Professional Documents
Culture Documents
JAIIB | CAIIB |IBPS | SBI | RBI | SEBI | SIDBI | NABARD | SSC CGL | SSC CHSL | OTHER EXAMS 1
ambitiousbaba.com Online Test Series
JAIIB | CAIIB |IBPS | SBI | RBI | SEBI | SIDBI | NABARD | SSC CGL | SSC CHSL | OTHER EXAMS 2
ambitiousbaba.com Online Test Series
• In case of Joint accounts, CDD procedure is carried out for all joint account
holders.
NOTE: In case of non-compliance of KYC guidelines by an existing customer,
bank may decide to close the account after giving due notice to the customer.
Customer Identification Procedures
Identifying and verifying the identity by using reliable, independent source
documents, data or information to be done in following cases:
• While opening a account or establishing account based relationship.
• Undertaking international transfer for non-account holders.
• If a doubt arises about authenticity of an existing customer.
• Selling any product of value over Rs.50,000.
• Carrying out a transaction valued over Rs. 50,000 for a walk-in customer.
• When there is a doubt that customer is intentionally structuring transactions
below threshold of Rs. 50,000
Customer Due Diligence Procedure
Customer due diligence includes customer identification, and also obtaining information
about the following:
• Customer's location
• Nature of business activity
• Purpose for which banking services will be used
• Mode of payments
• Volume of turnover
• Social and Financial status
INDIVIDUALS (CDDP)
Individuals Requiring CDD:
Documents to be obtained from an individual associated with the bank in any of the
under mentioned capacities are listed here.
• A person entering in an account based relationship.
• Beneficial owner of a legal entity customer.
• An authorised signatory of a legal entity customer
• A power of attorney holder of a legal entity customer
JAIIB | CAIIB |IBPS | SBI | RBI | SEBI | SIDBI | NABARD | SSC CGL | SSC CHSL | OTHER EXAMS 3
ambitiousbaba.com Online Test Series
NOTE: Where any of the above mentioned documents is obtained for address purpose,
within three months an OVD with current address must be submitted by the customer
Individuals Requiring CDD:
Documents to be obtained from an individual associated with the bank in any of the
under mentioned capacities are listed here.
• A person entering in an account based relationship.
• Beneficial owner of a legal entity customer.
• An authorised signatory of a legal entity customer
• A power of attorney holder of a legal entity customer
Change in name
• Where there has been change in name, an OVD with previous name along with
the marriage certificate or the Gazette Notification indicating the change in
name can be accepted.
Aadhar based KYC (norms)
• To be used only with the written consent of the customer.
JAIIB | CAIIB |IBPS | SBI | RBI | SEBI | SIDBI | NABARD | SSC CGL | SSC CHSL | OTHER EXAMS 4
ambitiousbaba.com Online Test Series
• Must be redacted on the bank's records, physical and electronic, retaining only
the last 4 digits.
• A customer wanting credit of benefit subsidy under a notified scheme: Biometric
authentication of Aadhaar is mandatory.
• For a customer voluntarily using Aadhaar number for identification purpose
banks may carry out e-KYC Authentication or offline verification
• If a customer provides a current address different from that in Aadhaar records,
a self-declaration is to be obtained.
Accounts of non-face-to-face customers- OTP based Aadhaar Verification :
Restrictions
• Aggregate balance of all the deposit accounts of the customer shall not exceed 1
lakh
• Aggregate of all credits in a financial year, in all the deposit accounts taken
together, shall not exceed 2 lakh
• For borrowal accounts, only term loans shall be sanctioned and the aggregate
amount of term loans sanctioned shall not exceed 60,000 - in a year.
• Both deposit and borrowal accounts shall not be allowed for more than one year
within which normal mode identification is to be done,
• If OVD is not submitted CDD procedure not completed within a year, a deposit
account will be closed and no disbursals will be made on the borrowal account
• A declaration to be obtained that no other account using this mode has been
opened nor will be opened at any other financial institution or a bank.
Sole Proprietary Firms (CDDP)
CDD of the individual (proprietor) shall be carried out and in addition, any two of the
following documents are to be obtained:
• Registration certificate
• Certificate licence issued by the municipal authorities under Shop and
Establishment Act
• Sales and income tax returns
• CST/VAT/ GST certificate (provisional final)
• Certificate registration document issued by Sales Tax/ Service Tax authorities
• IEC (Importer- Exporter Code) issued to the proprietary concern by the office of
DGFT
• Income Tax Return in the name of the sole proprietor
• Utility bills such as electricity, water, landline telephone bills, etc.
Companies (CDDP)
• Certificate of Incorporation
JAIIB | CAIIB |IBPS | SBI | RBI | SEBI | SIDBI | NABARD | SSC CGL | SSC CHSL | OTHER EXAMS 5
ambitiousbaba.com Online Test Series
• Control exercised over the activities of the entity through any other means.
The threshold values in respect of different types of legal persons are as follows:
JAIIB | CAIIB |IBPS | SBI | RBI | SEBI | SIDBI | NABARD | SSC CGL | SSC CHSL | OTHER EXAMS 7
ambitiousbaba.com Online Test Series
• Passport (with visa & immigration endorsement) and address in the home
country, Photograph, and Letter offering admission from the educational
institution in India.
• To obtain declaration about local address, within 30 days of opening the account
• Foreign remittances not exceeding USD 1000 or equivalent can be credited and
not to exceed Rs.50,000/-
• Prior RBI approval is required to open account of students with Pakistani
nationality
Simplified Due Diligence Requirements
(a)For Foreign Portfolio Investors:
• Accounts of FPls eligible registered as per SEBI guidelines can be opened on the
basis of specified documents for the respective category of FPI.
• Income Tax (FATCA/ CRS) Rules need to be observed
• Undertaking from FPI or its Global Custodian that as and when required, the
exempted documents as detailed in Annex III will be submitted.
(b)Small Accounts: No OVD
These accounts are opened based on the customer's declaration about identity (self-
attested photograph) and address to be signed and given in the presence of a
designated bank official at the bank branch. The designated official will certify that the
customer has signed in his presence.
The customer should provide OVD within 12 months. If a customer provides
evidence of having applied for an OVD, account can be continued for another 12
months. On expiry of 24 months these relaxations are reviewed.
Restrictions on Small Accounts
JAIIB | CAIIB |IBPS | SBI | RBI | SEBI | SIDBI | NABARD | SSC CGL | SSC CHSL | OTHER EXAMS 8
ambitiousbaba.com Online Test Series
JAIIB | CAIIB |IBPS | SBI | RBI | SEBI | SIDBI | NABARD | SSC CGL | SSC CHSL | OTHER EXAMS 9
ambitiousbaba.com Online Test Series
transfers where both the remitter and beneficiary are banks or financial
institutions
• Domestic wire transfers: All such actions of Rs. 50,000 and above shall be
accompanied by originator information such as name, address and account no.
• The originator information should be preserved for at least five years by the
ordering bank.
• A bank that is an intermediary in a chain of wire transfers should ensure that all
originator information accompanying a wire transfer is retained with the
transfer.
• Beneficiary Bank should have procedures to identify wire transfers lacking
complete originator information. Such transactions should be reported as STR to
FIU-Ind
Central KYC Records Registry
• Central KYC Records Registry (CKYCR) is an entity authorised to receive, store,
safeguard and retrieve the KYC records of a customer in digital form.
• Government of India has authorised the Central Registry of Securitisation
Asset Reconstruction and Security Interest of India (CERSAI) to act as, and to
perform the functions of the CKYCR.
• Banks are required to upload regularly on CKYCR the KYC data pertaining to all
individual accounts opened on or after January 1, 2017 and for accounts of
legal entities (LE's) opened on or after April 1, 2021.
• In case of accounts of Individuals opened prior to January 1, 2017, and those of
LEs opened prior to April 1, 2021, the KYC records are to be uploaded on to
CKYCR during periodic updation.
• The KYC information should be uploaded within 10 days of commencement of
account based relationship with the customer.
Monitoring Of Transaction
• Transactions that involve large amounts of cash, inconsistent with the normal
and expected activity of the customer, are subjected to detailed scrutiny.
• Banks are required to have adequate arrangements for monitoring of
transactions for detection of suspicious transactions and reporting these to FIU-
Ind.
• The decisions for filing STR is taken by Principal Officer.
RECORD MANAGEMENT
Banks are required to maintain records of transactions for five years from the date of
transactions and KYC documents, business correspondence, customer related
information for 5 years from the date of end of relationship.
JAIIB | CAIIB |IBPS | SBI | RBI | SEBI | SIDBI | NABARD | SSC CGL | SSC CHSL | OTHER EXAMS 10
ambitiousbaba.com Online Test Series
JAIIB | CAIIB |IBPS | SBI | RBI | SEBI | SIDBI | NABARD | SSC CGL | SSC CHSL | OTHER EXAMS 11