For the purpose of KYC Policy, a Customer is defined as:

 A person or entity that maintains an account and/or has a business relationship with the Bank;

 One on whose behalf the account is maintained (i.e. the beneficial owner);

 Beneficiaries of transactions conducted by professional intermediaries, such as Stock Brokers,

Chartered Accountants, Solicitors, etc. as permitted under the law, and

 Any person or entity connected with a financial transaction, which can pose significant
reputation or other risks to the Bank, say, a wire transfer or issue of a high value demand draft
as a single transaction.

Why does the Bank ask you for proof of your identity and address?

The identification of a customer is a very critical process with a view to protect the customer interests
by preventing from fraudsters who may use the name, address and forge signature to undertake
benami / illegal business activities, encashment of stolen drafts, cheques, dividend warrants, etc. This
also helps to safeguard banks from unwittingly used for the transfer of deposit of funds derived from
criminal activity or for financing terrorism. Identification of customers will also help to control financial
fraunds, identify money laundering and suspicious activities, and for scrutiny / monitoring of large value
cash transactions.

When does KYC apply?

KYC will be carried out at the following stages:

 Opening a new account

 Opening a subsequent account where documents as per current KYC standards 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 3
 When the bank feels it necessary to obtain additional information from existing customers
based on conduct of the account
 When there are changes to signatories, mandate holders, beneficial owners etc

KYC will also be carried out in respect of non-account holders approaching the bank for high value one-
off transactions.

What is Money Laundering?

Money Laundering refers to conversion of money illegally obtained to make it appear as if it originated
from a legitimate source. Money laundering is being employed by launderers worldwide to conceal
criminal activity associated with it suahc as drugs / arms trafficking, terrorism and extortion. All crimes
that produce a financial benefit give rise to money laundering.

What has this got to do with opening bank accounts?

The first step in the laundering process for criminals is to get their money into an account with a Bank,
often using a false identity and address. The funds so deposited will be transferred to other accounts
locally or abroad or used for buying goods or services. These transactions would appear to be like any
legally earned money and becomes difficult to trace it back to its criminal past. Banks under law should
not only prevent this, but should stop criminals who wish to use the banking channel to launder the ill-
gotten money from illegal / criminal activities.

What documents are collected under KYC?

As per KYC norms, apart from photograph, 2 categories of documents are collected – one is as proof of
identity and other is as proof of residence. Depending on the status of the customer, viz. individual,
trust, HUF etc., different sets of documents are collected. The particulars declared on application forms
should match with those indicated on KYC documents. Given under is the indicative list of the KYC
documents required for various category of customers:
Features List of valid KYC Documents
(i) Passport (ii) PAN Card (iii) Voter’s Identity Card (iv)
Individuals
Driving License (v) Identity Card (subject to the
 Legal name and any other names used
Company's satisfaction) etc.
(i) Utility Bill like telephone, electricity (not older than 3
months) (ii) Bank account statement /Pass Book (iii)
 Address Ration Card (Iv) Letter from employer (Subject to
satisfaction of the Company) (v) Latest Rent / Leave &
license agreement etc.
Companies (i) Certificate of incorporation and Memorandum & Articles
 Name of the Company, Principal place of business of Association (ii) Resolution of the Board of Directors to
 Address of the company open an account and identification of those who have
 Identity of signatories authority to operate the account (iii) Power of Attorney
granted to its managers, officers or employees to transact
business on its behalf (iv) PAN card or copy of PAN
allotment letter (v) Any other officially valid document
establishing proof of existence and address of the entity to
the satisfaction of the Company (vi) Any officially valid
document to identify the signatories (vii) Certificate of
Commencement of Business etc.
Partnership firms (i) Registration certificate, if registered (ii) Partnership
 Legal name and address Deed (iii) Power of Attorney granted to a partner or an
 Identity of all partners and their addresses employee of the firm to transact business on its behalf (iv)
 Identity of signatories Any officially valid document identifying the partners and
the persons holding the Power of Attorney and their
addresses (v) Proof of existence & proof of address of the
firm etc.
Trusts & foundations (i) Certificate of registration, if registered (ii) Trust Deed (iii)
 Identity of trustees, settlers, beneficiaries & Power of Attorney granted to transact business on its
signatories behalf (iv) Any officially valid document to identify the
 Identity and addresses of the founder, the trustees, settlers, beneficiaries and those holding Power of
managers / Directors and the beneficiaries Attorney, founders/ managers/ directors and their
 Identity of signatories addresses. (v) Resolution of the managing body of the
foundation/ association (vi) Any officially valid document
establishing the proof of existence and proof of address of
the entity to the satisfaction of the Company.