KYC Policy

1. Applicability

The provisions of these Directions shall apply to Each Branch and Head Office of the Bank .

2. Definitions

In this policy, unless the context otherwise requires, the terms herein shall bear the meanings assigned to them below:

i. Terms bearing meaning assigned in terms of Prevention of Money-Laundering Act, 2002 and the Prevention of Money-Laundering (Maintenance of Records) Rules, 2005:

i. “Aadhaar number” shall have the meaning assigned to it in clause (a) of section 2 of the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016 (18 of 2016);

ii. “Act” and “Rules” means the Prevention of Money-Laundering Act, 2002 and the Prevention of Money-Laundering (Maintenance of Records) Rules, 2005, respectively and amendments thereto.

iii. “Authentication”, in the context of Aadhaar authentication, means the process as defined under sub-section (c) of section 2 of the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act,2016.

iv. Beneficial Owner(BO)

a. Where thecustomer is a company, the beneficial owner is the natural person(s), who, whether acting alone or together, or through one or more juridical persons, has/have a controlling ownership interest or who exercise control through other means.

Explanation- For the purpose of this sub-clause-

1. “Controlling ownership interest” means ownership of/entitlement to more than 25 per cent of the shares or capital or profits of thecompany.

2. “Control” shall include the right to appoint majority of the directors or to control the management or policy decisions including by virtue of their shareholding or management rights or shareholders agreements or voting agreements.

b. Where thecustomer is a partnership firm, the beneficial owner is the natural person(s), who, whether acting alone or together, or through one or more juridical person, has/have ownership of/entitlement to more than 15 per cent of capital or profits of the partnership.

c. Where the customer is an unincorporated association or body of individuals, the beneficial owner is the natural person(s), who, whether acting alone or together, or through one or more juridical person, has/have ownership of/entitlement to more than 15 per cent of the property or capital or profits of the unincorporated association or body of individuals. Explanation: Term ‘body of individuals’ includes societies. Where no natural person is identified under (a), (b) or (c) above, the beneficial owner is the relevant natural person who holds the position of senior managingofficial.

d. Where the customer is a trust, the identification of beneficial owner(s) shall include identification of the author of the trust, the trustee, the beneficiaries with 15% or more interest in the trust and any other natural person exercising ultimate effective control over the trust through a chain of control or ownership.

v. “CertifiedCopy”-Obtaininga certified copyshallmeancomparing the copy of the proof of possession of Aadhaar number where offline verification cannot be carried out or officially valid document soproduced bythe customer with the original and recording the same on the copy bythe authorisedofficeras pertheprovisionscontainedintheAct.

vi. “Central KYC Records Registry” (CKYCR) means an entity defined under Rule 2(1) of the Rules, toreceive, store, safeguard and retrieve the KYC records indigital form of acustomer.

vii. “Digital KYC” means the capturing live photo of the customer and officially valid document orthe proof of possession of Aadhaar, where offline verification cannotbe carried out, along with the latitude and longitude of thelocation where such live photo isbeing taken byan authorised officer of the Bank asper the provisions contained inthe Act.

viii. “DigitalSignature”shallhavethesamemeaningasassignedto itinclause

(p) of subsection (1) of section (2) of the Information Technology Act, 2000 (21 of 2000).

ix. “Equivalent e-document” means an electronic equivalent of adocument, issued bythe issuing authority of such document with its valid digital signature including documents issued to the digital locker account of the customer asper rule 9 ofthe Information Technology (Preservation and Retention of Information by Intermediaries Providing Digital Locker Facilities) Rules, 2016.

x. “Know Your Client (KYC) Identifier” means the unique number orcode assigned toa customerby the CentralKYCRecordsRegistry.

xi. “Non-profit organisations” (NPO) means any entity ororganisation that isregistered as atrust or a society under the Societies Registration Act,1860 or any similar State legislation or acompany registered under Section 8of the Companies Act,2013.

xii. “Officially Valid Document” (OVD) means the passport, the driving licence, proof of possession of Aadhaar number, the Voter's Identity Card issued by the Election Commission of India, job card issued by NREGA duly signed by an officer of the State Government and letter issued by the National Population Register containing details of name and address. Provided that,

a. where the customer submits his proof of possession ofAadhaar number as anOVD, he may submit it insuch form asare issued bythe Unique Identification Authority ofIndia.

b. where the OVD furnished by the customer does not have updated address, the following documents orthe equivalent e-documents thereof shallbedeemedto beOVDsforthelimitedpurposeofproofofaddress:-

i. utility bill which is not more than two months old of any service provider (electricity, telephone, post-paid mobile phone, piped gas, waterbill);

ii. property or Municipal tax receipt;

iii. pension or family pension payment orders (PPOs) issued to retired employees by Government Departments or Public Sector Undertakings, if they contain theaddress;

iv. letter of allotment of accommodation from employer issued by State Government or Central Government Departments, statutory or regulatory bodies, public sector undertakings, scheduled commercial banks, financial institutions and listed companies and leave and licence agreements with such employers allotting official accommodation;

c. the customer shall submit OVD with current address within a period of three months of submitting the documents specified at ‘b’above

Explanation: For the purpose of this clause, a document shall be deemed to be an OVD even if there is a change in the name subsequent to its issuance provided it is supported by a marriage certificate issued by the State Government or Gazette notification, indicating such a change of name.

xiii. “Offline verification” shall have the same meaning as assigned to it in clause (pa) of section 2 of the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016 (18 of2016).

xiv. “Person”hasthesamemeaningassignedintheActandincludes:

a. anindividual,

b. a Hindu undivided family,

c. acompany,

d. a firm,

e. an association of persons or a body of individuals, whether incorporated ornot,

f. every artificial juridical person, not falling within any one of the above persons (a to e), and

g. any agency, office or branch owned or controlled by any of the above persons (a tof).

xv. “Principal Officer” means an officer nominated by the Board, responsible for furnishing information as per rule 8 of the Rules.

xvi. “Suspicious transaction” means a“transaction” as defined below, including anattempted transaction, whether or not made incash, which, to aperson acting in good faith:

a. gives rise to a reasonable ground of suspicion that it may involve proceeds of an offence specified in the Schedule to the Act, regardless of the value involved;or

b. appears to be made in circumstances of unusual or unjustified complexity; or

c. appears to not have economic rationale or bona-fide purpose;or

d. gives rise to a reasonable ground of suspicion that it may involve financing of the activities relating to terrorism.

Explanation: Transaction involving financing of the activities relating to terrorism includes transaction involving funds suspected to be linked or related to, or to be used for terrorism, terrorist acts or by a terrorist, terrorist organization or those who finance or are attempting to finance terrorism.

xvii. A ‘Small Account' means asavings account which is opened in terms of sub- rule (5) of the PML Rules, 2005. Details of theoperation of asmall account andcontrolsto beexercisedforsuchaccountarespecifiedinSection23.

xviii. “Transaction” means apurchase, sale, loan, pledge, gift, transfer, delivery or the arrangement thereof and includes:

a. opening of an account;

b. deposit, withdrawal, exchange or transfer of funds in whatever currency, whether in cash or by cheque, payment order or other instruments or by electronic or other non-physical means;

c. the use of a safety deposit box or any other form of safe deposit;

d. entering into any fiduciary relationship;

e. any payment made or received, in whole or in part, for any contractual or other legal obligation; or

f. establishing or creating a legal person or legalarrangement.

xix. “Video based Customer Identification Process (V-CIP)”: a method of customer identification by an official of the RE by undertaking seamless, secure,real-time, consentbased audio-visual interaction withthe customerto

obtain identification information including the documents required for CDD purpose, and to ascertain the veracity of the information furnished by the customer. Such process shall be treated as face-to-face process for the purpose of this Master Direction.

(b) Terms bearing meaning assigned in this Directions, unless the context otherwise requires, shall bear the meanings assigned to them below:

i. “Common Reporting Standards” (CRS) means reporting standards set for implementation of multilateral agreement signed to automatically exchange information based on Article 6 of the Convention on Mutual Administrative Assistance in TaxMatters.

ii. “Customer” means a person who is engaged in a financial transaction or activity with a Regulated Entity (RE) and includes a person on whose behalf the person who is engaged in the transaction or activity, is acting.

iii. “Walk-in Customer” means aperson who does not have an account-based relationship with the RE, but undertakes transactions with theRE.

iv. “Customer Due Diligence (CDD)” means identifying and verifying thecustomer and the beneficialowner.

v. “Customer identification” means undertaking the process ofCDD.

vi. “FATCA” means Foreign Account Tax Compliance Act of the United States of America (USA) which, inter alia, requires foreign financial institutions toreport about financial accounts held byU.S. taxpayers or foreign entities inwhich U.S. taxpayers hold asubstantial ownershipinterest.

vii. “IGA” means Inter Governmental Agreement between the Governments ofIndia and the USA toimprove international taxcompliance and to implement FATCA of theUSA.

viii. “KYC Templates” means templates prepared tofacilitate collating and reporting theKYCdatato theCKYCR,forindividualsandlegalentities.

ix. “Non-face-to-face customers” means customers who open accounts without visiting the branch/offices of the REs or meeting the officials ofREs.

x. “On-going Due Diligence” means regular monitoring of transactions inaccounts toensure that they are consistent with the customers’ profileand source of funds.

xi. “Periodic Updation” means steps taken toensure that documents, data or information collected under the CDD process is kept up-to-date andrelevant

by undertaking reviews of existing records at periodicity prescribed by theReserve Bank.

xii. “Politically Exposed Persons” (PEPs) are individuals who are or have been entrusted with prominent public functions in aforeign country, e.g., Heads of States/Governments, senior politicians, senior government/judicial/military officers, senior executives of state-owned corporations, important political party officials, etc.

(c) All other expressions unless defined herein shall have the same meaning as have been assigned to them under the Banking Regulation Act, 1949, the Reserve Bankof IndiaAct, 1935,the Preventionof MoneyLaundering Act, 2002,the

Prevention of Money Laundering (Maintenance of Records) Rules, 2005, the ¹⁴Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016 and regulations made thereunder, any statutory modification or re-enactment thereto or as used in commercial parlance, as the case may be.

3. The KYC policy shall include following four keyelements:

(a) Customer AcceptancePolicy;

(b) RiskManagement;

(d) Monitoring ofTransactions

4. Principal Officer:

(a) The Principal Officer shall be responsible for ensuring compliance, monitoring transactions, and sharing and reporting information as required under the law/regulations.

(b) The name, designation and address of the Principal Officer shall be communicated to theFIU-IND.

5. Without prejudice to the generality of the aspect that Customer Acceptance Policy may contain, Bank Branches shall ensurethat:

(a) No account is opened in anonymous or fictitious/benami name.

(b) No account is opened where the Branch is unable to apply appropriate CDD measures, either due to non-cooperation of the customer or non-reliability of the documents/information furnished by thecustomer.

(d) The mandatory information to be sought for KYC purpose while opening an account and during the periodic updation, is specified.

(e) ‘Optional’/additional information, is obtained with the explicit consent of the customer after the account is opened.

(f) Branches shall apply the CDD procedure at the UCIC level. Thus, if an existing KYC compliant customer of one Branch desires to open another account with the same Branch or any other branch, there shall be no need for a fresh CDDexercise and Previous CIF will be used for the purpose.

(g) CDD Procedure is followed for all the joint account holders, while opening a jointaccount.

(h) Circumstances in which, a customer is permitted to act on behalf of another person/entity, should be clearly spelt out.

(i) Permanent Account Number (PAN) shall be obtained compulsorily for all accounts in the bank and the same shall be verified from the verification facility of the issuing authority.

(j) 16Where an equivalent e-document is obtained from the customer, Branch shall verify the digital signature as per the provisions of the Information Technology Act, 2000 (21 of 2000).

6. Customer Acceptance Policy shall not result in denial of banking/financial facility to members of the general public, especially those, who are financially or socially disadvantaged.

7. For Risk Management, Branches shall have a risk based approach whichincludes the following.

(a) Customers shall be categorised as low, medium and high risk category, based on theassessment and riskperception of theBranch.

(b) Risk categorisation shall be undertaken based on parameters such ascustomer’s identity, social/financial status, nature of business activity, and information about the clients’ business and their location etc. While considering customer’s identity, the ability to confirm identity documents through online or other services offered by issuing authorities may also be factoredin.

Provided that various other information collected from different categories of customers relating to the perceived risk, is non-intrusive and the same is specified in the KYC policy.

Explanation:FATF Public Statement, the reports and guidance notes onKYC/AML issued bythe Indian Banks Association (IBA), guidance note circulated to all cooperative banks by the RBIetc., may also beused inrisk assessment.

8. For the purpose of verifying the identity of customers at the time of commencement of an account-based relationship, Branches, shall at their option, rely on customer due diligence done by a third party, subject to the following conditions:

(a) Records or the information of the customer due diligence carried out by the third party is obtained within two days from the third party or from the Central KYC RecordsRegistry.

(b) Adequate steps are taken by Branches to satisfy themselves that copies of identification data and other relevant documentation relating to the customer due diligence requirements shall be made available from the third party upon request without delay.

(c) The third party is regulated, supervised or monitored for, and has measures in place for, compliance with customer due diligence and record-keeping requirements in line with the requirements and obligations under the PML Act.

(d) The third party shall not be based in a country or jurisdiction assessed as highrisk.

(e) The ultimate responsibility for customer due diligence and undertaking enhanced due diligence measures, as applicable, will be with the Branch.

9. For undertaking Customer Due Diligence, Branch shall obtain the following from an individual while establishing an account-based relationship or while dealing with the individual who is a beneficial owner, authorised signatory or the power of attorney holder related to any legalentity:

(a) the Aadhaar number where,

(b) the Permanent Account Number or the equivalent e-document thereof or Form No. 60 as defined in Income-tax Rules, 1962; and

(c) such other documents including in respect of the nature of business and financial status of the customer, or the equivalent e-documents thereof as may be required by theBranch:

In case, if customer wants to provide a current address, different from the address as per the identity information available in the Central Identities Data Repository, he may give a self-declaration to that effect to the Branch.

10. KYC verification once done by one branch/office of the Branch shall be valid for transfer of the account to any other branch, provided full KYC verification has already been done for the concerned account and the same is not due for periodicupdation.

11. For opening an account in the name of a sole proprietary firm, CDD of the individual (proprietor) shall be carried out.

12. In addition to the above, any two of the following documents or the equivalente- documents there of as a proof of business/ activity in the name of the proprietary firm shall also be obtained:

(a) Registration certificate

(b) Certificate/licence issued by the municipal authorities under Shop and Establishment Act.

(d) CST/VAT/ GST certificate (provisional/final).

(e) Certificate/registration document issued by Sales Tax/Service Tax/Professional Tax authorities.

(f) IEC (Importer Exporter Code) issued to the proprietary concern by the office of DGFT or Licence/certificate of practice issued in the name of the proprietary concern by any professional body incorporated under a statute.

(g) Complete Income Tax Return (not just the acknowledgement) in the name of the sole proprietor where the firm's income is reflected, duly authenticated/acknowledged by the Income Tax authorities.

(h) Utility bills such as electricity, water, landline telephone bills,etc.

13. For opening an account of a company, certified copies of each of the following documents or the equivalent e-documents thereof shall beobtained:

(a) Certificate of incorporation

(b) Memorandum and Articles of Association

(d) A resolution from the Board of Directors and power of attorney granted to its managers, officers or employees to transact on its behalf

(e) Documents, as specified in Section 16, relating to beneficial owner, the managers, officers or employees, as the case may be, holding an attorney to transact on the company’s behalf

14. For opening an account of a partnership firm, the certified copies of each of the following documents or the equivalent e-documents thereof shall beobtained:

(a) Registration certificate

(b) Partnership deed

(d) Documents, as specified in Section 16, relating to beneficial owner, managers, officers or employees, as the case may be, holding an attorney to transact on itsbehalf

15. For opening an account of a trust, certified copies of each of the following documents or the equivalent e-documents thereof shall beobtained:

(a) Registration certificate

(b) Trustdeed

(d) Documents, as specified in Section 16, relating to beneficial owner, managers, officers or employees, as the case may be, holding an attorney to transact on itsbehalf

33A. For opening an account of an unincorporated association or a body of individuals,certified copies of each of the following documents or the equivalent e- documents thereof shall be obtained:

(a) Resolution of the managing body of such association or body of individuals

(b) Permanent Account Number or Form No. 60 of the unincorporated association or a body ofindividuals

(d) Documents, as specified in Section 16, relating to beneficial owner, managers, officers or employees, as the case may be, holding an attorney to transact on its behalfand

(e) Such information as may be required by the Branch to collectively establish the legal existence of such an association or body ofindividuals.

Explanation: Unregistered trusts/partnership firms shall be included under the term ‘unincorporated association’.

Explanation: Term ‘body of individuals’ includes societies.

33B. For opening accounts of juridical persons not specifically covered in the earlier part, such as societies, universities and local bodies like village panchayats, certified copies of the following documents or the equivalent e-documents thereof shall be obtained:

(a) Document showing name of the person authorised to act on behalf of the entity;

(b) Documents, as specified in Section 16, of the person holding an attorney to transact on its behalf and

34. For opening an account of a Legal Person who is not a natural person, the beneficial owner(s) shall be identified and all reasonable steps in terms of sub- rule (3) of Rule 9 of the Rules to verify his/her identity shall be undertaken keeping in view the following:

(a) Where the customer or the owner of the controlling interest is a company listed on a stock exchange, or is a subsidiary of such a company, it is not necessary to identify and verify the identity of any shareholder or beneficial owner of suchcompanies.

(b) In cases of trust/nominee or fiduciary accounts whether the customer is acting on behalf of another person as trustee/nominee or any other intermediary is determined. In such cases, satisfactory evidence ofthe identity ofthe intermediaries and of the persons on whose behalf they are acting, as also details of the nature of the trust orother arrangements inplace shall be obtained.

35. Branches shall undertake on-going due diligence of customers to ensure that their transactions are consistent with their knowledge about the customers, customers’ business and risk profile; and the source offunds.

36. Without prejudice to the generality of factors that call for close monitoring following types of transactions shall necessarily bemonitored:

(a) Large andcomplex transactions including RTGS transactions, and those with unusual patterns, inconsistent with thenormal andexpected activity of the customer, which have no apparent economic rationale or legitimatepurpose.

(b) Transactions which exceed thethresholds prescribed forspecific categories ofaccounts.

(d) Deposit of third party cheques, drafts, etc. in the existing and newly opened accounts followed by cash withdrawals for large amounts.

37. The extent of monitoring shall be aligned with the risk category ofthe customer.

Explanation: High risk accounts have to be subjected to more intensified monitoring.

(a) Asystem ofperiodic reviewof riskcategorisation ofaccounts, withsuch periodicity being at least once in six months, and the need for applying enhanced due diligence measures shall be put in place.

(b) The transactions in accounts of marketing firms, especially accountsof Multi-level Marketing (MLM) Companiesshall beclosely monitored.

Explanation:Cases wherea large numberof chequebooks aresought bythe company and/ormultiple smalldeposits (generallyin cash)across thecountry in one bank account and/or where a large number of cheques are issued bearing similaramounts/dates, shallbe immediatelyreported toReserve Bank ofIndia andother appropriateauthorities such asFIU-IND.

38. Periodic Updation

Periodic updation shall be carried out at least once in every two years for high risk customers, once in every eight years for medium risk customers and once in every ten years for low risk customers as per the followingprocedure:

39. In case of existing customers, Branch shall obtain the Permanent Account Number or equivalent e-document thereof or Form No.60, by such date as may be notified by the Central Government, failing which Branch shall temporarily cease operations in the account till the time the Permanent Account Number or equivalent e- documents thereof or Form No. 60 is submitted by thecustomer.

Provided that before temporarily ceasing operations for an account, the Branch shall give the customer an accessible notice and a reasonable opportunity to be heard. Further, Branch shall include, in its internal policy, appropriate relaxation(s) for continued operation of accounts for customers who are unable to provide Permanent Account Number or equivalent e-document thereof or Form No. 60 owing to injury, illness or infirmity on account of old age or otherwise, and such like causes. Such accounts shall, however, be subject to enhancedmonitoring.

Provided further that if a customer having an existing account-based relationship with the branch gives in writing to the branch that he does not want to submithis

Permanent Account Number or equivalent e-document thereof or Form No.60, RE shall close the account and all obligations due in relation to the account shall be appropriately settled after establishing the identity of the customer by obtaining the identification documents as applicable to thecustomer.

41. Simplified norms for Self Help Groups(SHGs)

(a) CDD of all the members of SHG shall not be required while opening the savings bank account of the SHG.

(b) CDD of all the office bearers shall suffice.

(c) No separate CDD as per the CDD procedure mentioned in Section 16 of the MD of the members or office bearers shall be necessary at the time of credit linking of SHGs.

42. The following steps shall be taken regarding maintenance, preservationand reportingof customeraccount information,with referenceto provisionsof PML Act and Rules.Branchesshall,

(a) maintain all necessary records of transactions between the Branches and the customer, both domestic and international, for atleast five years from thedate oftransaction;

(b) preserve the records pertaining to the identification of the customersand their addresses obtained while opening the account and during the course of business relationship, for at least five years after the business relationship is ended;

(d) introduce a system of maintaining proper record of transactions prescribedunder Rule 3 ofPrevention ofMoney Laundering (Maintenance ofRecords) Rules, 2005(PML Rules, 2005);

(e) maintain all necessary information inrespect oftransactions prescribed under PML Rule 3so as to permit reconstruction of individual transaction, including thefollowing:

(i) the nature of thetransactions;

(ii) the amount of the transaction and the currency in which it was denominated;

(iii) the date on which the transaction was conducted;and

(iv) the parties tothetransaction.

(f) evolve a system for proper maintenance and preservation of account information in a manner that allows data to be retrieved easily and quickly whenever required or when requested by the competent authorities;

(g) maintainrecords ofthe identityand addressof theircustomer, and records in respect of transactions referred to in Rule 3 in hard or softformat.

43. Branches shall furnish to the Director, Financial Intelligence Unit-India (FIU-IND), information referred to in Rule 3 of the PML (Maintenance of Records) Rules, 2005 in terms of Rule 7 thereof via Head Office.

Explanation: In terms of Third Amendment Rules notified September 22, 2015 regarding amendment to sub rule 3 and 4 of rule 7, Director, FIU-IND shall have powers to issue guidelines to the REs for detecting transactions referred to in various clauses of sub-rule (1) of rule 3, to direct them about the form of furnishing information and to specify the procedure and the manner of furnishing information.

44. While furnishing information to the Director, FIU-IND, delay of each day in not reporting a transaction or delay of each day in rectifying a mis-represented transaction beyond the time limit as specified in the Rule shall be constituted as a separate violation. Branch shall not put any restriction on operations in the accounts where an STR has been filed. Branch shall keep the fact of furnishing of STR strictlyconfidential. It shallbe ensuredthat thereis notipping offto the customer at any level.

45. Robust software, throwing alerts when the transactions are inconsistent with risk categorization and updated profile of the customers shall be put in to use as a partof effectiveidentification and reportingof suspicioustransactions.

46. Freezing of Assets under Section 51A of Unlawful Activities (Prevention) Act, 1967

The procedure laid down in the UAPA Order dated ⁵¹March 14, 2019 (Annex IIof this Master Direction) shall be strictly followed and meticulous compliance with the Order issued by the Government shall beensured.

47. Secrecy Obligations and Sharing of Information:

(a) Banks shall maintain secrecy regarding the customer information which arises out of the contractual relationship between the banker and customer.

(b) Information collected from customers for the purpose of opening of account shall be treated as confidential and details thereof shall not be divulged forthe purpose of cross selling, or for any other purpose without the express permission of the customer.

(c) While considering the requests for data/information from Government and other agencies, banks shall satisfy themselves that the information being sought is not of such a nature as will violate the provisions of the laws relating to secrecy in the banking transactions.

(d) The exceptions to the said rule shall be asunder:

i. Where disclosure is under compulsion of law

ii. Where there is a duty to the public to disclose,

iii. the interest of bank requires disclosure and

iv. Where the disclosure is made with the express or implied consent of thecustomer.

48. Period for presenting payment instruments

Payment of cheques/drafts/pay orders/banker’s cheques, if they are presented beyond the period of three months from the date of such instruments, shall not be made. Non CTS cheques/drafts/pay orders/banker’s cheques will not be paid in any case.

49. Operation of Bank Accounts & Money Mules

The instructions on opening of accounts and monitoring of transactions shall be strictly adhered to, in order to minimise the operations of “Money Mules” which are used to launder the proceeds of fraud schemes (e.g., phishing and identity theft) by criminals who gain illegal access to deposit accounts by recruiting third parties which act as “money mules.” If it is established that an account opened and operated is that of a Money Mule, it shall be deemed that the bank has not complied with these directions.

50. Collection of Account Payee Cheques

Account payee cheques for any person other than the payee constituent shall not be collected. Banks shall, at their option, collect account payee cheques drawn for an amount not exceeding rupees fifty thousand to the account of their customers who are co-operative credit societies, provided the payees of such cheques are the constituents of such co-operative credit societies.

62. A Unique CIF shall be allotted while entering into new relationships with individual customers as also the existing customers.

63. Introduction of New Technologies – Credit Cards/Debit Cards/ Smart Cards/Gift Cards/Mobile Wallet/ Net Banking/ Mobile Banking/RTGS/ NEFT/ECS/IMPS etc.

Adequate attention shall be paid by Branches to any money-laundering andfinancing ofterrorism threats that may arisefrom new or developing technologiesand it shall beensured thatappropriate KYCprocedures issued from time to timeare duly applied before introducing newproducts/ services/technologies. Agents used for marketingof creditcards shallalsobe subjectedto due diligenceandKYC measures.

64. Issue and Payment of Demand Drafts, etc.,

Any remittance of funds by way of demand draft, mail/telegraphic transfer/NEFT/IMPS or any other mode and issue of travelers’ cheques for value of rupees Ten thousand and above shall be effected by debit to the customer’s account or against cheques and not against cash payment.

Further, the name of the purchaser shall be incorporated on the face of the demand draft, pay order, banker’s cheque, etc., by the issuing Branch.

65. Quoting of PAN

Permanent account number (PAN) or equivalent e-document thereof of customers shall be obtained and verified while undertaking transactions as per the provisions of Income Tax Rule114Bapplicable to banks, as amended from time to time. Form 60 shall be obtained from persons who do not have PAN or equivalent e-document thereof and accordingly be reported to the concerned departments as per prevailing rules.

66. At-par cheque facility availed by the Bank from IDBI

Branchesshall:

a. ensure that the ‘at par’ cheque facility is utilisedonly for their own use,

b. for their account-holders who are KYC complaint, provided that all transactions of rupees fifty thousand or more are strictly by debit to the customers’accounts

c. maintain records pertaining to issuance of ‘at par’ cheques covering, inter alia, applicant’s name and account number, beneficiary’s details and date of issuance of the ‘at par’ cheque

d. ensure that ‘At par’ cheques issued are crossed ‘account payee’ irrespective of the amount involved

e. ensure information to IDBI via advice regarding details of Cheques issued at par

KYC Policy

1. Applicability

2. Definitions

4. Principal Officer:

38. Periodic Updation

46. Freezing of Assets under Section 51A of Unlawful Activities (Prevention) Act, 1967

48. Period for presenting payment instruments

49. Operation of Bank Accounts & Money Mules

50. Collection of Account Payee Cheques

63. Introduction of New Technologies – Credit Cards/Debit Cards/ Smart Cards/Gift Cards/Mobile Wallet/ Net Banking/ Mobile Banking/RTGS/ NEFT/ECS/IMPS etc.

64. Issue and Payment of Demand Drafts, etc.,

65. Quoting of PAN

66. At-par cheque facility availed by the Bank from IDBI

Latest News

Other Links