SOUND MIND LEADS TO SAFE BANKING

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SOUND MIND LEADS TO SAFE BANKING
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KNOW YOUR CUSTOMER
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What is KYC?

• KYC (Know Your Customer) is a framework for
  banks which enables them to know / understand the
  customers and their financial dealings to be able
  to serve them better.
• All banks have been advised by The Reserve Bank
  of India (RBI) to follow certain KYC Guidelines

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Objectives of KYC

• To enable the Bank to have positive
  identification of its relationship
• Is in the interest of customers to safeguard
  their hard earned money

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When does KYC apply?

• KYC will be carried out at the following stages
• Opening a new account
• In respect of accounts where documents as per
  current KYC standards have not been submitted
  while opening the initial account
• Opening a Locker Facility where these documents
  are not available with the Bank for all the
  Locker facility holders
• When the Bank feels it necessary to obtain
  additional information from existing customers
  based on conduct of account
• When there are changes to signatories, mandate
  holders, beneficial owners etc.
• For non-account holders approaching the Bank for
  high
• value one-off transactions like Drafts,
  Remittances etc.

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Proof needed from customers regarding KYC

• RBI mandates three proofs to be collected from
  customers
• Photograph
• Proof of identity
• Proof of address
• These are to be submitted by the customer both at
  the time
• of opening of account as well as at the time of
  change of
• address.

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Small Deposit Accounts

• Small deposit accounts are those accounts where,
• Balance does not exceed Rs. 50,000/- and
• Annual turnover does not exceed Rs. 1,00,000/-
• Simplified KYC norms prescribed for Small Deposit
  accounts
• Customers can open this type of accounts by
  getting introduced by existing fully KYC
  compliant account as also attestation of address
  / photograph by him.

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Contact Point in Banks for KYC

• Contact point for customers in the Bank will be
  the Relationship Manager / official who opens the
  account and is the contact person during
  transactions

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MONEY LAUNDERING
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What is Money Laundering?

• Money laundering refers to the conversion of
  money illegally obtained to make it appear as if
  it originated from a legitimate source.
• It is being employed by launderers worldwide to
  conceal proceeds of criminal activity associated
  with it, such as drugs / arms trafficking,
  terrorism and extortion.

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Effect on Customers

• For prevention of opening of accounts in false
  identities, Banks have to ask for proof of
  customers identity and address during opening of
  new accounts
• Being asked for these documents does not imply
  that the customers are suspected of money
  laundering
• It is a necessity to identify all prospective
  account holders or customers as anybody including
  a criminal could falsely use another customers
  identity, if the respective documents are not
  obtained.

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What proof of identity will you need?

• Best identification documents are those issued by
  a Government authority, having a photograph,
  address and signature
• One document can be used to establish both
  identity and address, else two or more documents
  will suffice

Some proofs of Identity Address for Individuals Passport Election ID card Driving License Voter ID card Proofs of Identity Address for companies, Trusts, Firms Partnership Deed Trust Deed Memorandum Articles of Association Certificate of Incorporation etc.
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What proof of identity will you need? (Contd.)
Documents used for Identity only for individuals Documents used for Address only for individuals
Pan card ID card of reputed employers Salary Slip Electricity Bill Telephone Bill Ration Card
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Prevention of Money Laundering Act (PMLA) 2002

• Mandates banks to report certain transactions to
  the nominating agency under instructions issued
  by RBI in consultation with the Indian Government
  and Indian Banks Association
• It specifies that,
• Demand drafts, mail transfers and travelers
  cheques for Rs. 50,000/- and above can be issued
  only by debit to customers account or cheque
  etc, and not against cash payment
• Demand drafts, mail transfers and travelers
  cheques for Rs. 50,000/- and above can be paid by
  banks only by credit to customers account or
  through other banking channels and not cash

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Help us to Help You

• By being patient when a Bank staff asks you to
  provide documents to prove your identity /
  address
• By maintaining confidentiality of your account
  details and identity documents

For any further queries, please contact
1800112211 (tollfree from BSNL/MTNL) or
080-26599990.
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THANK YOU