The Banking Tutor

Study Material – Promotion 2023

No. 007 22-09-2023

KYC & AML - 03

01. Registration certificate is a OVD in case of Trusts and Foundations.

02. Trust deed is a OVD in case of Trusts and Foundations.

03. PAN number of the Trust is a OVD in case of Trusts and Foundations.

04. For proprietary concerns, in addition to the OVD applicable to the

individual (proprietor), any two documents in the name of the proprietary
concern are required to be submitted as Activity Proof.

05. Introduction is not mandatory for all the accounts, including those of legal
entities.

06. Aadhaar is not mandatory for opening SB account for Individual.

07. We may accept e- KYC service as a valid process for KYC verification.

08. Fresh photographs will be required to be obtained from minor customer

on becoming major.

09. In case a customer categorised as low risk is unable to submit the KYC
documents due to genuine reasons, she/he may submit the documents to the
Bank within a period of six months from the date of opening account.

10. Foreign students have been allowed a time of one month for furnishing
the proof of local address.

11. Banks should impose partial freezing on KYC non-compliant accounts

in a phased manner by giving due notice.
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12. Customers' name should be screened with UN list of terrorist individuals/
entities before creation of new customer ID. If any resemblance is observed,
transactions are to be verified in such accounts and report those accounts
to RBI/FIU-IND.

13. In case proof of address furnished by the customer is not the local
address or the address where the customer is currently residing, the branch
may take a declaration of the local address .

14. Foreign remittance exceeding USD 1000 is not allowed into the accounts
of foreign students, within the period of first thirty days, when local address
is not verified.

15. If the address of the customer mentioned as per proof of address

undergoes a change, fresh proof of address may be submitted to the branch
within a period of six months.

16. PAN or Form 60 are mandatory for opening of accounts other than “small
accounts”.

17. For Low Risk category, KYC requirement of proper identification and
verification on of proof of address would suffice.

18. For medium risk category, higher due diligence is required, which
includes customer's background, nature and location of activity, country of
origin, source of funds and their client's profile etc., besides identification.

19. High Risk category accounts require higher due diligence as per medium
risk category and such accounts require enhanced monitoring on an on-
going basis.

20. Threshold limits are to be fixed as per limits mentioned by customer at

the time of opening the account and review the threshold limits once in 6
months.

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21. Fresh proofs of identity and address need not be obtained at the time of
periodic up-dation from those customers who are categorised as 'low risk',
in case of no change in status with respect to their identities and addresses.
A self-certification by the customer to that effect should suffice in such
cases.

22. In case of change of address of low risk customers, they could merely
forward a certified copy of the document (proof of address) by mail/post, etc.
Branches need not insist on physical presence of such low risk customer at
the time of periodic up-dation.

23. If an existing KYC compliant customer of the bank desires to open

another account in the bank, there should be no need for submission of fresh
proof of identity and/or proof of address for the purpose.

24. To open account for close relatives of low risk customers e.g. wife, son,
daughter and parents etc. who live with their husband, father / mother and
son, the utility bills which are in the name of close relatives can be accepted.

25. Due diligence to be observed wherever notices are returned undelivered.

26. The option of partial freezing is to be exercised after giving due notice
of three months initially to the customers to comply with KYC requirements
and followed by a reminder for further period of three months. Thereafter,
partial freezing should be imposed by allowing all credits and is allowing all
debits with the freedom to close the accounts.

27. If the accounts are still KYC non-compliant after six months of imposing
initial partial freezing, branches should disallow all debits and credits from/to
the accounts, rendering them inoperative.

28. It would always be open to the branches to close the account of such
customers who have not complied with KYC norms.

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29. Non-account based customer, that is a walk-in customer, where the
amount of transaction is equal to or exceeds rupees fifty thousand, whether
conducted as a single transaction or several transactions that appear to be
connected, the customer's identity and address shall be verified.

30. A juridical person has been defined as an Entity, as a firm, that is not a
single natural person, as a human being, authorized by law with dues and
rights, recognized as a legal authority having a distinct identity, a legal
personality.

Sekhar Pariti
+91 94406 41014

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