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LOVELY PROFESSIONAL UNIVERSITY

DEPARTMENT OF MANAGEMENT
Report on Summer Training
Know Your Customer
With special reference to
INDUSIND BANK LTD.

Submitted to Lovely Professional University

Submitted by:
Name of the student---University roll no. ----------

DEPARTMENT OF MANAGEMENT
LOVELY PROFESSIONAL UNIVERSITY
JALANDHAR NEW DELHI GT ROAD

PHAGWARA
PUNJAB

DECLARATION

This is to certify that the project report entitled Know Your Customer
with special reference to Indusind Bank Ltd. submitted in partial
fulfillment of the degree of Master of Business Administration in Lovely
Professional University, Jalandhar by Manpreet kaur , university Roll no.
11303066 .has no part of it been submitted for the award of any other
degree and that the work has not been published in any journal, magazine
or book.
.

Date: 05-08-2014
Signature
Place: Kanpur

ACKNOWLEDGEMENT

It is my proud privilege to express a deep sense of gratitude to my


internship supervisor Mr. NITIN KUMAR for his keen initiative, expert and
valuable guidance at every step. Without his guidance and support it
would not have been possible to come this far.

I am very much thankful for precious contribution of MR. ABHISHEK


SHARAN (Branch manager of Indusind Bank Ltd.), Kanpur, who provided
his best help in my training.

PREFACE
We all know that there are different directions in the theoretical and
practical knowledge differs in a great way through its operation and
implementation.Bank is a financial institution, which is a service oriented
as well as Interest orientedorganization.
As a part of it I was really fortunate of getting an opportunity to pursue
my Summer Training in reputed, well established, fast growing and
professionally managed organization like INDUSIND BANK LIMITED.
This report will mainly talk about the KYC (Know Your Customer) and a
short discussion about Indusind Bank. I did a lot of study in department to
get required information. It gave me a great deal of exposure and
practical experience. This practical experience helps the students to view
the real Business World closely.

EXECUTIVE SUMMARY
This Internship report covers the detail of Indusind Bank Ltd. practices
on KYC (Know

your customer) profiling, its variance and the veritable

solution of the problem. I have worked on the Swaroop Nagar Branch of


Indusind Bank Ltd. And my responsibility was at the general banking
section. The main aims of my study are to give a brief idea about KYC.
The Reserve Bank of India (RBI) had issued a directive that banks should
draw up a time bound action plan for obtaining customer identification
documents under new KYC norms respect of all the old accounts and
complete

the

entire

exercise

by

31.12.2004.

Accordingly,

the

Zones/Branches had been advised to comply with the RBI directive as per
the action plan. All the Zones had confirmed compliance of the KYC norms
for all the accounts based on branch confirmations and the final certificate
was furnished by the Bank to the RBI in April, 2005

OBJECTIVE OF THE STUDY

To get the insight of banking and investment operation in an


organizations

Better understanding of how funds are managed in the


organization

An overview of the advantages and disadvantages of the different

sources of funds
An understanding of the factors governing the choice between
different sources of funds.

A portfolio analysis helps optimize investments and locates


relatively productive business opportunities.

Through the analysis, performance of the company over a period


of time can be evaluated thus; plans for the future can be
formulatedTo get the insight of banking and investment operation
in an organizations.

Introduction to
BANKING INDUSTRY
Banking operation of a company involves deposition of cheques for
clearance and issuance of cheques to various parties on the basis of the
bank balance available with the company. They are leaning on banks for
assistance in managing their payables, receivables and other treasury
functions. The types of activities included in banking department are:
Collection and payments through DD, cash, online, cheque
Preparation Bank reconciliation statement
Preparation Fund flow statements
Bank grantee procedure
Letter of credit processing
Cash credit

Investment
An asset or item is purchased with the hope that it will generate income or
appreciate in future. In an economic sense, an investment is the purchase
of goods that are not consumed today but are used in the future to create
wealth. In finance, an investment is a monetary asset purchased with the
idea that the asset will provide income in the future or appreciate and be
sold at a higher price.

The most common terms that are related to different types of investments:

Bond
A debt instrument, a bond is essentially a loan that you are giving to the
government or an institution in exchange for a pre-set interest rate paid
regularly for a specified term. The bond pays interest (a coupon payment)
while it's active and expires on a specific date, at which point the total
face value of the bond is paid to the investor. If you buy the bond when it
is first issued, the face or par value you receive when the bond matures
will be the amount of money you paid for it when you made the purchase.
In this case, the return you receive from the bond is the coupon, or
interest payment. If you purchase or sell a bond between the time it is
issued and the time it matures, you may experience losses or gains on the
price of the bond itself.

Stock
A type of investment that gives you partial ownership of a publicly
traded company .

Mutual fund
An investment vehicle that allows you to invest your money in a
professionally-managed portfolio of assets that, depending on the specific
fund, could contain a variety of stocks, bonds, market-related indexes, and
other investment opportunities.

Money market account


A type of savings account that offers a competitive rate of interest (real
rate) in exchange for larger- than normal deposits.

Exchange-Traded Fund (ETF): ETFs are funds


Sometimes referred to as baskets or portfolios of securities that trade
like stocks on an exchange. When you purchase an ETF, you are
purchasing shares of the overall fund rather than actual shares of the
individual underlying investments.

Introduction of New Technologies- Credit


Cards/Debit Cards/Smart Cards
Banks should pay special attention to any money laundering threats
that may arise from new or developing technologies including
internet banking that might favor anonymity, and take measures, if
needed, to prevent their use in money laundering schemes.
Many banks are engaged in the business of issuing a variety of
electronic cards that are used by customers for buying goods and
services, drawing cash from ATMs, and can be used for electronic
transfer of funds.

Further, marketing of these cards is generally

done through the services of agents. Banks should ensure that


appropriate KYC procedures are duly applied before issuing the
cards to the customers. It is also desirable that agents are also
subjected to KYC measures.

KNOW YOUR CUSTOMER (KYC)


The objective of KYC/AML/CFT guidelines is to prevent banksfrom being
used, intentionally or unintentionally, by criminal elementsfor money
laundering or terrorist financing activities. KYC proceduresalso enable
banks to know/understand their customers and their financialdealings
better which in turn help them manage their risks prudently.
The need increases as external people like general selling agents
introduce a number of customers. Apart from this, in order to develop a
long- term relationship, it is an imperative that the banker knows as much
as possible about his customer.

MONEY LAUNDERING
Money laundering is the process whereby proceeds of crimes such as drug
trafficking, smuggling (alcohol, arms), kidnapping, gambling, robbery,

counterfeiting, bogus invoicing, tax evasion, misappropriation of public


funds and the like are converted into legitimate money through a series of
financial transactions making it impossible to trace back the origin
offunds. Most often, such clandestine deals are the first step in using the
banking system to launder or clean up the cash obtained from trade of
illegal goods or services. Once the money is placed within the Bank, it
goes through an intricate web of transactions, better known as layering
that leave no audit trail. Conversion of this unofficial or black money into
official currency thereby changing its colour is called money laundering.

This is done in three stages described below:


Placement Physically disposing of cash derived from illegal activities.
Layering - Where the depositor does a series of transactions so that
one

can not detect the source or link up with the origin of money

integration.
Integration Placing the laundered proceeds back into the economy in
such

way that they re-enter the financial system as apparently

legitimatefunds.
.

Need for prevention of Money Laundering Activities


To protect Bank from

Reputation Risk.
Operation Risk. (where chances of fraud come to light)
Legal Risk. (Leads to legal battle.)
Concentration Risk. (affects Balance Sheet)
Compliance Risk. (non-compliance leads to penalties)

It is obligatory on each bank as per the Prevention of Money Laundering


Act 2002 to provide Audit trail and to report the Suspicious Activities and
Cash transactions involving Rs.10 lakhs and above to the RBI. Probing of
such transactions and respective customers is to be looked into by the
investigative and law enforcement agencies.

WHAT DOES KYC MEAN?


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. It means that a banker should know his customers.
He should know about their business and as far as possible the nature of
their earnings and their moral standing. This is why it is recommended
that persons known to the bank recommend prospective customers.

CUSTOMER
The term Customer would refer to any person or entity whether a natural
person, a juristic entity, a firm, a trust, an unincorporated association of
persons, acting for itself or in any fiduciary capacity. 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 who is a natural person who ultimately owns or controls a
client and or the person on whose behalf a transaction is executed,
and includes a person who exercises ultimate effective control over
a juridical person).
Beneficiaries

of

transactions

conducted

by

professional

intermediaries, such as Stock Brokers, Chartered Accountants,


Solicitors, etc. as permitted under the law.
Any person or entity connected with a financial transaction which
can pose significant reputational or other risks to the bank, say, a
wire transfer or issue of a high value demand draft as a single
transaction.

PURPOSE OF KYC

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.
Any person or entity connected with a financial transaction which
can pose significant. reputational or other risks to the bank, say, a
wire transfer or issue of high value demanddraft as a single
transaction.

Know Your Customer (KYC) Guidelines by Reserve Bank Of


India
In India, The Reserve Bank of India has been issuing guidelines on KYC
regularly. Some of the more important instructions are mentioned below.
It was instructed:

We have, thereafter, been time and again reiterating the importance

of extremely careful compliance of KYC guidelines.


In spite of these instructions and compliance certificates, instances
of non-compliance of KYC norms have been pointed out by the

RBIAuditors and Internal/Concurrent Auditors.


At every quarterly meeting, the RBI has

been

expressing

seriousconcern over the continue instances of non-compliance of

KYCguidelines.
They had categorically advised that the Bank should adopt
zerotolerance policy in respect of deviation from adherence to KYC
normsin all accounts including existing accounts and confirm

compliance tothem.
It was stated that cash should not be accepted for retirement of
import bills. It was also stated that there must be a reasonable time
(say 6 months) between the time an introducer opens his account
and introduces a prospective account holder. Introduction of an
account should enable the proper identification of the person
opening the account so that the person can be traced if the account

is misused.
Banks were instructed that travelers cheques, demand drafts, mail
transfers and telegraphic transfers for Rs. 50,000 and above should
be by debit to the customers account or against cheques only and

not against cash.


Banks were advised to adhere to the prescribed norms and

safeguards while opening accounts.


In December banks were asked to ensure that when customers
withdrew amounts from their cash credit/ overdraft accounts that
funds were not diverted for the acquisition of fixed assets,
investments in associate companies and acquisition of shares and

other capital market investments.


Banks were asked to be vigilant and ensure proper end use of bank
funds. They were to keep vigil over heavy cash withdrawals by
account holders that may be disproportionate to their normal trade/
business requirements. They were also asked to question unusual
trends.

On account of fraudulent encashment of interest/ dividend warrants

banks were asked to not open accounts without proper introduction.


In December 1993 Banks were asked to seek customer identification
while opening accounts including the obtaining of photographs of

customers.
In April 1994 the RBI clarified that photographs must be obtained for
both residents and non- residents and for those authorized to

operate accounts.
The key principle of the know your customer procedure should be
the identification of an individual/ corporate opening an account.
This should entail an introductory reference from an existing

account holder/ person known to the bank.


The board of directors must have in place adequate procedures to
verify the bona fide identification of individuals. There should also

be processes to monitor transactions of a suspicious nature.


This instruction raised the requirement of giving PAN to transactions

of Rs. 50,000 or more (earlier it was Rs. 10,000 August 1976).


There must be good control systems plus audits and checks to

ensure the bank adheres to its KYC policies.


There should be a system at branch level to ensure that lists of
terrorist entities are circulated so that accounts/ transactions are not

opened/ consummated.
Transactions of a suspicious nature must be reported to the
appropriate authorities.In May 2004, it was stated that information
collected from the customer for KYC purposes should not be used for

cross selling.
In recent years on account of the proliferation of banks and their
opening branches in locations that they had no branches before, it
has been difficult to adhere strictly to KYC guidelines. In these
instances, introductions by prominent citizens and individuals known
to the bank are considered acceptable. The concern is usually with
respect to accounts introduced by outsiders retained for this
purpose who are remunerated on the basis of the number of

accounts they introduce.


In November 2004, the RBI issued comprehensive guidelines. These
reiterated that the objective of Know Your Customer (KYC) guidelines

is to prevent banks from being used, intentionally or unintentionally,


by criminal elements for money laundering activities or for the
financing of terrorism. KYC procedures also enable banks to know /
understand their customers and their financial dealings better which
in turn help them manage their risks prudently. The guidelines are
applicable to foreign currency accounts / transactions and to all new
accounts.

KYC NORMS
Banks should frame their KYC policies incorporating the following four key
elements:

Customer Acceptance Policy.


Customer Identification Procedures.
Monitoring of Transactions.
Risk Management.

CUSTOMER ACCEPTANCE POLICY


Every bank should develop a clear Customer Acceptance Policy laying
down explicit criteria for acceptance of customers. The Customer
Acceptance Policy must ensure that explicit guidelines are in place on the
following aspects of customer relationship in the bank.

No account is opened in anonymous or fictitious name.


Parameters of risk perception are clearly defined in terms of the
nature of business activity,

location of customer and his clients

mode of payments, volume of turnover, social and financial

status

etc.
Documentation requirements and other information to be collected
in respect of different categories of customers depending on

perceived risk and keeping in mind the requirements of PML Act,


2002 and instructions/guidelines issued by Reserve Bank from time

to time
Not to open an account or close an existing account where the bank is
unable to apply appropriate customer due diligence measures i.e.
bank is unable to verify the identity and /or obtain documents required
as per the risk categorisation due to non-cooperation of the customer

Non- reliability of the data/information furnished to the bank.


Circumstances, in which a customer is permitted to act on behalf
of another person/entity, should be clearly spelt out in conformity with
the established law and practice of banking as there could be
occasions when an account is operated by a mandate holder or where
an account is opened by an intermediary in fiduciary capacity.

Banks should prepare a profile for each new customer based on


risk categorisation. The customer profile may contain information relating
to customers identity, social/ financial status, nature of business activity,
information about clients, business and their location etc.
It is important to bear in mind that the adoption of customer acceptance
policy and its implementation should not become too restrictive and must
not result in denial of banking services to general public, especially to
those, who are financially or socially disadvantaged.

CUSTOMER IDENTIFICATION PROCEDURE


Customer identification means identifying the customer and verifying
his/her identity by using reliable, independent source documents, data or
information. Sourcing Executives need to obtain sufficient information
necessary to establish, to their satisfaction, the identity of each new
customer, whether regular or occasional, and the purpose of the intended
nature of banking relationship. Being satisfied means that the dealing
official must be able to satisfy the competent authorities that due

diligence was carried out based on the risk profile of the customer in
compliance with the extant guidelines in place. Satisfying about the
identity of the customer is a process that requires combination of the
following modalities:
Face to face with the customer mandatory, at his work place or
residence, including walk-in

customers.

Perusal of various documents and verification with originals


Scrutiny of documents for any signs of forgery
In case of non-individual customers discreet enquiries with market
sources about the identity/ business should be made.
Sourcing Executives should conduct an appropriate investigation to
establish the following:
(i) The customers identity
(ii) Understand the customers profile, business and account activity
(iii) Identify relevant adverse information
While sourcing current accounts, the sourcing executive should ensure
that a specific nature of business is identified for the non-individual entity
and it should match with the firm existence proofs submitted and AOF.
Few examples of generic nature of business are Trading, Import- Exports,
Manufacturing, Production, Service provider, Consultancy, etc. The AOF
should be complete in all respects. Additional Information of applicant/s
like occupation, source of funds, monthly income, line of business, nature
of organisation, etc should be appropriately filled in AOF as per
constitution.

Accounts of Individuals with First name only


Branches often receive account opening applications from individuals only
in first name. Such applications should be handled with abundant caution
and with enhanced due diligence. These are potential areas where frauds

can happen easily and hence it is necessary to conduct enhanced due


diligence. It is not prudent to open account of an individual with a first
name without surname (not a complete name like Manoj, Radha, Anil,
Vijay, etc) as the chances of manipulation in identity in such cases
increases. Hence, as far as possible, such accounts with incomplete
names should not be opened. Preferably, the applicant should have some
supporting document which provides the full name. BM can certify process
application of individuals in first name on case to case basis. Cases where
the applicant is not able to provide any such document confirming his/her
full name, the branch should be satisfied about the true identity of the
individual intending to open account in single name. In cases of salary
accounts, applications with applicants first name only (where even
documents provided are in first name only) should be approved by RSM or
BM before further processing .Any applications (individual / Indus comfort)
where the document provided contains full name.

Close Relatives
Close relatives, e.g. wife, son, daughter and parents etc. who live with
their husband, father / mother and son, as the case may be, are finding it
difficult to open individual account in some banks as the utility bills
required for address verification are not in their name. In such cases, an
identity document and an address proof in the name of Relative with
whom the prospective customer is living along with a declaration from the
relative that the said person (prospective customer) wanting to open an
account is a relative and is staying with him / her, can be accepted.
Branches can use any supplementary evidence such as a letter received
through post for further verification of the address of the Relative.

Documentation
Sourcing Executives shall obtain satisfactory evidence of the identity of
the customer at the time of commencement of relationship/opening of
account. Such evidences shall be substantiated by reliable independent
documents, data or information or other means like physical verification

etc.

In

order

to

avoid

customer

inconvenience,

under

special

circumstances, the Bank may rely on certain data/information available


with itself or with external reliable sources for the purpose of establishing
the identity to the customer.

Opening of Accounts
Account opening has been totally centralised at Centralised Processing
Unit (CPU). Account opening process is handled as under:
Sourcing Executives who acquire the new accounts.
Verifiers (MCSOPs/Operations Executives at CAT set up/ Hub Verifiers)
who scrutinize the documents to ensure adherence to KYC Policy.
In the absence of MCSOP at a branch, Branch Manager will be the Verifier.
Once a Customer ID is created in System of a particular customer, all
accounts of the said customer should be opened in this Customer ID.
Therefore, all MCSOPs should note to check the System before allotting an
account number to a customer. For all non-individual accounts CPU will
also run a name check with the existing account in System before opening
the account. As far as possible accounts should be opened at a Branch
near to the applicants correspondence address. .For cases where the
customers

intend

opening

account

outside

the

location/city

of

residence/work/business, then a purpose letter has to be taken from the


customer along with the requisite documents which support and confirm
the reason for opening the account. The case has to be referred to the
Regional Head for approval (this is not applicable for Government
accounts, PSU accounts and Public Limited company accounts.) is this
agreed Once an account is opened under a Customer ID, opening of
additional CASA account under the existing Customer ID should be with
prior approval of the Regional Head in case of Consumer Banking
customers.

MONITORING OF TRANSACTIONS

Ongoing monitoring is an essential element of effective KYC procedures.


Banks can effectively control and reduce their risk only if they have an
understanding of the normal and reasonable activity of the customer so
that they have the means of identifying transactions that fall outside the
regular pattern of activity. However, the extent of monitoring will depend
on the risk sensitivity of the account.

Banks should pay special attention to all complex, unusually large


transactions and all unusual patterns, which have no apparent
economic or visible lawful purpose. The bank may prescribe
threshold limits for a particular category of accounts and pay

particular attention to the transactions which exceed these limits.


Transactions that involve large amounts of cash inconsistent with
the

normal

and

expected

activity

of

the

customer

should

particularly attract the attention of the bank.


Very high account turnover inconsistent with the size of the balance
maintained may indicate that funds are being washed through the
account. High-risk accounts have to be subjected

to

intensified

monitoring.
Every bank should set key indicators for such accounts, taking note
of the background of the customer, such as the country of origin,
sources of funds, the type of transactions involved and other risk
factors. Banks should put in place a system of periodical review of
risk categorization of accounts and the need for applying enhanced

due diligence measures.


Banks should ensure that a record of transactions in the accounts is
preserved and maintained as required in terms of section 12 of the
PML Act, 2002. It may also be ensured that transactions of a
suspicious nature and / or any other type of transaction notified
under section 12 of the PML Act, 2002, is reported to the

appropriate law enforcement authority.


Banks should ensure that its branchesContinue to maintain proper
record of all cash transactions (deposits and withdrawals) of Rs.10
lakh and above.

Have an internal monitoring system that has an inbuilt procedure


for reporting of large cash transactions and those of a suspicious
nature to controlling/ head office on a fortnightly basis.
computerization

of

branch

reporting

facilitate

prompt

generation of such reports.


Report transactions of a suspicious nature to the appropriate law
enforcement authorities designated

will

Early

under the relevant laws

governing such activities.


Have well laid down systems for freezing of suspicious accounts.
There must be quarterly reporting of suspicious accounts to the
audit committee of the board or the board of directors.

RISK MANAGEMENT
Internal Control Systems
Account opening is now totally centralised at CPU. A dedicated Document
Verification unit (DVU) processes each AOF and verifies the KYC
documents and ensures that the same complies with extant KYC
guidelines. We have introduced a scanning solution (I works) for scanning
documents which include Account opening forms and other documents
sent by Branches to CPU. Exemptions are tracked through this system.
Issuance of Cheques books and other deliverables are also centralised and
is issued only after completion of all account opening formalities.

Internal Audit / Inspection


High Value cash transactions and abnormal transactions in newly opened
accounts are tracked by Internal and External Concurrent Auditors and
irregularities noticed are reported. Concurrent/internal auditors will
comment on the effectiveness of the measures in adoption of KYC norms
and steps towards prevention of money laundering. Further the account
opening process at CPU is audited by Internal/ Concurrent auditors. Such
compliance reports are placed before the Audit Committee of the Board of
Directors at quarterly intervals.

Training of staff and management


It is crucial that all the operating and management staff fully understand
the need for strict adherence to KYC norms. A session on KYC and AML
is being made a part of every training program across all levels of
executives to appreciate the importance of the issue. The front desk staff
would be specially trained to handle situations while dealing with
customers wherein they are required to ask vital information without
being intrusive in nature. We have also introduced e-learning programmes
on KYC and AML. Employees are required to take on line training and
online evaluation is also conducted.

Customer education
Implementation of KYC procedures requires banks to demand certain
information from a customer which may be of personal nature or which
has hitherto never been called for. This can sometimes lead to a lot of
questioning by the customer as to the motive and purpose of collecting
such information. Therefore, we have issued specific FAQ pamphlets
regarding KYC & AML which are kept at Branches and this has also been
uploaded on our website.

Hiring of employees
Our Bank has put in place adequate screening mechanism as an integral
part of our recruitment/ hiring process of personnel. Our Bank conducts
background check of all employees and all the testimonials/ references
submitted by the employees are independently verified.

New Products

All the new products/Services and processes should be referred to Head


Banking Operations, the Principal Officer for evaluation of KYC/ AML/CFT
Compliance before they are implemented.

Review

The policy will be reviewed every year. Managing Director / Chief


Operating Officer may be severally permitted to approve modifications to
the Policy, if any, till the next review on account of changes in the
regulatory guidelines / internal requirements.

The detailed list of the documents that the Indusind


Bank can ask is given below
Features

Documents

Accounts of Individuals

- Legal name and any


other names used

(i) Passport
(ii) PAN card
(iii) Voter's Identity Card
(iv) Driving licence
(v) Identity card (subject to the bank's satisfaction)
(vi) Letter from a recognized public authority or public servant
verifying the identity and residence of the customer to the
satisfaction of bank

- Correct permanent
address

(i) Telephone bill


(ii) Bank account statement
(iii) Letter from any recognized public authority
(iv) Electricity bill
(v) Ration card
(vi) Letter from employer (subject to satisfaction of the bank)
(any one document which provides customer information to the
satisfaction of the bank will suffice)

Accounts of Companies

- Name of the company

- Principal place of
business

- Mailing address of the


company

(i) Certificate of incorporation and Memorandum & Articles of


Association
(ii) Resolution of the Board of Directors to open an account and
identification of those who have authority to operate the
account
(iii) Power of Attorney granted to its managers, officers or
employees to transact business on its behalf
(iv) Copy of PAN allotment letter
(v) Copy of the telephone bill

- Telephone / Fax Number

Accounts of Partnership Firms

- Legal name

- Address

(i) Registration certificate, if registered


(ii) Partnership deed
(iii) Power of Attorney granted to a partner or an employee of
the firm to transact business on its behalf
(iv) Any officially valid document identifying the partners and
the persons holding the Power of Attorney and their addresses
(v) Telephone bill in the name of firm / partners

- Names of all partners


and their addresses

- Telephone numbers of
the firm and partners

Accounts of Trusts & Foundations

- Names of trustees,
settlers, beneficiaries
and signatories

(i) Certificate of registration, if registered


(ii) Power of Attorney granted to transact business on its behalf
(iii) Any officially valid document to identify the trustees,
settlors, beneficiaries and those holding Power of Attorney,
founders / managers / directors and their addresses
(iv) Resolution of the managing body of the foundation /
- Names and addresses of association
the
(v) Telephone bill
founder, the managers /
directors and the
beneficiaries

- Telephone / fax numbers

Accounts of Proprietorship Concerns

- Proof of the name,


address and activity of
the concern

* Registration certificate (in the case of a registered concern)


* Certificate / licence issued by the Municipal authorities under
Shop & Establishment Act,
* Sales and income tax returns
* CST / VAT certificate
* Certificate / registration document issued by Sales Tax /
Service Tax / Professional Tax authorities
* Registration / licensing document issued in the name of the
proprietary concern by the Central Government or State
Government Authority / Department.
* IEC (Importer Exporter Code) issued to the proprietary
concern by the office of DGFT as an identity document for
opening of bank account.
* Licence issued by the Registering authority like Certificate of
Practice issued by Institute of Chartered Accountants of India,
Institute of Cost Accountants of India, Institute of Company
Secretaries of India, Indian Medical Council, Food and Drug
Control Authorities, etc.
Any two of the above documents would suffice. These
documents should be in the name of the proprietary concern.

KYC for the Existing Accounts


The branches may also ensure that term/recurring deposit accounts or
accounts of similar nature are treated as new accounts at the time of
renewal and subjected to KYC procedures. Where the branch is unable to
apply appropriate KYC measures due to non-furnishing of information
and/or non-cooperation by the customer, the branch may consider
recommending closure of the account or terminating the banking/business
relationship explaining the reasons for taking such a recommendation.
Final decisions need to be taken at Zonal Office/Group Office level.

When Does KYC Apply

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.

In every 3 years, there is the process of RE- KYC.In that the


customer have to give their ID proof and Address proof.

Account Opening Formalities


Under this section, different types of accounts are opened on the request
of clients. The
procedure of opening account is given is given below.
1. Account opening form duly filled in.
2. 2 copies of passport Size recent photograph attested by the introducer.
3. Putting specimen signatures in the specimen card
4. Nominee signature if applicable
5. Any other document required By Bank from time to time
After fulfilling the above formalities, Bank Asia provides the customer a
pay-in- slip book and acheckbook. Documentation and formalities varies
as per different entities for opening account.

EXCEPTION PROCESS IN KYC


It has been observed that at times the communication address of the firm
is not exactly the location of the business. The customers actual business

is carried out from a different address. This majorly happens in case of a


trader or a C&F agent. In such cases customer will sign an additional
attached document (Letter from Prop.doc). Customer shall provide the
details of both the addresses in this letter. The communication address
will be captured in the Communication Address column on the AOF, while
the alternate address will be captured in the Registered address column in
the AOF. For such cases proof of address will be provided only for the
communication address and not for the alternate address mentioned in
the registered address column. CPU/DVU/HUB to check this along with the
customer declaration provided for the same. HUB will trigger FV for both
the addresses as mentioned/declared by the customer.

Introduction to
INDUSIND BANK LIMITED
IndusInd Bank Limited is a Mumbai based Indian new generation bank,
established in 1994. The bank offers commercial, transactional and
electronic banking products and services. Indusind Bank was inaugurated
in April 1994 by then Union Finance Minister Manmohan SinghIndusind

Bank is the first among the new-generation private banks in India. It is a


multinational Bank.
The bank started its operations with a capital amount of Rs. 1 billion
among which Rs. 600 million was donated by the Indian Residents and Rs.
400 million was raised by the Non-Resident Indians. The bank has
specialized in retail banking services and continuously upgrades its
support systems by introducing newer technologies. It is also working on
expanding its network of branches all across the country along with
meeting the global benchmark. According to the bank, its name is derived
from the rich and vivid Indus Valley Civilisation.
IndusIndBank has 573 branches, and 1055 ATMs spread across 392
geographic locations of the country as on 30 September 2012 with 2
representative offices, one each in London and Dubai. Mumbai has the
maximum number of bank branches followed by New Delhi and Chennai.
It is one of the new generation private sector banks in India. The Bank's
business lines include corporate banking, retail banking, treasury and
foreign exchange, investment banking, capital markets, non-resident
Indian/high-net-worth individual banking, and information technology. The
Bank business divisions include Retail/ Consumer Banking, Consumer
Finance, Global Markets Group, Corporate & Commercial Banking,
Transaction Banking Group and Investment Banking. The Bank provides
multi-channel facilities, which includes automated teller machines (ATMs),
net banking, mobile banking, phone banking.
The banking and international debit cards. The Bank has multi-lateral tieups with other banks providing access to more than 18000 ATMs for their
customers. They enjoy clearing bank status for both major stock
exchanges - BSE and NSE - and three major commodity exchanges in the
country - MCX, NCDEX, and NMCE.IndusInd Bank Ltd was incorporated in
the year 1994 and was promoted by Mr Srichand P Hinduja, a leading NonResident Indian businessman and head of the Hinduja Group. The

company is a pioneer in launching internet Banking. They are rated as one


of the Top Performing Banks in various survey reports.
During the year 2003-04, the Bank opened their representative office in
Dubai. They launched their debit card with the name International Power
Card.
During the year 2008-09, the Bank launched various new products and
services which were targeted at building wealth management capabilities
as well as enhancing the existing banking channels. The Bank launched
the Gold and Investment verticals, which contributed in excess of Rs5
crore of revenue in the first year of operations. They also launched two
new channels - Wealth Relationship Managers and the Central Acquisition
During the year, the Corporate Office in Mumbai moved into new spacious
premises at One Indiabulls Centre, Elphinstone Road (W), Mumbai. The
Bank continued the process of opening :new-look branches' / off-site ATMs
at various locations, viz., branches in Chennai, Secunderabad, Phagwara,
Coimbatore, Pune, Hapur and off-site ATMs in 114 locations enhancing the
customer experiences at primary touchpoints.
During the year 2010-11, the Bank opened 90 new branches and set up
97 ATMs. As at the year ended March 31, 2011,. These new services are
aimed at making banking easy and convenient for the customers. The
Bank has purchased the Credit Cards business of Deutsche Bank during
the year. The launch of IndusInd Bank's Credit Cards business through this
acquisition has fast tracked the cards business growth plans.

Vision
IndusInd Bank (we) will be:

A relevant business and banking partner to our clients

Customer Responsive, striving at all times to collaborate with clients


in providing solutions for their banking needs

forerunner

in the market place in

terms

of profitability,

productivity and efficiency

Engaged with all our stakeholders and will deliver sustainable and
compliant returns

Mission
We will consistently add value to all our stakeholders and emerge as the
best-in-class in the chosen parameters amongst the comity of banks, by
doubling our profits, clients and branches within the next three years.

Parent Company

Hinduja Group

Category

Banking, Financial Services

Sector

Banking

Tagline/ Slogan

We Care Dil Se

USP

Giving a good value proposition to the customers

STP

Segment

People who are wish to put their money in the banking

sector

Target Group

Earning individuals, Corporates, HNIs

Positioning

Delivering what the customer needs

Board of directors
Mr.RomeshSobtihas joined the bank as Managing Director & CEO, taking
charge from Mr.BhaskarGhose. Mr. R. Seshasayee, a Chartered Accountant
by profession is the current Chairman. The other members on the board
are Dr. T. T. Ram Mohan, Mr. Ajay Hinduja.

Slogan
IndusInd bank has used many slogans to promote their cause. Some of
the slogans used by the bank areWe Care... Dil Se and We Make You Feel
Richer.

Products And Services

Personal Banking
Wealth management services
Corporate Banking
International Banking

Competitors

Sales
(Rs.Million
)

Current
Price

Change
(%)

P/E Ratio

Market
Cap.
(Rs.Million)

52-Week
High/Low

411355.34

812.15

-1.55

23.07

1956375.02

861/528

NA

1355.60

-2.53

15.97

1567022.53

1590/759

306411.55

1816.10

-2.35

13.77

856153.44

1990/764

87671.15

858.75

-0.97

44.04

661774.79

972/588

Indusind Bank

82535.34

536.25

-0.18

18.88

282186.26

587/318

Yes Bank

99813.52

509.95

-3.68

13.07

211481.55

588/216

ING Vysya Bank

52052.19

626.15

-1.88

18.06

118791.90

723/406

Federal Bank

69460.81

113.90

-4.29

11.61

97429.99

136/44

Centurion Bk of Punj

12685.30

41.40

0.00

52.93

78932.68

43/41

KarurVysya Bank

42424.29

471.25

-3.40

11.77

50559.01

510/298

NA

32.10

-3.89

8.51

43208.33

35/19

City Union Bank

21887.50

74.25

0.34

11.61

40298.46

79/38

Bank of Raj

13594.89

212.10

0.00

0.00

34222.35

214/207

Standard Chartered

90834.94

113.60

-1.26

0.92

27264.00

133/108

Karnataka Bank

41888.28

124.80

-4.51

7.56

23514.40

151/69

Company

HDFC Bank
ICICI Bank
Axis Bank
Kotak Mahindra
Bank

South Indian Bank

Future Outlook
The Bank is witnessing a high growth phase as it is continuously expanding
its geographical footprint across India. A large number of branches has also
boosted its client acquisition and mobilized low cost CASA deposits. It will
also help in creating a large customer base for cross selling other products.

The Bank maintains its focus on loan books quality which is reflected in
its declining Net NPA ratio. It has a decent share of revenue coming from
its non-core fee based activities. This non-core revenue is mainly
contributed by Corporate and Consumer Segments and helps boosts its
return on assets.

Milestones to success
2013-2014
Banking Frontier- Finnoviti Awards 2013 for my account my number.
Best Initiative of the year- TACK India fat the global world congress
held at Athens for Indus pro.
Fastest Growing Mid-size Bank by Business world PwC Best Banks
Survey 2013
Roll of Honour- Indias Best CEOs by Business Today KMPG India
Listing of Indias top 100 CEOs.
Best Bank Award customer Management and Business Intelligence
Initiatives among small Banks 2012-2013 by IDRBT.
Financial Inclusion Payment Systems Award 2013 organised by
EletsTechnomedia.
Best Bankers Awards 2013-Best Banker- Growth , Mid-sized by the
Sunday standard.
Best Private Sector Bank- Priority Sector Lending for Environmental
Sustainability.

Comparison of kyc with different banks under Sole


proprietorship, Partnership, Individual and Private Limited

Swot Analysis

STRENGTH:

Backing of the Hinduja group


Gives importance to customer experience

Offers a large variety of products and service pan India

WEAKNESS:

Lags behind many banks in capital structure


Few no. of branches across the country in comparison with leading
banks

OPPORTUINITIES:

Mobile Banking, Internet banking


Expansion into rural areas to bank the unbanked and underbanked
Doing aggressive marketing in order to improve brand value

THREATS:

New bank licenses to be issued by RBI


Competitors
Foriegn banks that mainly cater to their target group