Reserve Bank of India has advised banks to make the Know Your Customer (KYC) procedures mandatory while opening and operating the accounts. This is in the interest of customers to keep safe their hard earned money and their reputation.
At the time of opening an account Bank has to ensure that the prospective customer is the person who he/she claims to be. This is to prevent fraudsters using the name address and forged signature of others for doing fraudulent transactions; benami transactions; en-cashment of stolen cheques, drafts dividend warrants etc. For this purpose, the customer has to submit the following documents / details:
- Identity Proof
- Address proof
- Recent photograph
- Customer profile
For identity proof - Passport, PAN Card, Voter's Identity Card, Driving Licence, the letter issued by the Unique Identification Authority of India (UIDAI) containing details of name, address and Aadhar number, NREGA Job Card duly signed by an officer of the State Government, Identity Card / Confirmation from employer (to the satisfaction of the Bank), Letter from a public authority or public servant verifying the identity and residence of the customer to the satisfaction of the bank.
For address proof - Passport, Voter's Identity Card, Driving Licence, Aadhar Card, NREGA Job Card, Telephone Bill, Electricity Bill, Bank account statement (opened subject to KYC compliance), Rent agreement indicating the address duly registered with State Government or similar Registration Authority
- Customer profile – Bank requires more details about the customer like social/financial status, nature of business activity, information about his clients' business and their location, the purpose and reason for opening the account, the expected origin of the funds to be used within the relationship and details of occupation/employment, sources of wealth or income, expected monthly remittance, expected monthly withdrawals etc. When the transactions in the account are observed not consistent with the profile, bank may ask for any additional details / documents as required. This is just to confirm that the account is not being used for any Ant-Money Laundering activities
Periodical updating: To ensure that the latest details about the customer are available with the Bank, we have introduced a system for periodical updating of Identity proof, Address proof, Photograph and Profile. Customers may be required to submit the documents/details as and when called for at frequent intervals. This is in the interest of customers to weed out the chances of frauds happening in the accounts.