds to finance terrorism.
Recent technological advancements have facilitated on-line transfer of funds and real time settlement between banks across
the globe. Money launderers are now able to adopt innovative means and move funds faster across continents making
detection and preventive action much more difficult.
Because of this threat, banks have to adopt a dynamic approach in tracking fund movement and increase their vigilance and
monitoring of their customers. The Basel Statement of Principles enunciated in 1989 outlines the basic procedures and
policies which banks must adopt to assist law enforcement agencies in tackling this menace. A Financial Action Task Force
(FATF) comprising 26 countries and two regional organisations was formed in 1989 (currently 35 members of the FATF; 33
jurisdictions and 2 regional organisations (the Gulf Cooperation Council and the European Commission) and the
recommendations made periodically by the Task Force have formed the guiding principles for comprehensive legislation on
anti-money laundering and systems and procedures adopted by the banking system. In line with these happenings across
the globe, a comprehensive bill on the Prevention of Money Laundering was introduced in the Indian Parliament in 1998
and the Prevention of Money Laundering Act, 2003 has been passed by the Parliament.
WH O I S A CU S T O M E R ? RBI defines customer as:
� One who maintains an account with the bank, or
� Any person or entity connected with a financial transaction like a remittance:
� The remitter or purchaser of an outward remittance
� The beneficiary of an inward remittance
Necessary prior checks should be carried out for checking of a prospective customer’s identity against persons of known
criminal background or banned entities. Since this can only be ensured fully by installing suitable software, it has been
decided to introduce these prior checks after the software has been identified and installed. Detailed guidelines will be
issued after implementation of the software. Meanwhile, Branches and Extension Counters should carefully peruse the
lists of such persons/entities circulated by us from time to time through the Zonal Offices and crosscheck prospective
customers’ particulars with such lists.
The accounts of Politically Exposed Persons resident outside India will need to be opened after a strict verification of all
relevant aspects. Politically Exposed Persons are individuals who are or have been entrusted with prominent public
functions in a foreign country, e.g., Heads of States or of Governments, senior politicians, senior
government/judicial/military officers, senior executives of state-owned corporations, important political party officials etc. It
has been decided that all such accounts should be opened only after clearance from the NRI Department, Central Office.
Whenever any remitter wishes to deposit more than Rs. 20,000/- in cash for purchasing a draft or for making a remittance in
any other form, documents constituting identity proof of the remitter as per List A must be scrutinized and copies thereof
retained with the Application Form (the voucher).
KN O W Y O U R C U S T O M E R KYC essentially involves identifying the customer and verifying his/her identity by using reliable, independent source
documents, data or information. Special attention will have to be given to due diligence for accounts of trusts, companies
and client accounts opened by professional intermediaries. In the case of trusts, branches should take reasonable
precautions to verify the identity of the trustees and the settlers of the trust. Beneficiaries should also be identified when
they are defined. For companies, branches need to be vigilant against business entities being used by individuals as a ‘front’
for maintaining accounts with banks. As regards client accounts, when the Bank has knowledge or reason to believe that the
client account opened by a professional intermediary is on behalf of a single client, that client must be identified as per our
procedure.
These guidelines are so important, that even an existing account may have to be closed due to the Bank’s inability to verify
the customer’s identity, although only Branch Heads will have the authority to take such a decision. The aim of these
guidelines is to:
� Determine and document the true identity and basic background of all customers
� Obtain and document any additional customer information, commensurate with assessment of the money laundering
risk posed by customers' expected use of the Bank's products and services;
� Minimise frauds
� Avoid opening of accounts with fictitious names and addresses
� Check misappropriations
� Prevent money laundering
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� Obtain protection under Section 131 of Negotiable Instruments Act
� Weed out undesirable customers
AC C O U N T PR O F I L I N G RBI has stipulated categorization of customers into low, medium and high-risk categories. It has been decided to do so
based on anticipated transactions volume in each account.
This would help the Bank to classify the accounts into different risk categories for the purpose of activity/transaction
monitoring. The cut off limits for monitoring could be specified depending upon the risk profile. The profile would need to
be updated from time to time. As money laundering is a process essentially involving a series of transactions, it has been
considered appropriate to compile the profile in the case of only Savings Bank and Current Accounts rather than Term
Deposits. It will also not be necessary to extend the procedure to asset accounts.
Account Profile Additional data which is collected in the AOF such as annual income, age, occupation etc., in case of individuals and details
of the type and extent of the business in case of current account is used to develop what is known as an “Account Profile”.
Such a profile gives us an idea of the type of transactions /activities expected to pass through the account, which would
eventually help us identify any suspicious transaction not commensurate with the customer profile. Although this
information is completely voluntary3, it is invaluable for monitoring the activities in the accounts, as also aid risk perception
from the money laundering point of view. The risk factor would determine the nature and extent of monitoring required.
Transaction Profile Just as we try to draw up an account profile, constant monitoring of the accounts helps us draw up a Transaction Profile.
This is again done so that we are able to spot quickly if there is any unusual activity in the account.
� Does the customer deal in large cash transactions? If so, what is the nature of such transactions?
� Do we have any other agreement with the client for fund transfers? If so, what are the arrangements?
� Details of loan facilities enjoyed by the customer from the bank.
� Do we have regular contact with the customers? If so, by what means e.g. personal visits, telephone calls, e-mail etc?
Who are the persons generally contacted by us?
Have exchange control formalities been completed for foreign citizens, companies etc
M O N I T O R I N G O F TR A N S A C T I O N S The extent of monitoring should depend on the risk sensitivity of the account. A list of clearing credit transactions for Rs.
50,000/- and above in the newly opened accounts is being sent by Data Centre on a daily basis. Branches should scrutinize the
transactions.
Any transaction exceeding the threshold limit of 10 lacs should be monitored to see if it conforms to the profile. If not,
details may be sought to establish the nature of transaction. Apart from such transactions which cross the threshold limit,
certain other activates may give rise to suspicion of money laundering. An indicative list of such suspicious activities is
given in the next page. However, it needs to be ensured that, in our zeal to monitor such activities, genuine and bonafide
transactions of customers are not delayed and customers inconvenienced. Further, any enquiries made in such matters must
take care of the sensitivity of the customers involved and must be handled at a sufficiently senior level with delicacy and
tact.
Apart from following the procedures relating to remittances as laid down in the FEMA guidelines, the branches while
dealing with overseas fund transfers, both inwards and outwards, will have to be vigilant in ascertaining, wherever
possible, the purpose of remittances, particulars of the remitter as well as the beneficiaries, and link such remittances to the
customer profile on record. It may be necessary to scrutinise transactions more closely if the pattern of remittances arouses
suspicion. However, care will have to be taken not to delay crediting the proceeds of the remittances solely for lack of
particulars of the above nature. Here again, the matter should be handled with appropriate tact.
To monitor overall activities in the context of the Anti-Money Laundering Policy, the Vice President (Operations) at this
office has been nominated as Money Laundering Reporting Officer (MLRO) for the Bank, who would be responsible for
reporting transactions of a suspicious nature to the Senior Management of the Bank as well as various regulatory
authorities. Branches would also report to the MLRO any suspicious activities noticed by them.
Indicative list of suspicious activities
Activities not consistent with the customer's business
� Corporate accounts where deposits or withdrawals are primarily in cash rather than cheques.
� Corporate accounts where deposits and withdrawals by cheque/telegraphic transfers/foreign inward
remittances/ any other means are received from/ made to sources apparently unconnected with the corporate
business activity/dealings.
3 This means that the customer MAY disclose these details in the AOF as per his/her wish. The bank cannot enforce such disclosures and make
them mandatory for account opening.
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� Unusual applications for DD/TT/PO against cash.
� Accounts with large volume of credits through DD/TT/PO whereas the nature of business does not justify
such credits.
� A single substantial cash deposit composed of many high denomination notes.
� Frequent exchanges of small denomination notes for large denomination notes or vice versa.
� Deposit of many cheques but rare withdrawals for daily operations.
Attempts to avoid reporting/record-keeping requirements
� A customer who is reluctant to provide information needed for a mandatory report, to have the report filed
or to proceed with a transaction after being informed that the report must be filed.
� Any individual or group that coerces/induces or attempts to coerce/induce a bank employee to not file any
report or any other forms.
� An account where there are several cash deposits/withdrawals below a specified threshold level to avoid
filing of reports that may be necessary in case of transactions above the threshold level, as the customer
intentionally splits the transaction into smaller amounts for the purpose of avoiding the threshold limits.
Unusual Activities
� A customer who often visits the safe deposit area immediately before making cash deposits - especially
deposits just under the threshold level.
� An account that has frequent deposits of large amounts of currency bearing the labels of other banks.
� Funds coming from the list of countries/centres which are known for money laundering
Customer who provides insufficient or suspicious information
� A customer/company who is reluctant to provide complete information regarding the purpose of the
business, prior banking relationships, officers or directors, or its locations. In this case account need not be
opened.
� A customer/company who is reluctant to reveal details about its activities or to provide financial statements.
� A customer who has no record of past or present employment but makes frequent large transactions.
Certain suspicious funds transfer activities
� Sending or receiving frequent or large volumes of cross border remittances not supported by business
reasons.
Receiving large TT/DD remittances from various centres and remitting the consolidated amount to a different
account/centre on the same day leaving minimum balance in the account
Certain bank employees arousing suspicion
� An employee whose lavish lifestyle cannot be supported by his or her salary.
� An employee who is reluctant to take a vacation.
� An employee who is associated with mysterious disappearances or unexplained shortages of significant
amounts of bank funds.
� An employee in whose case negligence/wilful blindness is reported repeatedly
Checklist for handling overseas money transfers � A customer maintains multiple accounts, transfers money among the accounts and uses one account as a master
account from which wire/funds transfer originates or into which wire/funds transfers are received (a customer deposits
funds in several accounts, usually in accounts below a specified threshold and the funds are then consolidated into one
master account and wired outside the country)
� A customer regularly depositing or withdrawing large amounts by a wire transfer to, from, or through countries that
are known sources of narcotics or where bank secrecy laws facilitate laundering money.
� A customer sends and receives wire transfers (from financial haven countries) particularly if there is no apparent
business reason for such transfers and it is not consistent with the customer's business or history.
� A customer receiving many small incoming wire transfers of funds or deposits of cheques and money orders and then
ordering large outgoing wire transfers to another city or country.
� Customer experiences increased remittance activity when previously there has been no such regular activity.
� Loan proceeds unexpectedly are wired or mailed to an offshore bank or third party.
� A business customer uses or evidences a sudden increase in wire transfer to send and receive large amounts of money,
internationally and/or domestically and such transfers are not consistent with the customer's history.
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� Deposits of currency or monetary instruments into the account of a domestic trade or business, which in turn are
quickly wire transferred abroad or moved among other accounts for no particular business purpose.
� Sending or receiving frequent or large volumes of wire transfer to and from offshore institutions.
� Instructing the Bank to transfer funds abroad and to expect an equal incoming wire transfer from other sources.
� Receiving wire transfers and immediately purchasing monetary instruments prepared for prepayment to a third party.
� Periodic wire transfers from a person's account/s to bank haven countries.
� A customer pays for a large (international or domestic) wire transfer using multiple monetary instruments drawn on
several financial institutions.
� A customer or a non-customer receives incoming or makes outgoing wire transfers involving currency amounts just
below a specified threshold, or that involves numerous Bank or travellers cheques
� A customer or a non-customer receives incoming wire transfers from the bank to 'Pay upon proper identification' or to
convert the funds to bankers' cheques and mail them to customer or non-customer, when
� The amount is very large (say over Rs 10 lacs)
� The amount is just under the specified threshold
� The funds come from a foreign country or
� Such transactions occur repeatedly
� A customer or a non-customer arranges large wire transfers out of the country which are paid for by multiple bankers'
cheques (just under the specific threshold)
� A non-customer sends numerous wire transfers using currency amounts just below the specified threshold limits
R I S K M A N A G E M E N T The concurrent / internal auditors specifically check and verify the application of KYC procedures at the branches and
comment on the lapses. To assist them in their work, the AIMS (Account Irregularity Monitoring System) software has been
implemented at the CPU, which will indicate the up-to-date state of KYC compliance in respect of each new account
opened. The branches should make adequate efforts to rectify the irregularities pointed out by the CPU auditors as soon as
possible.
Monitoring of Compliance of the Account Opening Procedure In our bank the following measures have been put in place to ensure compliance of the account opening procedure on an
on-going basis.
� Day end checking at branch level
� Concurrent audit at the CPU
� System audit at new branches
� Snap audit
� Concurrent audit of bigger branches
� Verification by controlling officials during visits to
branches
� Periodical inspection of branches by internal /
external auditors
For more information and detailed guidelines/procedures on opening of different types of accounts, introduction, conduct
of accounts, disclosures, monitoring of large cash withdrawals and deposits, obtaining of photographs etc., one may refer to
the manual of instructions.
P R E C A U T I O N S F O R O P E N I N G A N D CO N D U C T O F A C C O U N T S 4 Recently, certain instances have come to our notice where accounts have been opened at some of our branches by
miscreants to obtain unlawful payment of the following types of instruments:-
� Those issued in favour of genuine persons but illegally obtained by persons claiming to be the original payees.
� Those which have been stolen from the issuing bank and put to misuse.
� Those whose material details like payee’s name, account details, amount etc. have been altered.
In most of these cases, our branches have performed the role of collecting bankers and the relative instruments have either
been paid in some instances or dishonoured in others due to vigilant and timely detection by the paying banks. As such, we
have not been out of funds in these cases. However, branches need to be fully aware that our protection as a collecting bank
would be available under the Negotiable Instruments Act only if it can be conclusively established that the relative accounts
have been opened by our branches after rigorously following the procedures laid down for opening of accounts, including
observance of the Know Your Customer (KYC) norms aimed at establishing the identity and other particulars of the account
holder. It is, therefore, of utmost importance that the various guidelines laid down in this regard, consolidated in our
Circular No. OPERATIONS/65/2003-04 dated August 12, 2003, are followed meticulously in letter and spirit.
In addition to these guidelines, it has been decided to lay down the following safeguards in the matter:-
� The scrutiny of the account opening forms should be done by an official at least of the level of Manager before being
sent to CPU.
� The local courier agency should be instructed to return any deliverable to the branch immediately, if the address is not
traceable, with a proper remark to that effect. Under no circumstances should the couriers deliver such consignments to
any one claiming to be the consignee.
� Delivery of the Debit Cards, PINs etc to third parties against authority letters should be done only with the approval of
4 Extract from our Circular No: OPERATIONS/86/2003-04 Date : November 27, 200
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SWAGAT 2010-11 BANKING AWARENESS TRAINING PROGRAMME
the Branch Head/Manager (Operations), duly recorded on the letter to that effect.
� The officials at the branches should be exhorted to be discreet while passing on information on telephone or otherwise,
making sure that the concerned person inquiring is the account holder and not a third party.
� Branches while collecting high value instruments of say Rs. 50,000/- and above on behalf of other branches should
check the relative account in Finacle, particularly in regard to the date of opening, before crediting the proceeds.
� Having opened the accounts with due precaution, it is also necessary that all vouchers, cheques, drafts, dividend
warrants etc. presented for payment or collection are verified thoroughly before authorisation is given. In a couple of
cases recently it was possible to detect the alterations made in a dividend warrant and a cheque due to such scrutiny
before payment was made by our branches. All officials should, therefore, be made aware of the paramount importance
of a proper scrutiny of instruments passing through their hands.
EX T R A C T F R O M RBI C I R C U L A R F O R IN F O R M A T I O N 5
Prevention of Money Laundering Act, 2002 – Obligation of banks in terms of Rules
notified thereunder Please refer to our circular DBOD.No.AML.BC.58/14.01.001/ 2004-05 dated November 29, 2004 on KYC Guidelines and Anti
Money Laundering Standards. Banks were advised to put in place a policy framework within three months of the date of
the circular and ensure that the banks were fully compliant with the provisions of the circular by December 31, 2005. The
Chairmen/CEOs of banks were advised to personally monitor the progress in this regard and take appropriate steps to
ensure that systems and procedures were put in place and instructions had percolated to the operational levels. It should
also be ensured that there is a proper system of fixing accountability for serious lapses and intentional circumvention of the
prescribed procedures and guidelines.
Attention of banks is further invited to paragraphs 4 and 10 of the guidelines enclosed to our above said circular in terms of
which banks were advised to appoint a Principal officer and put in place a system of internal reporting of suspicious
transactions and cash transactions of Rs.10 lakh and above. In this connection, we advise that the Government of India,
Ministry of Finance, Department of Revenue, issued a notification dated July 1, 2005 in the Gazette of India, notifying the
Rules under the Prevention of Money Laundering Act (PMLA), 2002. In terms of the Rules, the provisions of PMLA, 2002
came into effect form July 1, 2005. Section 12 of the PMLA, 2002 casts certain obligations on the banking companies in
regard to preservation and reporting of customer account information. Banks are, therefore, advised to go through the
provisions of PMLA, 2002 and the Rules notified there under and take all steps considered necessary to ensure compliance
with the requirements of section 12 of the Act ibid.
Maintenance of records of transactions
Banks should introduce a system of maintaining proper record of transactions prescribed under Rule 3, as mentioned
below:
� All cash transactions of the value of more than rupees ten lakh or its equivalent in foreign currency;
� All series of cash transactions integrally connected to each other which have been valued below rupees ten lakh or its
equivalent in foreign currency where such series of transactions have taken place within a month and the aggregate
value of such transactions exceeds rupees ten lakh;
� All cash transactions where forged or counterfeit currency notes or bank notes have been used as genuine and where
any forgery of a valuable security has taken place;
� All suspicious transactions whether or not made in cash and by way of as mentioned in the Rules.
Information to be preserved
Banks are required to maintain the following information in respect of transactions referred to in Rule 3:
� The nature of the transactions;
� The amount of the transaction and the currency in which it was denominated;
� The date on which the transaction was conducted; and
� The parties to the transaction.
Maintenance and Preservation of records
Banks should take appropriate steps to evolve a system for proper maintenance and preservation of account information in
a manner that allows data to be retrieved easily and quickly whenever required or when requested by the competent
authorities. Further, banks should maintain for at least ten years from the date of cessation of transaction between the bank
and the client, all necessary records of transactions, both domestic or international, which will permit reconstruction of
individual transactions (including the amounts and types of currency involved if any) so as to provide, if necessary,
evidence for prosecution of persons involved in criminal activity.
6th Floor, Hotel Samrat, Chanakyapuri, New Delhi-110021
I) Banks should carefully go through all the reporting formats. There are altogether five reporting formats viz. i) Manual
reporting of cash transactions ii) Manual reporting of suspicious transactions iii) Consolidated reporting of cash transactions
by Principal Officer of the bank iv) Electronic data structure for cash transaction reporting and v) Electronic data structure
for suspicious transaction reporting which are enclosed to this circular. The reporting formats contain detailed guidelines on
the compilation and manner/procedure of submission of the reports to FIU-IND. It would be necessary for banks to initiate
urgent steps to ensure electronic filing of cash transaction report (CTR) as early as possible. The related hardware and
technical requirement for preparing reports in an electronic format, the related data files and data structures thereof are
furnished in the instructions part of the concerned formats. However, banks which are not in a position to immediately file
electronic reports may file manual reports to FIU-IND. While detailed instructions for filing all types of reports are given in
the instructions part of the related formats, banks should scrupulously adhere to the following:
� The cash transaction report (CTR) for each month should be submitted to FIU-IND by 15th of the succeeding month.
While filing CTR, individual transactions below rupees fifty thousand may not be included;
� The Suspicious Transaction Report (STR) should be furnished within 7 days of arriving at a conclusion that any
transaction, whether cash or non-cash, or a series of transactions integrally connected are of suspicious nature. The
Principal Officer should record his reasons for treating any transaction or a series of transactions as suspicious. It
should be ensured that there is no undue delay in arriving at such a conclusion once a suspicious transaction report is
received from a branch or any other office. Such report should be made available to the competent authorities on
request;
� The Principal Officer will be responsible for timely submission of CTR and STR to FIU-IND;
� Utmost confidentiality should be maintained in filing of CTR and STR to FIU-IND. The reports may be transmitted by
speed/registered post, fax, email at the notified address;
� It should be ensured that the reports for all the branches are filed in one mode i.e. electronic or manual;
� A summary of cash transaction report for the bank as a whole may be compiled by the Principal Officer of the bank in
physical form as per the format specified. The summary should be signed by the Principal Officer and submitted both
for manual and electronic reporting.
Banks may not put any restrictions on operations in the accounts where an STR has been made. However, it should be
ensured that there is no tipping off to the customer at any level.
These instructions are issued under Section 35A of the Banking Regulation Act, 1949 and Rule 7 of Prevention of Money-
laundering (Maintenance of Records of the Nature and Value of Transactions, the Procedure and Manner of Maintaining
and Time for Furnishing Information and Verification and Maintenance of Records of the Identity of the Clients of the
Banking Companies, Financial Institutions and Intermediaries) Rules, 2005. Any contravention thereof or non-compliance
shall attract penalties.
C A S H TR A N S A C T I O N GU I D E L I N E S � Savings/Current Accounts: There is no restriction for the amount. If the total amount deposited by way of cash in an
account in a day is Rs.50000 and above, PAN of the account holder/s should be obtained if not taken on record at the
time of opening the account. In case, the account holder/s does not have the PAN, then form 60/61 should be obtained
on the day of such deposit.
� Time Deposits: As per the IT rules, cash remittances exceeding Rs.50000 requires the account holders PAN or form
60/61. As per our internal rules, for opening a Fixed Deposit account for amounts exceeding Rs.50000 (whether by cash
or by cheque), PAN or form 60/61 is to be obtained. Cash payment should not be made by a bank to any person whose
total holdings of Time Deposit are Rs.20000 or more as per Sec. 269 (T) of IT Act.
� Demand Draft/Pay Order/Banker’s Cheque: As per the IT rules, cash transaction for Rs.50000 and above per day
requires the remitter’s PAN or form 60/61. However, RBI has permitted cash transactions only for amounts of less than
Rs.50000. In our Bank, for an amount exceeding Rs.20000, the remitter has to be identified. Cash transactions for
Rs.50000 and above are therefore, not permitted.
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SWAGAT 2010-11 BANKING AWARENESS TRAINING PROGRAMME
Deposit Accounts – General Guidelines
CU R R E N T A N D S A V I N G S BA N K AC C O U N T S
Deposit accounts can be broadly classified as Demand Deposits and Term or Time Deposits. Current & Saving Deposits are
Demand Deposits. While no interest is to be paid in Current Deposits, the accounts can be opened by different types of
Depositors like individual/s, Corporates, Association of Persons, Body of Individuals, Firms, and Sole Proprietary Concerns
etc. mainly for business purpose.
Savings account is to be allowed only for savings purpose and not for business purpose. RBI even now regulates the interest
rate in Savings bank account and presently it is 3.5%. Interest can be paid on daily products at quarterly or longer rests
As per RBI guidelines, apart from individuals, banks can open SB A/c in the name of the following organizations/agencies.6
� Primary Co-operative Credit Society which is being financed by the Bank
� Khadi & Village Industries Board
� Agriculture Produce Market Committees.
� Societies registered under Societies Registration Act, 1860 or any other corresponding law in force in State or a Union
Territory.
� Companies governed by the Companies Act, 1956, which have been licensed by the Central Government u/s 25 of the
said Act, or under corresponding provisions in the Indian Companies Act, 1913 and permitted not to add to their
names the word “limited” or the words “Private Limited”.
� Institutions other than tho7se mentioned in Clause (i) above and whose entire income is exempt from payment of
Income Tax under the Income Tax Act, 1961.
� Government Departments /Bodies /Agencies in respect of grants / subsidies released for implementation of various
programmes / schemes sponsored by Central Government subject to production of an authorization from the respective
Govt. Departments to open savings bank account.
� Development of Women and Children in Rural Areas (DWCRA).
� Self Help Groups (SHGs) registered or unregistered which are engaged in promoting saving habit among their
members.
� Farmers clubs – Vikas Volunteer Vahini (VVV)
RBI has directed7 that banks may open SB accounts in the name of State Govt departments/bodies/agencies in respect of
grants/subsidies released for implementation of various programmes /schemes sponsored by State Govts on production of
an authorization to the bank from the respective Govt. departments certifying that the concerned govt. dept. or body has
been permitted to open SB account.
6 Ref. RBI Credit Information Review – Oct 2000, Also available on Internet at www.cir.rbi.org.in
7 As per RBI DBOD/DIR/BC 51/13.03.00/2002-03 on the subject of opening of SB accounts in the name of certain bodies /organizations
Interest Payments in
Current Accounts
� Can be paid for accounts
maintained by Regional Rural
Banks with sponsoring banks at
the rate which is decided by the
concerned sponsoring bank.
� Can also to be paid for current
accounts of Deceased individual
account holder and sole
proprietory concern for credit
balances, from the date of death to
the date of settlement at saving
bank rate.
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SWAGAT 2010-11 BANKING AWARENESS TRAINING PROGRAMME
DO M E S T I C TE R M DE P O S I T S
Interest Rate: De-regulated. Banks can offer Fixed or Floating rates. Banks have been given discretion to offer differential
rates of interest on domestic term deposits of the same maturity of Rs.15 lakhs and above. i.e. depending upon size of the
deposit of Rs.15 lakhs and above. e.g. for a Deposit of Rs. 20 lakhs a bank can offer higher rate than that of a Rs.10 lakh
deposit even for the same tenure.
Min Period: 7 Days as prescribed by RBI. In our bank, the minimum period is 7 days in respect of bulk deposits (i.e.Rs.15
lakhs and above). For all other deposits, the minimum period (in our bank) is 15 days.
Maximum Period: 10 Years. However, banks may accept deposits for periods exceeding 10 years in case of court orders or
in case of minors where interest of minor is involved.
Rate of Interest and Margin for Advance against Term Deposits: De-regulated and left to be decided by individual banks.
In our bank, the minimum margin to be maintained on such advance is 15% and the rate of interest over the deposit rate, is
2% for deposits upto Rs. 1 Crore, 3% for deposits above Rs. 1 crore, and 4% for third party loans irrespective of deposit
amount.
Deposit Scheme for senior citizens (60 years and above in age): Banks are permitted to formulate Fixed Deposit Schemes
specifically meant for Senior Citizens offering higher rates as compared to normal deposits of any size.
Discretion to disallow premature withdrawal: Freedom given to banks in respect of large deposits held by entities other
than individuals and HUF.
Penalty for premature payment: De-regulated. Banks can even pay without penalty.
Renewal of overdue deposit: Renewal as of date is permitted where overdue period is upto 14 days only.
Payment of interest in accounts of deceased customers: Where the depositor has expired before the date of maturity of the
deposit and the amount is claimed after the date of maturity the bank should pay interest at contracted rate till the date of
maturity. The bank should pay simple interest at the applicable rate, operative on the date of maturity for the period for
which the deposit remained with the bank beyond the date of maturity. In case of death of the depositor after the date of
maturity of the deposit, however, the bank should pay interest @ SB rate operative on the date of maturity from the date of
maturity till the date of payment.
Payment of interest in Term Deposit maturing on holidays: As per IBA - Code for Banking Practice, if the noted due date
of a term deposit falls on a holiday, Sunday, non-business working day, interest be paid for such intervening day (s) at the
originally contracted date till the succeeding working day.
Settlement of Claims in Deceased Depositors Accounts As per RBI directives, while settling the claim of deceased depositors where nomination is not registered, the requirement of
insisting on succession certificate from the legal heirs has been totally withdrawn irrespective of the amount involved.
However, banks should adopt such safeguards in settling claims, as they consider appropriate including taking of
indemnity bond. Succession certificate can be insisted upon only in case of failure to comply with such safeguards by the
claimants.
With a view of harmonizing present regulations on interest rates and interest calculation methodologies and based on the
views of a working group headed by Mr. Sinor (IBA), RBI has announced the following changes in the guidelines:
All aspects concerning renewal of overdue deposits including payment of interest for renewal within and after 14 days,
margin on advance against term deposit and interest payable on maturity proceeds of deposit account of deceased
depositor and method of calculation of interest on payment of interest on fixed deposit have been deregulated and left to
the discretion of individual banks subject to their boards laying down a transparent policy in this regard.
Interest Application on Premature Withdrawals and Part Withdrawals of Term
Deposits These guidelines cover premature withdrawals and part-withdrawals and are not applicable to Inter-Bank deposits.
Premature withdrawal (Full amount): Interest paid is always at the rate corresponding to the period for which the deposit
has run.
Rupee Deposits
Particulars for Domestic/NRO Deposits Penal Interest Rates
(1) For Deposits of less than Rs 15 lacs
For deposits that have run for less than fifteen days No interest to be paid.
B. For deposits that have run for at least fifteen days No premature penalty to be charged.
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SWAGAT 2010-11 BANKING AWARENESS TRAINING PROGRAMME
Particulars for Domestic/NRO Deposits Penal Interest Rates
(2) For Deposits of Rs 15 lacs and above but less than Rs 5
crores(*)
A. For deposits that have run for less than seven days No interest to be paid.
B. For deposits that have run for at least seven days No premature penalty to be charged.
(3) For Deposits of Rs 5 Crore and above(*)
A. For deposits that have run for less than seven days No interest to be paid.
B. For deposits that have run for at least seven days Premature penalty of 1% to be charged.
PARTICULARS for Non-Resident Rupee Deposits PENAL INTEREST RATES
(1) For Deposits of less than Rs 5 crore
A. For deposits that have run for less than one year No interest to be paid.
B. For deposits that have run for at least one year No premature penalty to be charged.
(2) For Deposits of Rs 5 crore and above(*)
A. For deposits that have run for less than one year No interest to be paid.
B. For deposits that have run for at least one year Premature penalty of 1% to be charged.
2. Foreign Currency Deposits:
A) Resident Foreign Currency (RFC):-
The following rules are subject to a deposit running for the minimum period stipulated in the rate chart (which is at present
30 days). If the deposit has not completed the minimum period, no interest will be paid on the deposit.
Deposit Currency/ For deposit amounts below the
threshold limit
For deposit amounts equal to & above the threshold
limit USD 10,00,000 No penalty. Penalty of 1%.
EUR 10,00,000 No penalty. Penalty of 1%.
GBP 7,50,000 No penalty. Penalty of 1%.
B) Foreign Currency Non Resident (FCNR (B)) Deposits:
The following rules are subject to a deposit running for the minimum period stipulated in the rate chart (which is at present
12 months). If the deposit has not completed the minimum period, it will not get any interest.
Deposit Currency/ Threshold Limit(*) For deposit amounts below the
threshold limit
For deposit amounts equal to & above the
threshold limit USD 10,00,000 No penalty. Penalty 1%.
EUR 10,00,000 No penalty. Penalty 1%.
GBP 7,50,000 No penalty. Penalty 1%.
JPY 12,50,00,000 No penalty. Penalty 1%. (*)The amounts mentioned as threshold for premature penalty are applicable as on the date of this circular. These amounts can change in the
future. In case of changes this circular may be read along with the changed threshold limits.
Part Withdrawals of Term Deposits
� All part withdrawals in Finacle for all products are governed by the same rules. Applicability of penal rate on the part
withdrawn amount is governed by the rule of threshold limits set for each product. The logic of part withdrawal is
detailed below:
� The original deposit amount gets reset to a new value, which is equal to original deposit less part withdrawn amount.
� The rate of interest applicable on the residual deposit also gets reset based on the residual principal.
� The tenor of the deposit remains unchanged.
� Interest paid on the part withdrawn amount is equal to the rate applicable on the original deposit for the period run
and not on the amount of part withdrawal.
� Penalty is applied if the original deposit is over the threshold limit set for the scheme.
The following examples of domestic rupee deposits illustrate:
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� Part withdrawal of 1 crore happens after the deposit has run for 20 days.
� Rate applicable on a deposit of 25 crores for a period of 20 days is 3.75%. Interest
payable on the part withdrawal amount of 1 crore is 3.75% less 1% penalty (as
there is 1% premature penalty on deposit of 5 crores & above), applicable rate is
2.75%
� The residual deposit’s principal gets reset to 24 crores.
� The applicable rate gets reset to the rate applicable on a deposit of 24 crores for a
tenor of 45 days effective on 20.10.2003 (which may be different than the rate
applicable on the original deposit of 25 crores).
� Part withdrawal of 1 crore happens after the deposit has run for 20 days.
� Rate applicable on a deposit of 4 crores for a period of 20 days is 3.25%.
� Interest payable on the part withdrawal amount of 1 crore is 3.25% without
penalty (as there is no premature penalty on deposit below 5 crores).
� The residual deposit’s principal gets reset to 3 crores
� The rate gets reset to the rate applicable on a deposit of 3 crores for a tenor of 45
days effective on
� 20.10.2003 (which may be different than the rate applicable on the original
deposit of 4 crores).
� This circular will be made effective from 1st December June 2003.
Interest Payment on Overdue Deposits8 Further to our circular No: OPERATIONS/17/2002-03 dt. August 28, 2002 discontinuing backdated renewal of overdue
deposits where the overdue period is above 14 days, we have built in a structure in Finacle, disabling renewal of such
deposits and providing for payment of interest for the overdue period if it exceeds 14 days, which will be available to users
from 16th September 2002. We furnish below further clarifications in this regard.
The rules as per the above circular are applicable not only to domestic deposits, but to all rupee deposits such as NRO and
NRE. FCNR and RFC schemes are already covered by similar directives, as mentioned in the Manual of Instructions.
The schemes excluded from this directive are Inter-Bank deposits, High Value Term Deposits, Certificate of Deposits,
MIBOR linked term deposits, Recurring deposits, and withdrawn schemes of NRNR and NRSR. Overdue deposits with
overdue period upto 14 days can be renewed in the usual manner.
While closing overdue deposits with overdue period above 14 days, user will be given an option whether to apply overdue
interest or not. It should be ensured that overdue interest is applied only when at least the principal portion of the deposit is
renewed. In all cases of payment of overdue interest, a narration should be made on the new deposit receipt manually,
"Renewed Deposit - Overdue interest Rs. ___ paid". This is very important.
If the renewed deposit is closed prematurely before completion of the minimum stipulated period for term deposits (7 days
for deposits of Rs.15 lac and above /15 days for deposits below Rs.15 lac / 6 months for NRE deposits, etc.), the overdue
interest paid as above will have to be recovered from the customer and credited into the respective Interest Paid GL head.
Branches will have to ensure that their Overdue Deposits portfolio is monitored on a regular basis, and maturity notices are
sent to the clients well in advance.
Insurance Coverage on Deposits All bank deposits are covered under the insurance scheme offered by Deposit Insurance and Credit Guarantee Corporation
of India (DICGC) subject to certain limits and conditions. The details of the insurance cover in force will be made available
to the depositor. The DICGC insures all deposits such as savings, fixed, current, recurring, etc. deposits except the following
types of deposits:
� Deposits of foreign Governments
� Deposits of Central/State Governments
� Inter-bank deposits
� Deposits of the State Land Development Banks with the State co-operative bank
� Any amount due on account of and deposit received outside India
� Any amount, which has been specifically exempted by the corporation with the prior approval of Reserve Bank of India
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Each depositor in a bank is insured upto a maximum of Rs.1, 00,000 (Rupees One Lakh) for both principal and interest
amount held by him in the same right and same capacity.
The deposits kept in different branches of a bank are aggregated for the purpose of insurance cover and a maximum
amount upto Rupees one lakh is paid. For example, if an individual had an account with a principal amount of Rs.95, 000
plus accrued interest of Rs.4, 000, the total amount insured by the DICGC would be Rs.99, 000. If, however, the principal
amount in that account was Rs. One lakh, the accrued interest would not be insured, not because it was interest but because
that was the amount over the insurance limit.
AC C O U N T S O F M I N O R S
Account Opening While opening the account of a Minor, the Bank is guided by the provisions of Section 3 of the Indian Majority Act, 1875,
which defines, inter alia, that “A minor is a person below the age of 18 years, unless a guardian is appointed by Court of Law or the
property of the minor is under superintendence of Court of Wards, in which case minority extends till the age of 21 years.” The Indian
Majority (Amendment) Act, 1999 (33 of 1999), provides for removal of the discriminatory prescription of two different ages
for attaining majority. Therefore, a Minor in both the cases becomes a Major on attaining 18 years of age.
As per the Bank’s Manual of Instructions on Retail Banking, Volume – 1, Deposits, Chapter II, Paragraphs 2.58 to 2.70, three
types of minor’s accounts can be opened at the branches. These accounts and their operative guidelines are as follows:-
1. Accounts in the name of the Minor alone –
� A literate minor above the age of 12 years, who can comprehend the nature of banking transactions and can sign
uniformly, is allowed to open and operate such an account.
� The maximum balance in such accounts is normally restricted to Rs.1 lac and exceptions permitted with the approval of
the Branch Head. Instruments in the name of the minor only as payee are allowed to be credited to such accounts. This
precludes the possibility that instruments issued in favour of the father or the mother are collected in such accounts.
2. Accounts in the name of the Minor alone but operated by the Guardian –
Such accounts opened in the name of the minor are operated by one of the parents as guardian for and on behalf of the
minor, or, in case where the natural guardian is not alive or is unable to discharge duties, by a guardian appointed by a
Court of Law for and on the minor’s behalf. The exact age of the minor is irrelevant for such an account as long as he
remains a minor. The minor’s signature is not admitted in the account for the purpose of operation. Here again, instruments
in the name of the minor only as payee are allowed to be credited to such accounts. Instruments issued in favour of the
father or the mother is not collected for this type of account. There is however no restriction as to the deposit/maximum
balance in these accounts unlike in the accounts mentioned in type 1 above.
A minor’s account may be opened with the mother as guardian to sign on his behalf but they should ensure that such an
account is not allowed to be overdrawn. Further, branches should clarify at the time of opening of such accounts to the
guardians that the minor’s acceptance may be necessary for paying out money from such an account where the amount
involved is large, say, more than Rs.1.00 lakh on any one instance, and where the minor is old enough to understand the
nature of the transaction.
3. Joint Accounts in the name of the Minor and the Guardian –
Such accounts opened in the joint names of the minor and the guardian are
operated with the signature/s of either the minor (signed by minor himself if he
is above12 years and literate or by the guardian on behalf of the minor, if he is
below 12 years or not literate) or the guardian (in his personal capacity) with
the mandate as either or survivor, or former or survivor (former may be minor
or survivor), or jointly by both where the mandate provides for joint operation.
In these cases, instruments both in the name of the minor and/or the named
guardian as payee(s) are allowed to be credited to such accounts. There is no
restriction again as to the deposit/maximum balance in these accounts unlike in
the accounts mentioned in type 1 above.
In all the above cases, the birth date of the minor (verified from the original
school/birth certificate or other similar document and copy held in records duly
marked as original verified) is required to be invariably recorded in the account
opening form/specimen signature card and entered into the customer master.
This is necessary because when a minor attains majority, the status of the guardian i.e. his authority to sign for and on
behalf of the minor is revoked. Simultaneously, the minor is required to ratify the actions taken by the guardian in the past
Minor’s Income
Under section 64.1a of the IT Act, the
income of a minor shall be clubbed
with that of the parent.
� If the marriage of the parents
subsists, then to that parent’s income
whose income is more.
� If the marriage of the parents does
not subsist, to that parent
maintaining the child.
� No clubbing if the child is disabled.
� No clubbing if the income is arising
out of the skill etc. of the child
� No clubbing if the parents are
not alive.
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SWAGAT 2010-11 BANKING AWARENESS TRAINING PROGRAMME
for and on his behalf so as to bind him on the transactions as he has now become capable of contracting in his own capacity
in the eyes of the law. Cheques issued by the guardian prior to the date of minor attaining majority but presented after the
minor attains majority also require confirmation from the minor before payment. This date is thus of legal importance to the
Bank and it is preferable that the Bank formalizes a system (preferably to be centralized) for ensuring conversion of a minor
account after this date. For this purpose, at present branches are required to send a communication (as per Annexure (II)–
VII) of the Manual of Instructions) to the guardian for conversion of the minor account to a normal account and for
completion of account opening formalities by the minor who has since attained majority. To centralise this activity, we have
advised our CPU to issue such letters for all the branches. For this purpose, the Data Centre would be generating a list of
such accounts from Finacle where a minor would be turning into a major. This option would be run by Data Centre every
month along with the month end activities. The list will then be forwarded to the CPU who would send the relative letters.
This activity will start from August, 2005 and letters will be sent for all savings accounts where the minor is becoming 18
years of age between 01.09.2005 and 30.09.2005 and so on every month thereafter.
Branches need not therefore send such letters after August 1, 2005. This will be applicable to the accounts of both Type 2
and 3 mentioned above i.e. the account in the name of the minor and the joint account of the minor and the guardian where
guardian is signing on behalf of the minor.
In addition, after a minor attains majority, branches should take a balance confirmation letter as well as a new account
opening form from the erstwhile minor and modify their records accordingly.
ATM Cards Issued to Minors The Bank currently issues Trust 24 ATM cards to Minors, above the age of 12. In order to increase operational efficiencies, it
has been decided to issue Debit Card to minors above the age of 12.
The details of the offering are as follows:
� Issuance of Debit Card to minors above the age of 12 years, who can sign uniformly.
� Daily withdrawals limits of Rs. 1500/- at ATMs
� Daily spend limits of Rs. 1000/- at merchant outlets
� Duly filled Debit Card application form for Minors.
The form needs to be filled by the guardian and it covers the following aspects
� Consent of natural guardian for issuance of Debit card to minor
� Confirmation that the Guardian has explained the minor about the usage of Debit Card especially the fact that the PIN
number is not to be disclosed to anybody. Also, that the Bank has issued the Debit card to minor at the request of his
natural guardian and the Bank is not liable for any misuse of the Debit card issued to the minor.
Adequate number of application forms would be dispatched to the Zonal offices and the branches are requested to contact
their respective Zonal offices for the requisite number of forms. The Branch would be required to attach a Bar code sticker
(specific to the Branch) while submitting the application form to CPU.
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SWAGAT 2010-11 BANKING AWARENESS TRAINING PROGRAMME
Nomination Facility
Q.1 Where are the rules for Nomination Facility in Banks mentioned?
Ans. The rules are as per Banking Regulation Act
Q.2 Can Nomination be made in any Deposit Account?
Ans. Yes – in Current or Savings or Term Deposits but the Account should stand in the name of Individual or
Individuals or Sole Proprietary Concern.
Q.3 Can a minor be appointed as Nominee in a Deposit Account?
Ans. Yes. But the A/c holder/holders will have to appoint another person who is not a minor, to enable the bank to settle
claim to minor if the need arises when the minor is still to become a major.
Q.4 What are the prescribed forms for making Nomination?
Q.5 In the event of death of depositor in a Term Deposit before due date, what is the option available to Nominee?
Ans. The Nominee can be given on request, a premature payment.
Q.6 In case of Joint Deposit Account say in the name of A & B with disposal instruments E or S, can the nominee claim
the amount in case of death of A.?
Ans. No. Nominee gets the right only in case when both A and B die.
Q.7 While accepting Nomination, should a bank insist on taking Signature of Nominee?
Ans. No. Only Name and Address should be taken.
Q.8 Who can identify a Nominee before Settlement of claim?
Ans. A Magistrate and Judicial Official or an Officer of the Central or State Government or an Officer of a Bank or any
two persons acceptable to the Bank can identify nominee.
Q.9 Can Multiple Nomination (more than one nominee) be accepted?
Ans. No. Only single nomination per contract should be taken except in case of a locker, standing in joint names and
operated jointly in which multiple nomination can be taken and for this a special form SL – 1A is to be got signed by such
joint locker holders.
Q.10 Can a minor be appointed as nominee in a Locker?
Ans. In practice, a minor is not accepted as nominee in a locker.
Q.11 Can nomination be accepted in Safe Custody?
Ans. Yes, but only in case of single safe custody.
Q.12. Is nomination compulsory?
Ans. No, it is an option. However, RBI has advised that while opening deposit accounts, banks should insist on the
person opening the deposit account to make a nomination. In case the person opening the account declines to make a
nomination, the bank should explain to him/her the advantages of nomination facility. If the person opening the account
still does not want to nominate, the bank should obtain from him/her, a specific letter stating that he/she does not want to
Deposit
A/c Locker
Safe
Custody
Deposit Accounts Sec 45ZA 45ZB
Making DA – 1 SL – 1 SC – 1 Safe Custody Sec 45ZC 45ZD
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make a nomination. In case the person opening the account declines to give such a letter, the bank should record the fact on
the account opening form and proceed with opening the account if otherwise found eligible. Under no circumstances, bank
should refuse to open an account solely on the ground that the person opening the account refused to nominate.
Q.13 Why nomination?
Ans. Nomination is a facility, which facilitates settlement of claim in case of death, to the nominee, easily and fast,
without any hassle.
Q.14. Can we accept nomination in an overdraft account to settle the claim in case of credit balance?
Ans. No.
Q.15. Can a Registered Trust be appointed as Nominee in a Deposit Account of an individual?
Ans. No, because a Trust, even though registered, is not a single individual person.
NO M I N A T I O N R U LE S A T A G L A N C E :
� A. Deposit Accounts: Forms
� For registration of Nomination DA 1
� For cancellation of Nomination DA 2
� For Variation of Nomination DA 3
� B. Safe Custody:
� For Registration of Nomination SC 1
� For Cancellation of Nomination SC 2
� For Variation of Nomination SC 3
� C. Safe Deposit Vault (Locker)
� Registration (sole hirer) SL 1
� Registration (joint hirers) SL 1A
� Cancellation (sole/Joint hirer) SL 2
� Variation (sole hirer) SL 3
� Variation (joint hirer) SL 3A
Type of the A/c Eligible account No. of nominees permitted
Deposit Single or joint One
Safe custody Single One
Safe Deposit
vault/locker Single or Joint
In case of Accounts in single name:: One
In case of Joint account
--E or S a/c :: one
--F or S a/c :: one
--Joint opr. A/c :: one or more
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Income Tax
FAQ O N I N C O M E TA X RU L E S
1. What are the banking transactions for which PAN/GIR number is to be quoted?
(i) Opening a time deposit, exceeding fifty thousand rupees, made in cash with a bank.
(ii) Opening an account (not being a time deposit referred above) with a bank, whether by cash, or by any other mode.
(iii) Payment in cash for purchase of bank drafts or pay order from a bank for an amount aggregating fifty thousand rupees or more during any one day.
(iv) Deposit in cash aggregating fifty thousand rupees or more, with a bank during any one day.
(A strict interpretation of the Income tax rules does not necessitate obtention of PAN when an account is opened by a cheque, under 1(ii) above. However,
keeping in mind the stipulation of quoting PAN for subsequent cash deposits of Rs.50,000/- and above, it is prudent to obtain PAN at the time of opening
accounts itself. This practice is also followed by peer level banks.)
2. What if the customer has not been allotted a PAN/GIR number?
A person who has not been allotted PAN, or who does not have a General Index Register Number, and who makes the above transactions shall make a
declaration in Form No.60 giving therein the particulars of such transaction. This declaration must be made on each occasion on which any of the above
specified transactions are entered into. Persons, who have agricultural income and are not in receipt of any other income chargeable to income tax, shall make a
declaration in Form No.61. A minor who does not have any income chargeable to income tax, shall quote the PAN/GIR Number of his father or mother or
guardian, as the case may be.
3. Under 1(i) and 1(ii) above, (opening an account), should PAN be obtained from all joint holders of the account?
Yes. The rules regarding obtaining PAN are applicable even to joint holders of accounts, and not only to the primary holder.
4. What are the rules regarding reporting to Income Tax authorities?
Branches shall forward to the concerned Director of Income Tax (Investigation) or Commissioner of Income Tax (CIB), a statement indicating therein details of
all documents pertaining to transactions referred to under 1(i) to 1(iv) above, containing the name and address of the person entering into the transactions,
nature and date of the transactions, and PAN or GIR number quoted in the documents pertaining to these transactions. This is to be submitted in two
instalments, in October and March of every year, enclosing form 60/61 as detailed in the next paragraph. The assistance of Data Centre may be availed for
system-generation of such reports.
5. Are the Form Nos.60/61 thus collected, to be forwarded to IT authorities?
Except for those collected under 1(ii) above, all other form Nos. 60/61 received during a financial year shall be forwarded to the concerned Director of Income
Tax (Investigation) in two instalments, along with a statement as detailed in the earlier paragraph, that is, the forms received upto the 30th September, shall be
forwarded latest by 31st October of that year, and the forms received till the 31st March shall be furnished latest by 30th April of the same year.
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BANKING AWARENESS TRAINING
6. In respect of 1(iv) above, for cash deposits aggregating fifty thousand rupees or more, should the PAN of the account holder be obtained, or the PAN of
the person depositing the cash?
The PAN/GIR number of the account holder is to be obtained. The details of PAN should be fed in the relevant field of 'CUMM' in Finacle, so that it is available
in the system generated report.
7. Can we issue Demand Drafts/Pay Orders etc against cash above rupees fifty thousand?
No. As per RBI guidelines, Banks are required to issue travellers cheques, Demand Drafts, etc for Rs.50, 000/- and above only by debit to customers' accounts or
against cheques and not against cash.
8. Can we provide information to Income Tax authorities, even when the information sought are not specific to any pending enquiry or proceedings?
Section 133(6) of the Income Tax Act, 1961 requires the bank to furnish information in relation to such points or matters, or to furnish statements of accounts
and affairs relevant to any enquiry or proceeding under this Act.
However, under the authority of the Director, or Commissioner of Income Tax, powers can be exercised by Income Tax department under section 133(6) to call
for information even when no proceedings are actually before them. This can be used to make a sweeping or roving enquiry, by calling for information in
regard to all deposit-holders. Therefore we are bound to provide such information.
9. Should TDS be effected for customers earning more than their MAXIMUM EXEMPTION AMOUNT CHARGEABLE TO INCOME TAX as interest, even
if they submit form 15G ?
Yes. TDS has to be effected, and form15G cannot be accepted in such cases. Even if accepted and marked in Finacle, TDS will be deducted, when the interest
amount exceeds Rs. 160,000 for Males and Rs. 190,000 for Females, in a Financial Year.
T A X DE D U C T I O N A T SO U R C E (TDS)
Tax deducted at source is one of the modes of collecting Income-tax from the assessees. Assessee pays tax in the assessment year on the income earned in
previous year. Due to this rule the tax collection is delayed till the completion of the previous year. Even sometimes people conceal their income and the tax is
not paid at all. In order to overcome these problems, government started deducting some amount of tax from the amount, which is receivable by the assessee.
The amount of tax so deducted is called as “Tax Deducted at Source”, i.e., TDS.
Such collection of tax is effected at the source when income arises or accrues. Hence where any specified type of income arises or accrues to any one, the
Income-tax Act enjoins on the payer of such income to deduct a stipulated percentage of such income by way of Income-tax and pay only the balance amount to
the recipient of such income. The tax so deducted at source by the payer has to be deposited in the Government treasury to the credit of Central Govt. within
the specified time. The tax so deducted from the income of the recipient is deemed to be payment of Income-tax by the recipient at the time of his assessment.
Income from several sources is subjected to tax deduction at source. Presently this concept of T.D.S. is also used as an instrument in enlarging the tax base.
Amongst such income subjected to T.D.S. is the interest on Bank deposits.
TDS is applicable if the total interest on Fixed Deposit/s of a depositor maintained in a branch of a bank is in excess of Rs.10000/- during the Financial Year.
Subject to certain conditions, the depositor/s may request for relief from TDS by forwarding the formats 15G (15H for senior citizens) as prescribed by the
Income Tax Act.
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BANKING AWARENESS TRAINING
S U M M A R Y O F I M P O R T A N T TDS RU L E S A S P E R F I N A N C E AC T 2009
Please find below a summary of the important TDS rules / procedures as amended by the Finance (No. 2) Act, 2009.
1. Branches/Offices/Hubs should note that the Finance (No. 2) Act, 2009 has removed surcharge and education cess on TDS applicable on
payments made to resident taxpayers. The salient features for levy of surcharge and education cess on TDS are given below.
a. Resident payee (including domestic company): No surcharge and education cess will be levied on applicable TDS. However, the
education cess will be levied on TDS applicable on salary payments under section 192 of the Income Tax Act, 1961.
b. Foreign company: The education cess @3 % will be applicable to TDS on payments made to foreign company. However
surcharge @2.5% will be applicable to TDS on all payments, if aggregate payments made to the company during the year
exceeds Rs. 1 crore.
c. Non-residents (except foreign company): Only education cess and no surcharge will be levied on TDS on payments made to
non-residents.
2. Branches/Offices/Hubs should take note of the following aspects detailed in the Annexure.
a) Annexure I - When liability to deduct tax at source arises and the applicable rates.
b) Annexure II - The due dates for remittance of TDS amounts.
c) Annexure III - When to deduct tax at lower rates or not to deduct any tax and the
prescribed forms to be obtained for doing so.
3. The TDS rates as mentioned in Annexure I for payments made on interest on deposits u/s 194A of the Income Tax Act, 1961 will be
applicable from 1st April 2009 and all other payments will be applicable from 19th August 2009.
4. Branches/Offices/Hubs should also note that:
a) TDS should be remitted, strictly within the stipulated due dates, as specified in Annexure II.
b) In terms of CBDT notification no. 34/2008 dated 13th March 2008, any payment of Income tax by companies and some other specified
assesses should be made online (e-payment) by mode of internet banking. Kindly refer F&A Circular/165/2008-09 dated 3rd April 2008
regarding procedure for e-payment of Income Tax. While remittance of TDS in electronic mode i.e. e-payment, utmost care should be
taken in online filling of TDS challans as the payment made online through e-payment mode is irreversible.
c) Any delay in remittance of TDS amount to the Income- tax authorities attracts interest @ 1% per month or for a part of the month of delay.
Branches/Offices/Hubs should put in place appropriate systems to ensure that TDS amounts are remitted to Income Tax department
promptly within the stipulated due dates. However, if any delay is caused due to extraordinary reasons, the TDS amount should be
remitted along with interest for the delayed period to avoid penal action in future. Branches/Offices/Hubs should note that provisions are
there in the Income Tax Act that result in a disallowance of expenses in case of non-deduction of TDS or short deduction of TDS, deferring
the allowance of such expenses in case of a delay in the year of actual remittance of TDS.
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d) In case of tax deduction under Section 194A (payment of interest other than interest on securities), as per sub-section 4 of that Section,
any excess or deficit arising out of a previous deduction can be adjusted while making subsequent remittance of TDS amounts under
that Section during the same financial year. However, the same benefit is not available in case of tax deduction under any other
section. For TDS other than on interest on deposits (Section 194A), if any excess amount is deducted and deposited, the refund can be
claimed from the Income Tax department only.
e) The Income Tax department has clarified that the certificate for nil deduction or deduction at lower rates (issued under Section 197A) will
be valid only in respect of credits or payments made on or after the date of such certificates or during the period mentioned in the
certificate.
f) The Permanent Account Number (PAN) of the payee should invariably be obtained before issuance of TDS certificate. The mention of
PAN of payees in the quarterly TDS returns as well as on TDS Certificates is mandatory. Not obtaining the PAN also entails penalty. The
Finance Act 2009 has prescribed that w.e.f. 1.4.2010 in case of payees who do not give PAN, the TDS will be deducted at higher of the
following rates.
� TDS rate as applicable
� TDS rate of 20%
5. Branches/Offices/Hubs should use separate challans for Section-wise TDS.
6. Branches/Offices/Hubs should review the TDS payments for the year on or around 15th March 2010 and if any short deduction or deposit or
non-deduction or deposit is found, then such shortfall should be paid along with interest @1% per month before 31st March 2010.
7. Branches/Offices/Hubs may please note that the TDS returns need to be filed within the due dates prescribed. The following are the TDS
returns needed to be filed for the financial year 2009-2010 and their due dates.
Return in respect of Prescribed
Form
Return for the
Quarter ended
Due date for filing
TDS from Salary payments. 24Q 30th June 2009 15th July 2009
30th Sept 2009 15th Oct 2009
31st Dec 2009 15th Jan 2010
31st March 2010 15th June 2010
Return in respect of Prescribed
Form
Return for the
Quarter ended
Due date for filing
TDS from the payments made to
the residents.
26Q 30th June 2009 15th July 2009
30th Sept 2009 15th Oct 2009
31st Dec 2009 15th Jan 2010
31st March 2010 15th June 2010
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BANKING AWARENESS TRAINING
Return of payment of interest on
deposits to residents without TDS.
26QAA 30th June 2009 31st July 2009
30th Sept 2009 31st Oct 2009
31st Dec 2009 31st Jan 2010
31st March 2010 30th April 2010
TDS from payments made to Non-
residents/foreign companies
27Q 30th June 2009 14th July 2009
30th Sept 2009 14th Oct 2009
31st Dec 2009 14th Jan 2010
31st March 2010 14th April 2010
Note : - In case of any date falls on Sunday/public holiday payment have to be done on the previous day.
Branches/Offices/Hubs should ensure that the TDS e-returns are filed positively within the due dates.
8. The Branches are hereby instructed not to use the following TANs used from the central office for making any TDS payments.
• TAN of CPU-TDS : MUMU 05151 G
• TAN on HR : MUMU 01693 G
• TAN of CAP-HUB : MUMU 05154 C
9. Branch Heads/ Zonal heads/ Departmental heads are advised to bring the contents of this circular to the notice of all the concerned
employees.
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BANKING AWARENESS TRAINING
Annexure I
The rates of TDS in respect of payments generally made by the Branches/Offices/Hubs as prescribed by Part II of First Schedule of Finance (No. 2)
Act, 2009.
I. RATES APPLICABLE UPTO 30TH SEPTEMBER 2009.
NATURE OF
PAYMENT
Section of the IT Act
1961
When to Deduct Tax at Source
Rate at Which Tax is to be Deducted at
Source
Interest other than
Interest on securities.
(e.g. interest paid /
payable on deposits)
194A
(payment
to
residents)
195
(payment
to non-
residents)
At the time of credit or
payment, whichever is
earlier, when the aggregate
sums payable during the
financial year exceed Rs.
10,000/-.
I N C A S E O F RE S I D E N T S :
For Individuals, HUFs, Partnership firms, co-operative societies local
interest payments during the previous year exceed Rs. 1 crore.
Payments to resident
contractors other than
sub-contractors and
advertising contracts.
194C
At the time of credit or
payment whichever is
earlier, when the contract
value exceeds Rs. 20,000 or
when the aggregate
payments to a single payee
during the previous year
exceed Rs. 50,000.
For individuals & HUFs, co-operative society, local authority,
partnership firm and domestic companies – 2%
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BANKING AWARENESS TRAINING
NATURE OF
PAYMENT
Section of the IT Act
1961
When to Deduct Tax at Source
Rate at Which Tax is to be Deducted at
Source
Payments made to
resident :
i) sub-contractors
ii) to contractors for
Advertising Contracts
194C
At the time of credit or
payment whichever is
earlier, when the contract
value exceeds Rs. 20,000 or
when the aggregate
payments to a single payee
during the previous year
exceed Rs. 50,000.
For individuals & HUFs, co-operative society, local authority,
partnership firm and domestic companies – 1%
Commission or
Brokerage paid to
residents (excluding
Brokerage payable /
paid on purchase/ sale
of securities).
194H At the time of credit or
payment whichever is
earlier, when the aggregate
sums payable during the
financial year exceed Rs.
2,500.
For Individuals, HUFs, Partnership firms, co-operative societies local
authorities and domestic companies – 10%
Rent paid to residents
(Rent means any
payment for the use of
land, building, land
appurtenant to a
building, machinery,
plant, equipment,
furniture or fittings)
(It means the car,
delivery van taken on
hire for use will also fall
under the rent
because car/delivery
van is a machinery
under Income Tax Act)
194 I At the time of credit or
payment whichever is
earlier, when the aggregate
sums payable during the
financial year exceed Rs.
120,000/-.
A. Rent for use of any machinery or plant or equipment:
For individuals, HUFs, co-operative society, local authority,
partnership firm and domestic companies – 10%
B. Rent for use of any land, building, furniture and/or fittings:
(i) For individuals & HUFs – 15%
(ii) For co-operative society, local authority, Partnership firms and
Domestic companies – 20%
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BANKING AWARENESS TRAINING
NATURE OF
PAYMENT
Section of the IT Act
1961
When to Deduct Tax at Source
Rate at Which Tax is to be Deducted at
Source
Fees for Professional
Services paid to
residents.
Fees for Technical
Services or payment of
royalties payable to
residents.
194 J At the time of credit or
payment whichever is
earlier, when the aggregate
sums payable during the
financial year exceeds Rs.
20, 000/-.
For Individuals, HUFs, Partnership firms, co-operative societies
local authorities and domestic companies – 10 %.
II. RATES APPLICABLE FROM 1st OCTOBER 2009
NATURE OF
PAYMENT
Section of
the IT Act
1961
When to Deduct Tax at
Source
Rate at Which Tax is to be Deducted at
Source
Interest other than
Interest on securities.
(e.g. interest paid /
payable on deposits)
194A
(payment
to
residents)
195
(payment
to non-
residents)
At the time of credit or
payment, whichever is
earlier, when the
aggregate sums payable
during the financial year
exceed Rs. 10,000/-.
I . I N C A S E O F RE S I D E N T S :
For Individuals, HUFs, Partnership firms, co-operative societies local authorities
and domestic companies – 10%.
IN THE CASE OF NON RES IDENTS :
(Applicable to NRO Accounts only)
a. Non-Resident Individuals – 30.90%
b. Foreign Company
Without Surcharge 41.20 %
With Surcharge^ 42.23 %
^[email protected]% shall be applicable only if the aggregate interest
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BANKING AWARENESS TRAINING
NATURE OF
PAYMENT
Section of the IT Act
1961
When to Deduct Tax at Source
Rate at Which Tax is to be Deducted at
Source
payments during the previous year exceed Rs. 1 crore.
Payments to
contractors, sub-
contractors, including
advertising contracts
who are residents.
194C At the time of credit or
payment whichever is
earlier, when the contract
value exceeds Rs. 20,000 or
when the aggregate
payments to a single
payee during the previous
year exceed Rs. 50,000.
A. OTHER THAN GOODS TRANSPORT BUSINESS
(i) For Individuals and HUFs – 1%
(ii) For Co-operative society, local authority, partnership firm and
domestic companies – 2%
B. FOR GOODS TRANSPORT BUSINESS
In case PAN is submitted - NIL
In case PAN is not submitted
I.For Individuals and HUFs – 1%
II.For Co-operative society, local authority, partnership firm and domestic
companies – 2%
Commission or
Brokerage to
residents.(excluding
Brokerage payable /
paid on purchase/ sale
of securities).
194H At the time of credit or
payment whichever is
earlier, when the
aggregate sums payable
during the financial year
exceed Rs. 2,500.
For Individuals, HUFs, Partnership firms, co-operative societies local
authorities and domestic companies – 10%
Rent paid to residents.
(Rent means any
payment for the use of
land, building, land
appurtenant to a
building, machinery,
plant, equipment,
furniture or fittings)(It
means the car,
delivery van taken on
hire for use will also fall
under the rent
because car/delivery
194 I At the time of credit or
payment whichever is
earlier, when the
aggregate sums payable
during the financial year
exceed Rs. 120,000/-.
A. Rent for use of any machinery or plant or equipment:
For individuals, HUFs, co-operative society, local authority, partnership
firm and domestic companies – 2%
B. Rent for use of any land, building, furniture and/or fittings:
For individuals, HUFs, co-operative society, local authority, partnership firm
and domestic companies – 10%
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BANKING AWARENESS TRAINING
NATURE OF
PAYMENT
Section of the IT Act
1961
When to Deduct Tax at Source
Rate at Which Tax is to be Deducted at
Source
van is a machinery
under Income Tax Act)
Fees for Professional
Services paid residents.
Fees for Technical
Services or payment of
royalties to residents,
194 J At the time of credit or
payment whichever is
earlier, when the
aggregate sums payable
during the financial year
exceeds Rs. 20, 000/-.
For Individuals, HUFs, Partnership firms, co-operative societies local
authorities and domestic companies – 10 %.
ANNEXURE
Section of the Income Tax Act & Nature of
Income/payment
Due Dates for remittance of TDS to taxation authorities
192 – Salary Within 1 week from the last day of the month in which the deduction is made
194 A – Interest other than Interest on
securities
Within 1 week from the last day of the month in which the deduction is made.
194 C – Payments to contractors Within 1 week from the last day of the month in which the deduction is made.
194 H – Commission or Brokerage Within 1 week from the last day of the month in which the deduction is made.
194 I – Rent Within 1 week from the last day of the month in which the deduction is made.
194 J – Fees for Professional or Technical
Services or royalty
Within 1 week from the last day of the month in which the deduction is made
195 – Payments to Non-Resident or foreign
companies
Within 1 week from the last day of the month in which the deduction is made
In case of payments made u/s 194A, 194C, 194H, 194I, 194J, 195 any tax deducted from credit for provisions made on the last day of March i.e.,
31st March can be deposited in the government account within 2 months from the date of such payment/provision.
Annexure III
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BANKING AWARENESS TRAINING
Deduction of Tax at Lower rates or Nil rates
a) In case of Sec 194 A – Interest on Deposits
The Branches/offices/Hubs may deduct tax at lower rates or not deduct any tax if the customers (Individuals, HUF, trust, society, AOP, BOI, local
authority but not being a company or a firm) give a declaration in Form 15G in triplicate to the effect that the tax on his estimated total income of
the relevant financial year will be nil. Also if an individual is of the age more than 65 years then such declaration could be in Form 15H. On receipt
of such declaration the Branches/Offices/Hubs should complete and certify the details to be filled up by the branch and then to deliver (or cause
to be delivered) two copies of the same to the Chief Commissioner or Commissioner of Income Tax (or TDS office) within seven days of the month
following the month in which the declaration is received from the customer.
However, if the aggregate amount of interest income paid or credited or likely to be paid or credited to the concerned depositor by the
branch during the financial year ending 31st March, 2009 exceeds the amount as specified in the table below, the branch shall not give effect to
the aforesaid Form No. 15G/15H and shall deduct tax on such interest as per normal practice. The limits for the same are mentioned in the table
below:
Status of depositor Gender of
depositor
Form to be submitted
by the depositor
Remarks
Depositor is less than
65 years of age
Male 15 G ‘Nil’ TDS, only if interest credited or paid or likely to be credited or
paid during the financial year is less than Rs. 1,60,000/- else TDS at
prescribed rates.
Depositor is less
than 65 years of
age
Female 15 G ‘Nil’ TDS, only if interest credited or paid or likely to be credited or
paid during the financial year is less than Rs. 1,90,000/- else TDS at
prescribed rates.
Depositor is more
than 65 years of
age
Male/Female 15G/15H ‘Nil’ TDS. If interest credited or paid or likely to be credited or paid
during the financial year is less than Rs. 2,40,000/- else TDS at
prescribed rates.
b) In cases other than Sec 194A, the request for deduction at lower rates or non deduction should be obliged by the branch only if the payee
furnishes a certificate from the assessing officer/TDS officer to this effect (as per section 197). The payee can make such request to the
assessing officer/TDS officer in prescribed Form No. 13 and get a certificate for lower/NIL deduction of tax at source. The payee is required to
produce the certificate from the Income Tax department for lower deduction/NIL deduction of TDS in all the above cases except in the case
of interest other than interest on securities under section 194A where the declaration 15G / Form 15H shall be furnished by the payee.
54
Banking - Secured
NETSECURE with SMS NETSECURE with WebPin NETSECURE with 1-Touch
We at Axis Bank have always endeavoured to provide the best of banking services to our customers. Our
latest initiative is NETSECURE, which is a #Two Factor Authentication system to provide added security to
your online banking transactions and this makes your fund transfers absolutely safe and secure.
NETSECURE is a secured system wherein two different parameters (one that you already know, like your login ID and password and second, a single usage password that you generate or receive) are used together to verify your identity on the Internet. Using two factors as opposed to one factor (just the login ID and password) ensures heightened security for your online transactions.
We have introduced three types of NETSECURE for your convenience. Please register for one of the three options to enable fund transfers online.
In NETSECURE with SMS, the NETSECURE Code (a single usage password) is sent to your mobile phone through SMS. Every time you transfer funds or register a beneficiary (recipient), you need to enter the NETSECURE Code to complete the transaction, after which the Code will expire.
To login using NETSECURE with WebPin, you need to register one or more of your frequently used computers. You can then use iConnect only from these registered computers. In addition, during registration, you will be prompted to set a WebPin. This WebPin will be used to generate a NETSECURE Code (a single usage password) which will be required to login and transact on iConnect.
NETSECURE 1-Touch is a small device that generates a unique NETSECURE Code (a single usage password) every time a button on it is pressed and held. This NETSECURE Code will have to be entered in addition to your login ID and password to login to iConnect. Every NETSECURE Code expires after 50 seconds and you have to generate a new code to login.
#2FA stands for Two Factor Authentication. This is an enhanced process to further secure your access and
usage with iConnect. The 1st factor is "what you know", ie, your "User-ID", "Password". The 2nd factor is
"what you have", which is the Security Token – either through SMS or web PIN or a personal security 1-
Touch device we will be issuing to persons who opts for this to access iConnect. Used in combination, these
two factors will provide greater peace of mind in performing banking transactions over the Internet.
BANKING AWARENESS TRAINING
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BANKING AWARENESS TRAINING
eShop Card is a Virtual Credit Card launched by Axis Bank. You can create your own eShop Card using your existing Axis Bank Credit Card. This eShop Card can be used to shop online at all merchant websites.
1. The actual Credit Card number is never used on the merchant website. Therefore, eShop Card is the most secure way to make online payments and to shop online, without the risk of exposing your Credit Card to fraud.
2. The eShop Card can be created with an amount up to your available card limit. 3. The eShop Card is valid for a maximum of 48 hours. 4. The eShop Card can be used at any online merchant site that accepts Visa Cards. 5. At the end of the validity period of the eShop Card, the unutilised amount is credited back to your Credit Card
account.
Verified By Visa(VBV) is an easy to use, secured online payment service from Axis Bank that lets you shop securely online with your existing Axis Bank Credit Card. This service through a simple checkout process, confirms your identity when you make purchases on the Internet.
Through a personal assurance message it also reassures you of the authenticity of the online store.
Verified By Visa(VBV)/MasterCard SecureCode is an easy to use, secured online payment service from Axis Bank that lets you shop securely online with your existing Axis Bank Debit Card. This service through a simple checkout process, confirms your identity when you make purchases on the Internet.
Through a personal assurance message it also reassures you of the authenticity of the online store.
E-Statement
Help a needy child...
Axis Bank offers the facility of E-Statement. E-Statement are secure and electronic way to receive statement of accounts from the Bank. You can now register for this facility and allow us to help a needy child. Axis Bank donates a notebook to a needy child for every e-statement registration.
▫ Prompt delivery ▫ Person specific delivery ▫ No hassle of physical record maintenance ▫ Monthly statements
on email id within a week of the following month ▫ Password protected for security
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BANKING AWARENESS TRAINING
Payment and Settlement Systems
THE banking sector has been witnessing a remarkable transformation over the last eight-nine years. Technology
adoption has changed the way one banks these days, with ATMs and credit cards, ECS, RTGS, NEFT facilitating
anytime, anywhere, banking. And with the proposed ‘India Money Online’ from National Payment Corporation of
India (NPCI) money transfer will be 24x7 in the near future. How does it work ?.
The medium, INdian FInancial NETwork [INFINET] is the communication backbone for the Indian Banking and
Financial Sector. All Banks, Public Sector, Private Sector, Cooperative, etc., and the premier Financial Institutions in
the country are eligible to become members of the INFINET. The INFINET is a Closed User Group [CUG] Network
for the exclusive use of member banks and financial institutions, spread across 300 cities for now.
The carrier, the Structured Financial Messaging System (SFMS) is built on the lines of SWIFT but has many more
utilities to offer. The major advantage of SFMS is that it can be used practically for all purposes of secure
communication within the bank and between banks. The intra-bank part of SFMS, which is most important, can be
used by the banks to take full advantage of the secure messaging facility it provides.
The Identifier, Indian Financial System Code (IFSC) is an alpha numeric code designed to uniquely identify the
bank-branches in India. This is 11 digit code with first 4 characters representing the banks code, the next character
reserved as control character (Presently 0 appears in the fifth position) and remaining 6 characters to identify the
branch.
The Modes of Transfer
Electronic Clearing Service (ECS) is a mode of electronic funds transfer from one bank account to another bank
account using the services of a Clearing House. This is normally for bulk transfers from one account to many accounts
or vice-versa. This can be used both for making payments like distribution of dividend, interest, salary, pension, etc.
by institutions or for collection of amounts for purposes such as payments to utility companies like telephone,
electricity, or charges such as house tax, water tax, etc or for loan installments of financial institutions/banks or
regular investments of persons. There are two types of ECS called ECS (Credit) and ECS (Debit). ECS (Credit) is used
for affording credit to a large number of beneficiaries by raising a single debit to an account, such as dividend,
interest or salary payment. ECS (Debit) is used for raising debits to a number of accounts of consumers/ account
holders for crediting a particular institution.
Real Time Gross Settlement (RTGS) system, introduced in India since March 2004, is a system through which
electronic instructions can be given by banks to transfer funds from their account to the account of another bank. The
RTGS system is maintained and operated by the RBI and provides a means of efficient and faster funds transfer
among banks facilitating their financial operations. As the name suggests, funds transfer between banks takes place
on a ‘real time’ basis. Therefore, money can reach the beneficiary instantaneously and the beneficiary’s bank has the
responsibility to credit the beneficiary’s account within two hours. The minimum amount to be remitted through
RTGS is Rs.1 lakh. There is no upper ceiling for RTGS transactions. The beneficiary bank has to credit the beneficiary's
account within two hours of receiving the funds transfer message.
National Electronic Funds Transfer (NEFT) system is a nation wide funds transfer system to facilitate transfer of
funds from any bank branch to any other bank branch. There is no minimum or maximum amount that can be
remitted under NEFT.
NEFT is an electronic payment system to transfer funds from any part of country to any other part of the country and
works on Net settlement, unlike RTGS that works on gross settlement and EFT which is restricted to the fifteen
centers only where RBI offices are located, and is now used for Government transactions only.
Speed Clearing refers to collection of outstation cheques through the local clearing. It facilitates collection of cheques
drawn on outstation core-banking-enabled branches of banks, if they have a net-worked branch locally. As of now,
outstation cheques are paid through two channels viz. on Collection basis or through National Clearing (Inter-city
Clearing). This requires movement of cheques from the Presentation centre (city where the cheque is presented) to
Drawee centre (city where the cheque is payable) which elongates the realisation time for cheques. Speed Clearing
aims to reduce the time taken for realisation of outstation cheques.
RBI plans new Payment Systems – New and feature rich RTGS system, India MoneyLine – A
24×7 system for one-to-one funds transfers, India Card – A domestic card initiative, rival to Visa and MasterCard,
Redesigning ECS to function as a true Automated Clearing House (ACH) for bulk transactions, Mobile payments
settlement network. For details visit http://rbidocs.rbi.org.in/rdocs/PublicationReport/Pdfs/VIS01092009.pdf
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BANKING AWARENESS TRAINING
R E T A I L AS S E T PO R T F O L I O
Retail asset portfolio consists of those products, which fetch the bank income through interest. i.e. loans. Given below
is an array of products, which the retail assets portfolio of our bank consists of:
� Mortgage Loans – Loan Against Property
� Vehicle Loans – Power Drive
� Personal Loans – Personal Power
� Home Loans – Power Home
� Other Retail Products (Loans against securities, Medical Equipment, Study Power, TOD to salary account
holders)
� Consumer Loans – Consumer Power
� Loan Against Shares – Empower
� Loan Against Mutual Funds
L I A B I L I T Y PR O D U C T S
Savings Bank Accounts
Easy Access Account Zero Balance Account Prime Savings Account
Smart Privilege Account Senior Privilege Account Salary Power
� Information regarding Finacle Helpdesk numbers, Job Card, and Finacle help regarding different
menus, functions and options are available on Silk Route site. Also Finacle10 CBT
� Silk Route is available through Finacle by using menu option SILK.
� Silk Route can be accessed through Nishchint -> MicroSites ->Silk Route
Government Business Module:
� GBM is used for tax collection and pension disbursement.
� Government Business Module is available through Finacle by using menu GBM.
Suraksha:
� As Finacle does not have a "Locker Allotment Module", "Safe Deposit Locker Management
System" has been developed, which is used for monitoring the leasing of lockers to the
customers. Locker Module is available through Finacle by using menu LOCKMAN.
Charges Management:
� This module is used to get the details about charges applied on various customer accounts and
available to branches though Finacle using menu CHRGMAN.
Our Bank Circulars
� http://iim.axisb.com/iim/ for all our internal circulars.
Knowledge Portal
� http://10.2.17.134/k%40axis/: Access to Products, Processes and Promotions information.
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BANKING AWARENESS TRAINING
Appendix II : B A N K ' S DR E S S C O D E F O R B R A N C H E S A N D R AC S
Officers at all levels are representatives of the Bank and the dress, grooming and personal hygiene of our officers affect the impression of the public towards our Bank. Officers are, therefore, expected at all times to present a professional and businesslike image to customers, visitors, co-workers and vendors. In this regard, it has been decided to adopt the following dress code in the Bank.
Men - should be attired in full-sleeved shirts of pastel colours in either solids or subdued stripes or
checks. Trousers should be formal and darker than the shirt - preferably black, dark blue, brown, grey or charcoal. Shirts and trousers should be well co-coordinated. A necktie should be worn during customer hours and for all official engagements. This would be compulsory in metro / urban locations and voluntary for staff in semi-urban / rural locations, service branches, currency chests and ATM nodal cells. At all times, shirts should be fully buttoned and tucked-in. Sleeves should not be rolled up during business hours. Belts and shoes may be black or brown and should be of the same colour. Sandals should not be worn. Socks should match the colour of the trousers.
Jackets and business suits may be used for formal occasions and while interacting with corporate clients.
Women - Saree or salwar kameez or formal western wear (dark trousers / skirts and sober
coloured shirts / blouses with simple details) should be worn. Heavy, ornate designs or large floral designs should be avoided. Cottons, polycots or silks would be the preferred fabrics. Footwear should match the attire. Fancy footwear should be avoided.
General :
1. Hair should be neatly trimmed or arranged, regardless of length by lady officers. Similarly, male officers should maintain hairstyles, beards, moustache and sideburns as appropriate for a professional corporate environment.
2. Wrinkled or unpressed clothes should not be worn to office.
3. Footwear should be clean and well polished. Sneakers, floaters and slippers should not be worn.
4. Excessively tight attire should be avoided as also deep necklines.
5. Heavy / chunky or dangling jewellery and ankle bracelets which make noise should be avoided. Multiple earrings or multiple chains, necklaces should be avoided.
6. Chewing paan, tobacco, gum or smoking in the office premises is prohibited.
7. Nails should be clean and properly clipped.
8. Visible body tattoos and body piercing should be avoided.
9. Deodorants could certainly be liberally used. When perfumes are used, however, the smell should not be overpowering.
10. Bright, gaudy, fluorescent colours in clothes should be avoided.
11. Glittering / fluorescent hair gels / colours should be avoided.
Saturday Dressing
On Saturdays officers may wear formals as above or may opt for "smart casuals" i.e. for men trousers and shirts, which could be full or half sleeved and fully tucked in. Light coloured trousers and dark coloured shirts could be worn on Saturdays. Neckties would be optional. However if there is an official engagement on that day, formal dress code should be followed.
Smart casuals would not include jeans, t-shirts, sneakers, shorts, capries, cargoes, dungarees, low-waist trousers, athletic wear such as track-suits and leisure outfits like kurta-pyjamas.
Formal or informal shoes may be worn. However, sneakers, floaters and slippers should not be worn. Officers are expected to present a neat appearance at all times and are not permitted to wear ripped, disheveled or similarly inappropriate clothing.
Finally it is just as essential that all officers act in a professional manner and extend the highest courtesy to customers, visitors, co-workers and vendors. Last but not the least, wearing a cheerful and positive attitude is essential to our commitment to exemplary customer service.
Compliance
Branch Heads and RAC Heads will ensure compliance of the Bank's dress code. Senior Zonal and Central Office functionaries on branch visits will also observe compliance of the dress code.
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BANKING AWARENESS TRAINING
Append ix III : BA N K I N G C O D E S A N D S T A N D A R D S BO A R D O F IN D I A
The Banking Codes and Standards Board of India (BCSBI) is an independent and autonomous watch dog to monitor and ensure that the Banking Codes and Standards adopted by the banks are adhered to in true spirit while delivering their services. This is a voluntary Code, which sets minimum standards of banking practices for banks to follow when they are dealing with individual customers. It provides protection to customers and explains how banks are expected to deal with customers for their day-to-day operations. The Code has been based on the model evolved by Indian Banks' Association in consultation with Banking Codes and Standard Board of India. The Banking Codes and Standard Board of India would keep a watch on each bank's adherence to this Code.
Our bank has adopted the "Code of Bank's Commitment to Customers. This Code sets minimum standards of banking practices to be followed by our bank while dealing with individual customers. It explains how customers are to be dealt with in their day-to-day operations. The document enshrines the rights of customers in the form of key commitments by our bank to the customers.
The Code represents bank's commitment to minimum standards of service to individual customers in relation to products and services offered by the bank, e.g. Deposit accounts, Safe deposit lockers, Settlement of accounts of deceased account holders, Foreign exchange services, Remittances within India, Loans and advances and guarantees, Credit cards, Internet banking,
In these areas the Code, inter alia, dwells upon Interest rates, Tariff schedule, Terms and conditions governing relationship between the bank and the customer , Compensation for loss, if any, to the customer due the acts of omission or commission on the part of the bank , Privacy and confidentiality of the information relating to the customer , Norms governing advertisements, marketing and sales by banks.
Effective implementation of the above code in letter and spirit would depend on the level of awareness of the staff on the rules and regulations governing banking, obligations, responsibilities, rights of the banker and customer and an overall know-how on the various banking products and services.
The full text of the code is available at http://20.1.135.102/HR/Static/Unstructure/Public/BCSBI%20Code.pdf (we-connect)
Revised Code of Bank’s Commitment to Customers at http://iim.axisb.com/iim/viewinstruction.aspx?id=8230&highlight=
Similarly “Code of Commitment to Micro and Small Enterprises” is also a voluntary Code, which sets minimum standards of banking practices for banks to follow when they are dealing with Micro and Small Enterprises as defined in the Micro Small and Medium Enterprises Development (MSMED) Act, 2006. It provides protection to MSE customers and explains how banks are expected to deal with customers in day-to-day operations and in times of financial difficulty.
The full text of the code is available at http://20.1.135.102/HR/Static/Unstructure/Public/MSE%20CODE.pdf (we-connect)
Please refer to Appendix IV for FAQs – BCSBI MSE Code for further reading.
An independent and autonomous watch dog to monitor and ensure that the Banking Codes and Standards adopted by the banks are adhered to in true spirit while delivering
their service. http://www.bcsbi.org.in
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BANKING AWARENESS TRAINING
A p p e n d i x I V : c o d e o f b a n k ' s c o m m i t m e n t t o m i c r o a n d s m a l l E n t e r p r i s e s F A Q s - M S E
C o d e
1. In what way is the Code of Bank’s Commitment to Micro and Small Enterprises different from the existing regulatory prescription of the Reserve Bank of India and the Government policy framework? The objective of the Code is not to replace the existing regulatory framework but to complement it. Regulations by themselves cannot ensure availability of quality service to all. The Code seeks to achieve this through a positive and voluntary commitment of the bankers to provide easy access to transparent, speedy and efficient banking services. Banks are also committed to provide products and services suiting the needs of MSEs and to consider their financial difficulties sympathetically. 2. Why is the scope of the Code confined to only Micro and Small enterprises? MSEs play a very significant role in maintaining a balanced and sustainable growth of the economy, through employment generation, development of entrepreneurial skills and contribution to export earnings. The Report of the Working Group on rehabilitation of sick SMEs has brought out that this vibrant segment of the Indian economy has been contributing over 39 per cent of the manufacturing sector output, 33 per cent of the national exports and providing employment to nearly 312 lakh people through about 128 lakh units, located in both the rural and urban areas across the country. The Third Census of small enterprises conducted by the Government of India in 2001-02 revealed that 95.5% of Micro & Small Enterprises have been outside the purview of the jurisdiction of financial structure and that there is a critical need to provide banking services to fully exploit the potential of this sector. 3. What are some of the positive features of this Code? Through this Code, banks are committed to make available to MSEs, free of cost:
• A copy of the Code of Bank’s Commitment to MSEs which is their Charter of Rights.
• A checklist of all legal and regulatory requirements along with a simple standardised, easy to understand application form for loan.
Banks are also committed to make available to MSEs information about:
• The interest rates applicable, and the fees/charges, if any, and any other matter which affects MSEs interest, so that a meaningful comparison with those of other banks can be made and informed decision can be taken by you.
• The specific time frames for dealing with MSEs loan application, disbursement, services etc.
• The availability of collateral-free loan.
• The parameters for credit assessment and post disbursement.
• MSEs obligations when you are in financial difficulty and how your bank can help you.
• Nursing sick MSEs and debt restructuring.
• The services that it has committed to give to MSEs.
• The internal procedures for dealing with MSEs complaints.
• The bank’s policy for collection of dues, cheque collection, compensation, grievance redressal, etc.
4. If banks do not implement the Code, what is the recourse left for the customers? All banks have adopted a Model Grievance Redressal policy framed by the IBA. All banks have a set of internal Grievance Redressal Procedures for handling of complaints with given specific time frame consistent with External Grievance Redressal Mechanisms such as the Banking Ombudsman Scheme. The Code even provides that if customers are not satisfied with the bank’s response, they should not be discouraged from escalating the complaints and should be helped to take up the matter with the Banking Ombudsman. Individual complaints are also dealt with by the Customer Service Department of the Reserve Bank of India and if the complaints involve systemic issues, the BCSBI pursues the matter with the banks for rectification of the systemic lapses. 5. What is the measure of compliance of banks with the ‘Code of Bank’s Commitment to Customers’ ? Banks have initiated several positive measures to comply with the provisions of this Code. All banks are now systematically distributing copies of the Code to all their customers. Since this Code is, in a sense, a Charter of Rights of the individual vis-à-vis his bank, this is an important action on the part of the bank to voluntarily empower the individual customer. Also, banks have adopted Model policies for Cheque Collection, Grievance Redressal, Security Repossession and Compensation and these are in public domain. Transparency with regard to charges, fees and interest rates is now apparent and all banks have a tariff schedule in public domain. These are some of the positive features. BCSBI is in continuous dialogue with banks towards achieving greater compliance of the Code in letter and spirit.
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