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 according to his/her profile:
For identity proof - Passport / Driving Licence / PAN Card / Voter's Identity Card / AADHAAR Letter / NREGA Job Card duly signed by an officer of the State Government.
For address proof - Passport / Driving Licence / Voter's Identity Card / AADHAAR Letter / NREGA Job Card duly signed by an officer of the State Government.
For partership firms
For sole proprietorship
For trusts and foundations
For Unincorporated association or body of individuals
* Includes constitution & tax certificates
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
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.