opening form. Care should be taken to ensure that the account is not opened only to encashDemand Drafts, Pay Orders, Cheques of similar tenor, with ulterior motive.2 (iii)
Obtaining of Photographs
Bank should obtain two recent colour photographs of each of the constituent at the time of opening account and the account should not be opened without a meeting between bankofficial and customer.b)
Photograph of the person authorized to operate the account should also be obtgained.c)
In case of joint accounts and partnership accounts, photographs of all depositors and partnersshould be obtained.d)
In case of deposits in the names of minors, photograph of both guardian and minor should beobtained along with age proof of minors.e)
Signature across the photograph and all signatures on account opening form should be signedunder seal by the officials of the branch.f)
No separate photograph need be obtained for each category of deposit.All the time of opening an account in order to know whether photograph is already with thebranch, the applications of different type of deposit accounts should be properly referred to oneanother mentioning the related account number in the application form. Photographs forsaving Bank Accounts and Current Accounts should be obtained compulsorily and should bereferred to other category of accounts.2 (iv)
Categorisation of Customers.
Based on parameters of risk perception in terms of nature of business activity, location of customer andhis clients, mode of payments, volume of turnover, social and financial status etc. customers should becategorized into low, medium and high risk. For the convenience it can be termed as Level I, Level II,Level III respectively. Customers requiring high level of monitoring are to be classified as PoliticallyExposed Persons-Level IV done at the end of financial year.
Low Risk Customers
Individuals residing/employed within the vicinity of branch and debit or credit summations peryear do not exceed Rs. 2.00 lakh.
Salary Earners Accounts.
Medium Risk Customers
Individual account with debit or credit per year exceeds Rs. 2.00 lakh. For new accounts thismay be ascertained with a meeting with the customer.
Those who reside outside the vicinity of the branch.
All proprietorship and partnership accounts irrespective of area and turnover.
Accounts of Companies and Firms : Branches need to be vigilant and examine the controlstructure of entity, determine the source of funds and identify the natural persons who have