L045

WELCOME TO THE LESSON ON

Compliance in Branch Functions(Other than Advances)

Compliance in Branch Functions(Other than Advances)

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Lesson Objectives

In this first sequel to our earlier lesson on Compliance Policy, we examine

some of the compliance functions for branches, other than those related
to advances.
• Our compliance manual contains a large number of functions which are to
be complied with, by branches.
• In this lesson, some of those functions are listed out, along with the
synopsis of the Bank’s instructions as to how branches should gp about
complying with them.
• You will also find references to the circulars/directions/statutes where
these instructions appear.
• It is our fervent hope that you will not only go through the synopsis, but
also read the circulars so that you will get a holistic idea of the compliance
requirements.
Compliance in Branch Functions(Other than Advances)

1.Business Hours & Customer Service

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Compliance Function Bank’s Instructions

Branch shall be ready for customer For normal branches, the Business hours
service at the starting of the Business will be 10 am to 3.30 pm.
hours. (MOI 1.1.10.8)
All members of staff shall report to work
15 minutes prior to commencement of
business hours in metro, urban and semi-
urban branches. They shall be ready to
offer services from time prescribed for
All staff members shall report to work as commencement of business hours by
per the extant instructions. carrying out preliminary works like
opening the computers, keeping ledgers
or registers ready, keeping sufficient
stock of cash at all cash counters etc.
(MOI 1.1.10.8)
Compliance in Branch Functions(Other than Advances)

2. KYC verification and preservation of4 documents.

• KYC compliance in letter and spirit is

an absolute must. Go for online
i) Online verification of KYC documents verification of KYC documents
(Cir Vig/3305/2013 dt 7.6.2013)
(Voters’ ID and Passport etc) by
branches using the links provided in •Check KYC documents online,
Drisya. wherever possible/applicable. Online
verification of PAN and UN List will be
done centrally (Cir OPD/7343 dt 21.8.17)
• After completing the electronic
record making process , the
All the AOF along with KYC documents documents(AOF,CIF,KYC documents
etc) should be filed in the numeric
are kept in fire proof steel cabinets in
order of custid in a folder and kept
safe custody safely in a fireproof cabinet under joint
custody.
(MOI: 1.2.18.17)
Compliance in Branch Functions(Other than Advances)
3. Current Account Opening
In the case of current accounts opened,
either a declaration has been obtained
from the customer to the effect that
the account holder is not enjoying any
credit facility with any other bank or no
objection certificate has been obtained
from the existing lending bankers or
instructions to this effect are complied
with.
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• Obtain declaration stating that the
customer is not enjoying credit
facilities from any other bank.
•If enjoying credit facility, request for
and obtain a no objection certificate
from that bank.
•If no response is received from the
existing banker, we may proceed to
open the account, if we are satisfied
with the due diligence done on the
customer.
(MOI 4.1.3.6, 4.1.3.7)
Compliance in Branch Functions(Other than Advances)

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4. Authorizing Opening of New Accounts

• An authorised employee ....... shall

sign the AOF, application for channel
facilities and specimen signature sheet
in evidence of verification and pass on
the documents for approval.
•Principal Officer shall verify the
All the new accounts opened shall be
documents and the customer and if
authorized by the Branch Manager or the customer is found eligible, shall
the official- in- charge of concerned approve the request for opening an
deposit accounts section. account.
•Such approval should be evidenced by
affixing full signature on AOF and
other documents in the appropriate
places
(MOI: 4.1.3.13 & 14)
Compliance in Branch Functions(Other than Advances)

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5. Sale of Third Party Products

• KYC documents as prescribed by the insurance

company, fund house etc shall be obtained and filed.
•If the application form and KYC documents are
Sale of Third Party
transmitted to the insurance company/fund house, a
Products - Branch has
copy of the same shall be kept in file.
ensured KYC
requirements and copy • For sale of pure gold and India Gold Coins, and
of application, KYC insurance, cash shall not be accepted for transactions
documents etc properly of Rs. 50000 or more.
preserved for future • Features of the products shall be fully explained to
verification. the customer. Only need based products shall be
recommended to the customer
• officials selling the products shall have acquired the
qualifications prescribed by SEBI, IRDA etc
(RBD circular No. 7223 dated 10.07.2017)
Compliance in Branch Functions(Other than Advances)

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6. Opening FCRA account and crediting remittance from foreign sources
• FCRA 2010 provides that persons having definite
cultural, economic, educational, religious and social
programmes shall get themselves registered with the
Government of India, before accepting any ‘foreign
Statutory requirements under contribution’.
Foreign Contribution
•Before receiving foreign contributions into accounts of
(Regulation) Act, 2010 and the
such persons , ensure that:
relevant Rules shall be complied
with while opening accounts of ✓The person/organization holds a valid registration
specified certificate or has received prior permission from the
organizations/associations and Government of India u/s 12 of FCRA for receiving foreign
allowing credits from foreign contributions.
sources. ✓The account with us is the one which is designated to
receive the foreign contribution.
✓No funds other than foreign contribution shall be
received or deposited in the account.
✓(RBI Master Circular on FCRA 2010)
Compliance in Branch Functions(Other than Advances)

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7. Cash Operations

Cash/ foreign • Principal Officer, where he is not a joint

currency
balance verified and found custodian of cash, shall verify the entire cash, at
correct. Proper maintenanceleast once in a month at irregular intervals,
of cash operating register,
without prior notice. As a record of such
checking & verification of
cash by cash officer and verification, he shall write “ verified the entire
principal officer cash” in the cash stock cum operations register
under his full signature. (MOI 2.5.15)
• Joint custody means receiving valuables after
verifying the number and quality of the securities
Joint custody is effective (cash, gold, safe custody items, other securities
while handling cash, gold,
etc) , keeping them in dual control storage (in
safe custody items, other
securities etc. cabinets, safe, strong room etc under lock & key)
and jointly releasing them when required to meet
the business needs of the Bank. (MOI 2.5.3.2)
Compliance in Branch Functions(Other than Advances)

8. ATM Operations
Cash balance is verified and •Offsite ATM- Physical cash verification to be
found correct.
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• Onsite ATM – Physical cash should be verified on
each cash loading day. Excess/shortage or any
other discrepancy shall be reported to ATM
Monitoring Cell on the same day itself.
done twice in a month (fortnightly) choosing
random days of the fortnight.
•ATM cash loading register to be maintained at all
ATM sites. (Operations Cir. 4257 & 4322)
•Cash loading in ATMs shall be in the presence of
joint custodians.

Joint operations are ensured •ATM Combination Chest passwords shall be held
while loading cash separately by ATM officer and joint custodian and
activities involving opening and closing of ATM
chests shall be invariably in the presence of ATM
officer and Joint Custodian. (Op/5449 dt 18.11.15)
Compliance in Branch Functions(Other than Advances)

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8A. ATM Operations
•ATM chest combination passwords shall be
stored separately in sealed envelopes and kept
under joint custody.
•Joint custodians must change their passwords
on a quarterly basis. They shall not share or
Password maintenance is divulge the password, not even to the ATM
effective service engineer.
• Passwords suspected to have been
compromised shall be changed immediately.
Passwords shall not be stored in readable format
on any device. (Op cir 967 dt 5.11.2009)

• Replenishment of cash in ATM – Make entry in

Cash taken out from branch
is entered in Cash-in-transit cash-in-transit register.
register •Ensure that the entries are authenticated by
respective employees. (MOI 3.9.6.1)
Compliance in Branch Functions(Other than Advances)

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9. Staff Meeting/Officers’ Meeting

Principal Officer of the branch shall:

• Organize periodic staff meetings whereby every
member of staff gets an opportunity to air
suggestions for achieving the goals and to
consider work related problems in a cordial
atmosphere. Customer complaints received shall
Conducting staff/officers’ be discussed and strategies to avoid customer
meeting as per internal complaints chalked out. Marketing strategies,
instructions and maintaining
new and existing products, various campaigns etc
minutes
shall be discussed in such meetings.
• Organize Officers’ meeting at least once in a
month to assess the functioning of various
sections under them and resort to corrective
measures, if required. (MOI 8.4.4.38)
Compliance in Branch Functions(Other than Advances)

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10. Withdrawal Forms
• Withdrawal forms, received from the printer/HO shall be
stamped with the branch name and stored under joint
custody.
•On start of every working day, joint custodians shall issue
a book of withdrawal forms for use in the branch. After
business hours, the book with unused leaves shall be
Compliance with returned to joint custody.
instructions
regarding issuance • Withdrawal form may be issued to an account holder on
of withdrawal forms request and production of pass book. Account number
to customers shall be recorded in the withdrawal form before issuing.
•Ensure that the form is used only to withdraw cash from
the personal account of the customer. Also ensure that
payment is made to the customer only and not to any
third party. (MOI 3.1.28)
Compliance in Branch Functions(Other than Advances)

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11.Office Order book & POA/Signing Power documents
• An Office Order Book shall be maintained in each
branch. The Principal Officer and employee in
charge of administration are responsible for its
maintenance.
•The Officer Order Book shall contain separate folios
Adherence to norms on for (1) allotment of work, (2) list of staff members,
Office Order and (3) custody of essential keys, (4) custody of non-
preservation of officers’ essential keys and (5) custody of passwords...........
Power of Attorney/
Signing Power documents (MOI 1.1.15 to 1.1.17)
• Power of Attorney and Signing Power documents
in respect of officers working in the branch shall be
kept in joint custody, after recording in safe custody
register. When an officer is transferred, these
documents shall be sent to the transferee branch
and acknowledgement obtained. (MOI 1.1.22.7)
Compliance in Branch Functions(Other than Advances)

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12. Cash Vouchers
• Affix full signature at the specific place in the
All cash paid and receipt voucher and counterfoil or a receipt, if any,
vouchers shall be signed evidencing accuracy and completeness of voucher,
by cashier and passing and confirmation of custody of cash equivalent to
official. the amount of voucher . Brand the voucher and
counterfoil or a receipt, if any, with Cash Received
Date stamp of relevant date. (MOI 2.1.10.3)
Date stamp – (cash •Affix full signature and Cash Paid Date stamp of
received/paid) affixed on relevant date substantiating delivery of cash
all vouchers equivalent to the amount of voucher (MOI 2.1.12.6)
•Affix full signature in evidence of passing the entry
(MOI 2.1.13.1)
•The cash paid vouchers should be kept in strong
Keeping of cash paid room in double lock cabinet under joint custody duly
instruments in safe kept in a properly sealed envelope. The envelope
custody on a daily basis should contain proper description like date, number
of vouchers, etc. with due authentication of joint
custodians. (MOI 2.1.27.5)
Compliance in Branch Functions(Other than Advances)

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13. Obtaining Form 15 G/15H & marking in Finacle
• Form 15G/15H, duly filled in, shall be got signed by
eligible customers and marked in Finacle.
• For opening Term Deposit using a Cust ID with
15G/15H not already marked in CRM module, details
may be captured through CRM->General Details->
Instructions with regard Basic Info.
to obtaining Form 15H/15G
• Branch shall generate 15G/H report from FBLREP->
and marking in Finacle to
generate and upload to General ->090. Report will be generated in HPR
Income Tax Department menu.
•When 15H is submitted by Super Senior Citizens of
age 80 years and above, use the TDS table code
TDSHS to mark the same in Finacle.
(SQD Circular 6470 dated 07.10.2016)
Compliance in Branch Functions(Other than Advances)

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14. Preservation of files, documents, title deeds, books & registers

•Instructions regarding maintenance and

preservation of old records - MOI 1.9.1
•Minimum retention period of records – MOI 1.9.3
•Retention period for ledgers/registers – MOI 1.9.4
Files, documents, title
•Paid instruments and vouchers – MOI 1.9.5
deeds, books and
registers to be preserved •Files, including in electronic media – MOI 1.9.6
as per Bank’s internal •Instruction on filing - MOI 1.9.7
guidelines for various
operations. •Filing Index – MOI 1.9.8
•Preservation of records required as evidence – MOI
1.9.9
Compliance in Branch Functions(Other than Advances)

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15. Nomination in eligible accounts/locker/safe custody items
• We shall advise a person making a deposit/hiring a
locker /depositing articles in safe custody to make a
nomination or add a joint names with survivor
clause.
•If the customer declines to make a nomination, we
Nomination registered in may get a letter from him saying that he does not
all accounts/locker/safe want to make a nomination or add joint names.
custody items as per
prevailing instructions •In case he refuses to give such a letter, we may
record the matter in the application for deposit/safe
custody/locker, before proceeding to process the
application.
•However, we shall not refuse to extend the facility
for the sole reason that the customer is not
interested in nomination. (MOI 1.5.1.9-10)
Compliance in Branch Functions(Other than Advances)

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15A. Nomination in eligible accounts/locker/safe custody items
• Keeping a record of Nominations and cancellation
or variation of nominations is a statutory obligation.
•Branches shall maintain a Nomination Register. All
nominations received shall be entered in the
register in the order in which they are received, duly
Nomination registered in authenticated by an authorized official. The register
all accounts/locker/safe should have columns to note cancellation or
custody items as per variation of nomination.
prevailing instructions
•When a request for variation of nomination is
received, appropriate note shall be made in the
original nomination entry and a fresh nomination
entry shall be made in the Register.
• Nomination register shall be kept in joint custody
and only authorized officials shall have access to it.
(MOI 1.5.19)
Compliance in Branch Functions(Other than Advances)

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15A. Nomination in eligible accounts/locker/safe custody items
• With effect from 02.01.2019, the requirement of
having to keep physical nomination register has
been discontinued.
• For nominations received from 02.01.2019, a digital
record is to be maintained.
Nomination registered in • However, duly signed Nomination Form (DA1)
all accounts/locker/safe
must be obtained from the customer.
custody items as per
prevailing instructions • A unique number will be generated for all such
nominations registered. The Digital Nomination
Register is available through Drisya -> CBS Reports -
> Downloads -> Branch Downloads -> DLBR216.
• If an existing nomination is to be modified, the
existing nominee details are to be deleted and new
nominee details shall be added as a new record.
Compliance in Branch Functions(Other than Advances)

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16. Advance against NRE/FCNR Deposits

While granting advance

against FCNR/NRE
deposits, the non-
availability of premature
withdrawal facility of
NRE/FCNR deposits
against which loan is
availed of is specifically
brought to the notice of
the deposit holder at the
time of sanction of the
loan and undertaking
/declaration obtained.
•Facility of premature withdrawal of the NRE/FCNR
deposit shall not be available where loan against
such deposits are to be availed of. This requirement
may specifically be brought to the notice of the
deposit holder at the time of sanction of the loan.
(Forex Cell circular no. 2877 dated 27.10.2012)
•A written undertaking to that effect may be
obtained from the customer.
(Fed Infopoint – AAD – Master Circular)
Compliance in Branch Functions(Other than Advances)

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17. Allotment of Safe Deposit Lockers
Compliance to the regulatory •“Linking locker facility with placement of fixed
guidelines for allotment of or any other deposit beyond what is specifically
safe deposit lockers: permitted is a restrictive practice. We advise
i) At the time of allotment, banks to refrain from such restrictive practices.
fixed deposit is obtained •Banks may, at the time of allotment obtain a
covering 3 years rent and fixed deposit which would cover 3 years’ rent
charges for breaking and charges for breaking open the locker, in
open the locker in case of case of an eventuality.
an eventuality (need not • ......ensure that the identification code of the
insisted from the existing bank/branch is embossed on all the locker keys
locker hirers). to facilitate identification of the ownership of
ii) Prevailing locker rentals to locker keys.”
be displayed on the notice
(RBI/DBOD/Leg.BC.78/09.07.005 dt 17 .4.2007)
board.
Compliance in Branch Functions(Other than Advances)

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18. Embossing Bank code on locker keys etc
(i) Bank’s identification code • ......ensure that the identification code of the
indicating Bank and the bank/branch is embossed on all the locker keys
Branch is embossed on to facilitate identification of the ownership of
locker keys. (080 along locker keys.” (RBI/DBOD/BC.78/09.07.005 dt 17
with chronological .4.2007) (our bank code is 80, followed by
number of the branch) chronological no: of the branch)
•Before close of office hours every working day,
(ii) Maintenance of Safe the authorized employee shall inspect the vault
Deposit Locker Inspection area and lockers for any lost articles, open
Register and daily locker or any damage to locker, vault etc.
certification by the authorized •A certificate shall be recorded in the locker
official for verification of inspection register with appropriate narration
lockers operated during the like “ verified the lockers operated during the
day as per the extant day and found them properly locked and no
instructions. articles left in the area.
(MOI 7.2.3.2)
Compliance in Branch Functions(Other than Advances)

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19. Magnifying glasses to be available in branches

•Magnifying glasses to be made available at all

Magnifying glasses are branches for the use of persons with low vision,
provided in the branch and wherever required, for carrying out banking
notice exhibited to this effect transactions with ease.
on notice board. •A notice shall be displayed at a prominent place
inside the branch premises notifying the
availability of the magnifying glass.
(Circular CSD/5876/2016 dated 4.4.2016)
Compliance in Branch Functions(Other than Advances)
20. ATM Cards
ATM/Debit Cards pending for
issue for more than six
months after registration are
destroyed in the presence of
joint custodians under the
supervision of the Principal
Officer.
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•Cards pending for issue for more than 6(six)
months after registration are destroyed in the
presence of joint custodians and under the
supervision of the Principal Officer.
• The details of destroyed cards shall be
recorded in the ATM Card Issue Register and
signed by the Joint Custodians and the Principal
Officer.
•The actual number of cards in possession of the
branch shall be reconciled with the number of
received but non-issued cards as per the ATM
card Issue Register on a daily basis.
(Cir no. 71/Vig/ATM/07 dt 4.6.2007)
Compliance in Branch Functions(Other than Advances)

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21. Reporting Breach of Compliance

•Branches shall submit the Report on Breach of

Submission of return on Compliance (RBC) to the zonal office concerned
Breach of Compliance (RBC) as and when a breach of compliance occurs/is
as and when breaches noticed in the branch.
occurred/noticed to •It would also be the responsibility of the
Compliance Department Compliance Monitoring Officer of the branch to
ensure that breaches/non-compliances are
reported to the controller
(Compliance policy 2017 – 6.10.3)
Compliance in Branch Functions(Other than Advances)

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22. Daily Exceptional Report & Day Book

•Principal Officer shall scrutinize exceptional

report on a daily basis and take corrective steps
whenever required and action so taken shall be
recorded in the exceptional report itself and
Daily exceptional report and filed. Matters which require reference to
day book to be verified and Regional Office or Head Office shall be reported
signed by Principal Officer. then and there. (MOI 8.4.4.11)
•Principal Officer should scrutinize DBTB report
on a daily basis. (MOI 8.4.4.12)
Compliance in Branch Functions(Other than Advances)

23. Periodic KYC review 28

• Periodic updation of KYC information to be

Re-confirm KYC of customers done, depending on the risk profile of the
every two/eight/ten year customer.
period for high risk/medium •Low risk – once in 10 years, Medium risk – once
risk/low risk categories in 8 years & High Risk – once in 2 years.
respectively by calling for
• For Medium and High risk customers and also
fresh set of KYC documents
Low risk customers whose accounts are
such as latest photograph,
dormant, fresh proof of identity and address
address proof, ID proof etc.
shall be collected at the time of KYC updation.
and also by verifying the
profile of the customer. • It is not necessary to seek fresh ID/Address
Update KYC afresh in the proof or insist on physical presence for Low risk
system by invoking CRM customers (with active accounts), if there is no
Module change in identity and address. A self
certification by the customer is enough.
(KYC/AML/CFT Procedures 2017-18: 3.i &ii)
Compliance in Branch Functions(Other than Advances)

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24. When a minor account holder attains majority.
• On attaining majority, the erstwhile minor
should confirm the balance in the account and if
Obtention of fresh the account is operated by the natural guardian
/ guardian, fresh specimen signature of
documents, operating
erstwhile minor duly verified by the natural
instructions and specimen guardian should be obtained and kept on record
signature of erstwhile minor, for all operational purposes. KYC norms should
in cases of minor accounts be complied with by obtaining necessary
where the minor attains documents. (MOI: 1.3.6.7)
majority and the account is
operated by the natural / legal • At the time of periodic updation, if the minor
guardian. has become major, Bank shall obtain OVDs/
additional details and recent photograph of the
customer to update the current status.
(KYC/AML/CFT Procedures 2017-18: 3.v)
Compliance in Branch Functions(Other than Advances)

25. Addition/deletion of names in joint30accounts.

• Addition/Deletion of names of joint account holders
(in individual accounts) may be done on a written
request of all existing account holders.
• All account holders after the change must agree to
the terms and conditions of maintaining the account.
• Customer Due Diligence (CDD) of the existing and
Requests for addition / deletion new customers shall be carried out.
of names of joint account holders • Whether it is addition, deletion or substitution, the
are permitted after close scrutiny. existing first account holder shall continue as the
primary account holder even after the change, except
in a contingency like death of the depositor.
•If primary account holder has to be changed, the
account shall be closed and a new account opened.
• Principal Officer shall sanction the request after
considering all rules and regulations in this respect.
(MOI: 4.1.8)
Compliance in Branch Functions(Other than Advances)

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26. Collection of Account Payee Cheques

• Account Payee cheques for any person other

than the payee constituent shall not be
collected.
Account payee cheques are
• Branches shall collect account payee cheques
not collected for any person
drawn for an amount not exceeding Rs. 50000
other than the payee
to the account of their customers who are co-
constituent; except where
operative credit societies, provided the payees
relaxation is permitted.
of such cheques are the constituents of such co-
operative credit societies.
(KYC/AML/CFT Procedures 2017-18: 7.12)
Compliance in Branch Functions(Other than Advances)

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27. Cheque Drop Boxes

• “We may provide a drop box facility to enable

you to deposit cheques to be sent for collection.
Customers shall not be Necessary precaution will be taken to ensure
compelled to drop their that cheques deposited in the drop box are
cheques at the drop box, but properly and promptly accounted for.
at the same time all the
guidelines applicable to drop- • However, you may, if you so desire, hand over
box are complied with. cheques at the counter against
acknowledgement instead of depositing in the
drop box”.

(Code of Bank’s Commitment to Customers:

8.2.a)
Compliance in Branch Functions(Other than Advances)

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28. Transactions in newly opened accounts

Official-in-charge of the •Newly opened accounts should be kept under

deposit section shall keep a
close watch on new deposit
accounts for first three
months
close watch by the authorized official for an
initial period of 3 months, against possible
doubtful or fraudulent transactions.
•(MOI: 4.1.73.26)
Compliance in Branch Functions(Other than Advances)
29. Overdrafts in SB accounts
Overdraft limits on a regular
basis is not permitted in
Saving Bank accounts.
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• Overdrawing in SB a/c shall be allowed only on
emergent situations, to good clients, and not as
a regular practice.
• Written request, supported by DPN and under-
taking to regularize the account within a
stipulated date must be taken.
• The facility shall not be allowed in the account
of minors, staff members, charitable or religious
institutions, clubs, societies etc.
• In case of joint accounts, all account holders
must request and sign the DPN & letter of
undertaking.
•The account should be got regularised with the
expected credit, within a maximum of 20 days.
Further reading (AR Circular 42)
Compliance in Branch Functions(Other than Advances)

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30. Repayment of deposits exceeding Rs. 20000
• No branch of a banking company ............shall repay any
loan or deposit made with it otherwise than by way of an
Confirm that
account payee cheque or account payee draft drawn in
repayment of
deposits (together the name of the person who has made the loan or
with interest, if any)deposit if the amount of loan or deposit together with
amounting tointerest if any, payable thereon or the aggregate
Rs.20,000/- or more amounts of the loans or deposits held by such persons
has been made only with the branch in his own name or jointly with any other
by credit to the
person........ together with interest is twenty thousand
account of the payee
rupees or more.
or by an account
payee cheque/ draft. • ..........such repayment may also be made by crediting
the amount of such loan or deposit to the savings bank
account of the person to whom the loan or deposit is to
be repaid
(Sec 269(T) of Income Tax Act, 1961)
Compliance in Branch Functions(Other than Advances)

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31. Payment instruments exceeding Rs. 20000

• A remittance instrument valuing beyond a

stated limit (present limit being below
All payment instruments, Rs.20,000) shall bear two signatures of two
such as Drafts, Pay Orders different signatories.
and other instruments like
guarantees, letters of credit • The drawee Branch shall not refuse payment
and co-acceptance of bills for of a remittance instrument for the sole reason
Rs 20,000/- and above shall be that the instrument is authenticated by only one
signed by two officers. authorized employee.
(MOI 3.5.9.5)
Compliance in Branch Functions(Other than Advances)

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32. Issue of DD etc for value of Rs. 50000 and above

Demand drafts, pay orders, • Any remittance of funds by way of demand

RTGS, NEFT and travellers
cheques for Rs 50,000/- and
above are issued only by debit
to the customer’s account or
against cheques or other
instruments tendered by the
purchaser and not against
cash.
draft, mail/telegraphic transfer, NEFT, IMPS or
any other mode and issue of travellers’ cheques
for value of Rs. 50000 and above shall be
effected by debit to the customer’s account or
against cheques only and not against cash
payment.
(KYC Policy 2017: 8.5)
Compliance in Branch Functions(Other than Advances)

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33. ID proof and address proof
‘
• While opening accounts of individuals, branches should
obtain :
a) One recent photograph
Officially Valid b) Certified copy of an Officially Valid Document (as proof
Documents, as of identity and address)
defined under the
PMLA Act, 2002, c) Permanent Account Number (PAN) or Form No. 60, as
are accepted as defined in IT Rules, 1962.
identity and • For joint accounts, these documents must be obtained
address proof for all joint account holders.
from customers
• For non-individual accounts, these documents shall be
obtained from all beneficial
owners/operators/authorized signatories or employees
holding Power of Attorney.
(KYC Procedures 2017: 2.1.1)
Compliance in Branch Functions(Other than Advances)

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34. Address proof

• Customer is obliged to submit only one OVD for both

proof of identity and address as mandatory KYC document.
Customers are • If the current address is different from the address
required to submit mentioned in the OVD, any of the following documents
only one may be accepted, for the limited purpose of proof of
documentary
current address.
proof of address
(either current or 1. Utility bill (not more than 2 months old) 2. Property or
permanent) while Municipal tax receipt. 3.Pension/Family pension
opening a bank payment order. 4.Letter of allotment of
account and / or
accommodation issued to retired employees by
while undergoing
State/Govt Depts, PSUs, Commercial Banks etc.
periodic updation
Customer must submit the OVD with updated current
address within a period of 3 months.
(KYC Policy 2017: 4.3, 4.4)
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40
35. Verification and Stamping of Weighing balance

• Every person having any weight or measure in

his possession, custody or control in
circumstances indicating that such weight or
measure is ...............used or intended to be used
by him in any transaction shall, before putting
Certification of weighing into use, have such weight or measure verified
balance annually at such place and such hours ......as the
Controller may specify.
(Sec 24, Legal Metrology Act, 2009)
Validity
Electronic scale : 12 months
Weights and measures: one year
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41
36. Submission of Internal Control and Compliance Certificate

• Branches, Hubs, Zonal Offices and

Departments /Divisions /National Credit Hub in
Head Office shall submit Internal Control &
Periodic submission of
Compliance Certificate (ICCC) to the Compliance
Internal Control and
Department on a quarterly basis through online
Compliance Certificate (ICCC)
platform.
to Compliance Department.
(Compliance Policy 2017: 6.12.2)
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42
Conclusion

• Our compliance manual lists out the functions which our branches are
expected to comply with, in letter and spirit.
• Though not exhaustive, these aspects cover most of the operational areas
in the day to day functioning of the branches.
• In this lesson we have covered only some important points which
branches should keep in focus, by referencing them to the relevant
instructions issued by the Bank.
• It is expected that branches will not only comply with the points
mentioned in the lesson and compliance manuals, but also all other rules,
regulations and instructions prescribed by the Bank, Regulators and
Statutes.