A SUMMER INTERNSHIP PROJECT REPORT ON

A STUDY OF BANKS COMPLIANCE

OF THE KYC GUIDELINES
PARTICULARLY IN OLD AND EXISTING
ACCOUNTS
PRESENTED BY:
PRAMOD KUMAR
ROLL NO.090101076
Introduction
Reserve Bank Of India has vide their circulars dated 16.8.2002 and 19.9.2002
issued several guidelines on Know Your Customer norms and advised all
banks to follow certain customer identification procedure for opening of
accounts and monitoring transactions of suspicious nature for the purpose of
reporting it to appropriate authority.
The guidelines issued were:
1.Know Your Customer standards
2.Customer Acceptance Policy
3.Customer Identification Procedure
4.Monitoring of Transactions
5.Risk Management
6.Customer Education
7.Introduction of New Technologies
8.Appointment of Principal Officers

Objective of the project
i) To ensure appropriate customer identification.
ii) To monitor transactions of a suspicious nature.
iii) To study the brand image of the bank.
iv) To find out the customers preferences while opening an account.
v) To increase the business of the bank
vi) New accounts should be open strictly on the basis of KYC norms


Research methodology
Primary data source:
The method of collection of primary data was direct personal interview
through a structured questionnaire.
Secondary data source : It was collected from internal sources. The secondary
data was collected on the basis of organizational file, official records,
news papers, magazines, management.
Sampling Plan
Sampling Units : customers
Sampling Technique: Random sampling
Research Instrument: Structured Questionnaire
Contact Method : Personal interview
Sample size: 100 respondents


conclusion
1. Branches of the banks should be advised to exercise due care
to ensure compliance and desist from opening accounts in the
name of banned organizations and those without requisite
registration.
2. All financial transactions records should be retained for at
least five years after the transactions has taken place.
3. Branches of banks are required to report all cash deposits
and withdrawals of Rs.10 lakhs and above as well as
transactions of suspicious nature with full details in fortnightly
statements to their controlling offices.
4.All the services of the bank should be clearly
communicated to the customers.
5.Customers are the king so proper care should
be taken while dealing with them

Suggestions and recommendations
1. Executive should be trained to explain the products feature and its value
added services to make customers product selection convenient.
2. Executives should recommend right product to the right customer so as to
ensure a high degree of satisfaction among the customer
3. The bank needs to make people aware about there products and the basic
benefits they can derive out of it.
4. 70% of the people did not even know about the concept, benefits and
features of its saving accounts.
5. KYC guidelines should be strictly implemented in the banks.
6. The biggest problem with the KYC is the non existence of a unique
identification number for every individual in the country.

Limitations
1. The survey was conducted in a limited area.
2. The survey was conducted with the help of self administered
questionnaire.
3. The respondents were found short of time so the responses may
not real.
4. The respondents were limited so cant be treated as whole
population.
5. All the interpretation and analysis of data is on the basis of the
respondents responses which might be bias up to some extent.
THANKS