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Security Tips

Internet Banking frauds have been rampant after Internet has become more popular for online transactions. In the recent past, Internet Banking frauds were on the rise. Here are some tips which you can adopt to make your internet banking secure.

 

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Prevent Phishing Attacks

Phishing is a technique employed by criminals to get hold of your personal information. A phishing email will have the look and feel of an authentic email. It can take many forms. It can be a job offer or it can be about your winning a lottery or about security breaches in your bank account etc. Here are some tips which will help you to identify phishing mails.

 

Email Security Tips & Spam Mails

Email has become an inevitable part of our lives. For day to day communications, people are now resorting to email more than the traditional snail mail. This is because of the advantages and flexibility offered by Email. At the same time, many are not aware of the lack of security of an Email. Hacking attempts, Phishing attacks, Spam mails, Identity theft etc are increasing day by day. So it is high time that you are aware of these threats and know how to protect yourselves. Here are some important security tips that e-mail users should be aware of.

 

How to Reset FedNet Internet Banking Password

Forgot your Internet Banking password ? No worries. You can reset the password online in simple steps.

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Security Tips

 

Do's and Don't to Secure your Mobile Phone

  • Never connect your mobile phone through an un-secured Wi-Fi connection available in public places such as airports etc
  • Don't open every SMS / MMS as it may contain viruses, especially from unknown sources
  • Never accept offers such as caller tunes or dialer tunes from unknown sources
  • Try and avoid using Bluetooth in public places, as someone can access your confidential data / information
  • Never open / download emails or attachments from unknown sources
  • Be careful about the websites you are browsing. If they do not sound authentic, do not download anything from it
  • Change your MPIN periodically
  • Observe the padlock symbol on the bar of the browser to ensure that the site is running in secure mode
Tips on the Use of Security Measures
  • We are committed to provide secure mobile banking experience. We strive to utilize state-of-the-art technology to protect your financial information. We employ a wide range of security features for our website
  • 128-bits Secure Socket Layer
  • Encryption
  • Two levels of PIN for executing Transactions Online
  • Our systems are protected at all times by a powerful firewall
Tips on the Use of PIN
  • Always choose unique PIN numbers only
  • Avoid choosing PIN that are obvious birthdays, telephone numbers etc
  • Destroy the PIN mailer after memorizing or changing the PIN after first usage
  • Your PIN should be 4-digits number
  • Do not use a PIN that contains part of your account number
  • Do not disclose your Mobile Banking PIN to anybody, not even to a Bank employee
Tips on the use of Mobile Banking
 
Beware of Virus
  • Do not download any software or game application without verifying its security and privacy features from the website
  • To protect from the virus use anti-virus software:
  • Install anti-spyware software in your mobile phone
  • Delete junk messages and chain messages
  • Do not access any URL that you are not sure about
  • Do not download any file from sites that you are not sure about
Configure the PIN for your mobile handset
  • All the mobile handsets have the optional feature of a PIN which can be set up. Once you switch on the mobile phone, the PIN is validated to use your mobile handset
Update your mobile handset with latest software
  • The manufacturer or dealer of your mobile may provide updated software for your mobile phone regularly.
  • You must check the availability of software updates regularly from the website
Do not share your mobile handset
  • Do not forget the following if you have to share your mobile handset or send it for maintenance:
  • Clear the browsing history from time to time
  • Do not allow others access your mobile phones before logging out from sites
  • Remove the temporary files and the cache file from your handset regularly
Do not share your MPIN with anyone
  • Its highly suggested that you should not share your MPIN with anyone for security reasons
Do not leave your Mobile Banking application session unattended. Always log off from your session
  • Do not close the application in middle by exiting from browser, instead do log out and then close the browser

Do's

 

  • Insert ATM Card into the card slot of ATM Machine with Visa Logo positioned upwards to the thumb.
  • Collect cash immediately from the cash slot when cash is presented.
  • Remember to take the card from the slot when the card is ejected out.
  • Deposit cash in the ATM using envelopes received from the ATM and deposit the envelope with cash inside in the slot provided for..
  • Read instructions given on the envelope before using it.
  • It is advisable to change PIN at the first instance itself for enhanced security.
  • Sign on the Card immediately on receipt to avoid misuse of unsigned cards.
  • Contact Branch Manager or ATM support or Call Centre if any assistance is required.
  • Report immediately to Call Centre or ATM support or Branch if card is lost.

Don'ts

 

  • Do not keep PIN and Card together.
  • Do not reveal your PIN to anyone else.
  • Do not write your PIN on the backside of the card.
  • Do not reveal your PIN through SMS / Email etc.
  • Do not use ATM card for Internet transaction.
  • Do not dispose statements, charge slips and bank mails without destroying.
  • Do not put more than 40 currency notes in a single deposit envelope for cash deposits in ATM.
  • Do not insert pins, clips, coins etc in the envelope.
  • Do not allow the card to be taken out of your sight in a merchant location.
  • Do not allow yourself to be distracted in any way while using the ATM.
  • Do not litter the Cabin.
  • Do not wear Helmet when you are entering in to the ATM cabin.

Cautionary Measures

 

  • Avoid taking ‘Help' extended for carrying out ATM operations.
  • Be cautious on anything strange and suspicious about ATM machine or the premises like signs of tampering or attachment or additional fixtures etc.
  • Verify the statement of accounts periodically.
  • Exercise caution on unsolicited calls / e-mails relating to the ATM card.
    For assistance, contact ATM Monitoring Cell

Soft PIN Facility at ATMs

Keeping up with the constant stream of changes in the digital space, Bank has introduced various tech products to improve level of satisfaction and positive experience to our customers. We have enabled Soft PIN facility for providing better convenience to our customers. Soft PIN replaces printed ‘PIN- Mailers' and this can be generated by the customers themselves through ATMs. 

 

Soft Pin can be generated by the customers themselves through ATMs. No waiting time. No loss in transit. All customers who have registered their mobile number with Bank can use this facility. 

 

To know more about Soft Pin Faciliy, please click here.

Secure Page- Verified by Visa

 

What is Verified by Visa?

 

Verified by Visa is a new service that will let you use a personal password with your Federal Bank Visa card, giving you added assurance that only you can use your Federal Bank Visa card to make purchases over the Internet. 

 

How does it work?

 

Verified by Visa provides you with a password to protect your online transactions, just like you use your PIN at an ATM. Let's explain:

  • Select the goods or services you want from a Verified by Visa online store and proceed to the payment page
  • Enter your Federal Bank Visa Card number and the online store will connect with Federal Bank to check whether your Card is secured with Verified by Visa
  • Federal Bank initiates a Verified by Visa pop-up window on your computer screen that includes your Personal Message
  • Look for and confirm your Personal Message, then enter your password. Federal Bank will then confirm your identity to the merchant
  • Your payment is authorized and your order is placed. Simple!

How do I register?

  • Go to "Verified By Visa Link"
  • Click on 'Register'button
  • Click on 'I Accept' after reading Terms & Conditions
  • Enter the card details like card number, expiry date and the ATM PIN.
  • Enter your details like Name, Email id & Mobile number and create VBV password and a Personal Assurance Message(PAM).
On-The-Fly Registration is also possible:
  • Select the goods/services you want to purchase from online site and proceed to Payment page.
  • Enter your card details and the online store will check with Federal Bank whether your card is registered for VBV.
  • A VBV pop-up window will open.
  • Enter the card details like Card number, Expiry date and CVV2 Number.
  • If the card is not already registered, a Registration screen will appear. Enter ATM PIN, Email id & Mobile Number and create a VBV Password.
  • Federal Bank will confirm your identity to the merchant and you can successfully complete your shopping.

Secure Page - MasterCard SecureCode

 

What is MasterCard Secure Code?

 
MasterCard SecureCode is a security service to enhance your existing Master Card account. A private code means added protection against unauthorized use of your card when you shop at participating online retailers.
 
How does it work?
 
MasterCard Secure provides you with a password to protect your online transactions, just like you use your PIN at an ATM. Let's explain:
  • Select the goods or services you want from a MasterCard SecureCode online store and proceed to the payment page.
  • Enter your Federal Bank MasterCard SecureCode number and the online store will connect with Federal Bank to check whether your Card is secured with MasterCard SecureCode.
  • Federal Bank initiates a MasterCard SecureCode pop-up window on your computer screen that includes your Personal Message.
  • Look for and confirm your Personal Message, then enter your password. Federal Bank will then confirm your identity to the merchant.
  • Your payment is authorized and your order is placed. Simple!
How do I Register?
  • Go to "MasterCard SecureCode Link" 
  • Click on Register .
  • Click on 'I Accept' after reading Terms & Conditions.
  • Enter the card details like card number, expiry date and the ATM PIN.
  • Enter your details like Name, Email ID & Mobile Number and create MasterCard Secure Code Password and a Personal Assurance Message (PAM).
 On-The-Fly Registration is also possible:
  • Select the goods/services you want to purchase from online site and proceed to Payment page.
  • Enter your card details and the online store will check with Federal Bank whether your card is registered for VBV.
  • A MasterCard Secure Code pop-up window will open.
  • Enter the card details like Card number, Expiry date and CVV2 Number.
  • If the card is not already registered, a Registration screen will appear. Enter ATM PIN, Email id & Mobile Number and create a VBV Password.
  • Federal Bank will confirm your identity to the merchant and you can successfully complete your shopping.

Cash Passport Travel Card Security Tips

 

Important Advice to Customers

  1. Sign the reverse of both Cards immediately
  2. Read the combined Terms and Conditions and User Guide brochure provided with the Cards. Purchase and Use of the Card is in compliance with the Terms and Conditions.
  3. Register at  My Account on  the Cash Passport webpage to enable access to balances, transactions and support services
  4. Remember PIN and do not disclose to anyone. The PIN cannot be changed as it is embedded into the Chip. A PIN read back facility is available via the IVR and by logging into My Account at  Cash Passport site
  5. Two Cards are provided, a Primary and a spare Secondary Card. Keep the spare Card in a safe location separate to Primary Card so you can continue to transact if the Primary Card is lost or stolen. The spare Card is only available for use by the account holder/card purchaser who has been identified per anti-money laundering/knowyour-customer guidelines.
  6. The Cards can be used globally, however they cannot be used for transactions in India, Nepal or Bhutan due to FEMA restrictions
  7. The Card can be used to access local currency from ATMs and to pay for purchases wherever MasterCard is accepted, other than India, Nepal and Bhutan
  8. When using the card at ATMs or merchant terminals, always press CREDIT to access the MasterCard network
  9. All transactions must be authorized through the MasterCard network and therefore, cards will not work for manual transactions or at terminals operating in an ‘offline' capacity
  10. Where a terminal is Chip enabled, the cardholder will be required to enter the PIN.  Where the terminal is not Chip enabled, the cardholder will be required to sign for the transaction
  11. All cardholder queries should be directed in the first instance to the Cardholder Support Centre using the numbers included on the reverse of the Card or the extended list included in the Terms and Conditions brochure
  12. Fees and limits apply to the purchase and use of Federal Bank Cash Passport. The Table of Fees and Limits is included in the Terms and Conditions brochure. All fees will be added with applicable Service Tax.
  13. The Card is re-loadable within the validity period of the card, subject to Card limits and any applicable FEMA limits
  14. Cards are reloadable at authorized Federal Bank branches. Cards may be reloaded whilst overseas subject to the process outlined in the combined Terms and Conditions and User Guide Brochure.
  15. Emergency support services are provided to cardholders as detailed in the combined Terms and Conditions and User Guide brochure. To access, call the numbers included on the reverse of the Cards or available in the Terms and Conditions brochure or via Cash Passport webpage . Emergency support services include free Emergency Card Replacement and free Emergency Cash Disbursement in cases where both Cards have been lost or stolen.
  16. Cardholders can Cash Out or partially Cash Out their card at an authorized branch of Federal Bank. FEMA rules currently require balances greater then USD 2,000 equivalent to be cashed out within 180 days of return.

How to Use Cards Safely

 

SAFETY - FIRST AID CHECKLIST

  1. Sign your Cards immediately when you receive them
  2. Check your transactions regularly and report anything unusual immediately to the 24/7 Card Services team
  3. If you print statements from the internet, keep them safe and shred them when you've finished using them
  4. Never give your personal details to someone who phones you claiming to be from a reputable company
  5. Don't give out your details in response to unsolicited email
  6. Be wary of anyone who asks for common security details, like your mother's maiden     name, date of birth, or information about your work 
  7. Never give your PIN to anyone, not even if they claim to be from Federal Bank 
  8. Don't let yourself get distracted when using ATMs – somebody may be trying to get to  know your PIN
ATM FRAUD
  • Never write down a PIN or keep it together with the Card. Be very alert when using ATMs, and ensure:

¿ The machine has not been tampered with

¿ Nobody can watch you entering your PIN

¿ Card and cash are concealed and safe before you leave the machine

¿ You retain any printed records for safe disposal at a later time

  • If your Card is retained, contact Card Services immediately for assistance
COUNTERFEIT FRAUD
  • Always keep your Card in sight when making a purchase or it may get skimmed
  • "Skimming" occurs when the genuine data on a card's magnetic strip is electronically copied onto another card, allowing fraudsters to steal the funds on your card. This can happen at gas stations, restaurants, bars and at ATMs. Skimmed card information is often sold on to organized crime groups.
USING YOUR CARD ON THE INTERNET
  • Make sure that you're using a secure browser. A secure browser such as Microsoft Internet Explorer or Mozilla Firefox will indicate whether the website you are visiting is secure or not.
  • These browsers scramble your personal data before sending it, so no one else can read it. 
  • Ensure that your computer has up to date virus protection and a firewall will help protect you from attacks.
KEY POINTS WHEN BUYING GOODS/ SERVICES ON THE INTERNET
  1. Know who you are dealing with. Use a reputable company and type its internet address into the browser yourself
  2. Don't give out your details in response to unsolicited email
  3. If the website gives you the option of using a secure checkout; opt for "Yes"
  4. In case you need to return or exchange something, you need to keep a record of all transactions too. Print and save a copy of your completed order form and your order confirmation
PHISHING
  • "Phishing" is an attempt by fraudsters to "fish" or steal your card/account details. Phishing attempts usually appear as an email apparently from your bank or card issuer. Within the email, you are then encouraged to click on a link to a fraudulent log-in page, designed to capture your details. 
  • We may contact you by email, but we will NEVER ask you to click on a link that directs you to enter or confirm your security details.
  • If you are in any doubt about the authenticity of an email appearing to be from us, telephone Card Services immediately.
PHARMING
  • "Pharming" employs the same type of tricks as Phishing to lure you to a site address, but uses hidden software to redirect you from real websites to the fraudulent ones. 
  • This is particularly clever, as it hijacks trusted brands of well known banks, online retailers and card issuing companies and convinces you to respond under cover of trust to enter your personal details.
  • Remember: If you are asked to type your PIN into a website along with your Card details, it is probably a fraudulent website, and you should close the browser and contact Card Services immediately.
LOST AND STOLEN CARDS
  • If you lose your Cash Passport or it is stolen, reporting this to Card Services immediately will help protect the funds on the Card
  • Our dedicated team is on hand 24 hours a day, seven days a week, to help you get back to enjoying your travels.

Notice to Customers - International Debit Cards

Notice to Customers

 

Based on the  extant guidelines with regard to issuance and use of international debit cards, we have made the following changes with immediate effect:

 

  • Henceforth International Debit Card facility will be available for NRE & Resident Accounts only.
  • From 01.12.2013 onwards new International Debit Cards will be issued only against specific request with applicable charges, if any.
  • Existing International debit cards issued in NRE & Resident accounts (Individual/business) will continue to be available for International usage. 
  • International usage will be blocked in all other cards with immediate effect.
  • In order to protect our customers from fraudulent transactions, international usage of your Federal Bank Debit   Cards (Magnetic Stripe Cards issued prior to 1st Dec 2013 )will be limited to Rs. 30,000 / Day through all channels (ATM/POS/Ecommerce) from 1st Dec 2013.
  • As per RBI guideline, all Magnetic Stripe Debit Cards issued from 1st Dec 2013 will have no-international usage facility. Apply for EMV CHIP enabled Debit Card for added security.

How to detect fake notes?

 

A suspected forged note, counterfeit note or fake note is any note which does not possess the characteristics of genuine Indian currency notes.

 
You can identify a forged note if you know about the security features present in a genuine Indian currency note. These features are easily identifiable by seeing, touching and tilting the note. 
 
Reserve Bank is making efforts to address the problem in the following ways:
  • By periodically improving the security features of Indian banknotes so that the counterfeiters find it difficult to copy.
  • By ensuring that the banks have robust systems in place which will enable them to identify and detect forged notes immediately on their entry into the banking system.
  • By raising public awareness on genuine Indian currency notes.
  • By training of cash handlers on detection of forged notes.
  • By improving co-ordination between the banks and law enforcement agencies.
While receiving banknotes, it will be a good idea to develop the habit of checking the genuineness of the notes.
Reserve Bank of India has come up with a website where you can know more about Indian currency notes with denominations ranging from Rs.10 to Rs.1000. The unique security features implemented for each denomination will help you to identify whether a currency note is genuine.
 
Please visit the website http://www.paisaboltahai.rbi.org.in for details.
 
(Published for public awareness on genuine Indian currency notes)

NRE V/s NRO Accounts

 

Features Non Resident External(NRE) Accounts Ordinary Non-Resident(NRO) Accounts
Eligibility

NRE accounts can be opened by NRIs.

Joint account is permitted with another NRI.

Opening of NRE accounts jointly with residents is prohibited.

NRO accounts can be opened by all non residents. Not only NRIs but any foreign national or entities (except of Pakistani/Bangladesh nationality/ownership) can open such accounts. Joint accounts with other non residents or residents permitted.
Types of Accounts

All type of accounts like current, savings, fixed deposits and recurring deposits are permitted under the scheme.

NRO accounts can be opened as Savings, Current, Recurring or Term deposit
Permissible Credits
  • Foreign Currency Remittance from abroad in the form of TT, MT, DD, Personal cheque etc. The draft should be in the name of the account holder and not endorsed in his favour. The cheque should be drawn by the account holder on a foreign currency account  maintained by him abroad.
  • Proceeds of Indian Rupee drafts issued by Banks/Exchange Houses abroad.
  • Proceeds of foreign currency notes/travellers cheques tendered by the account holder in person during his visit to India . If the value of foreign currency notes exceed US$ 5000 or its equivalent and if the value of travellers cheque and currency notes together exceeds USD 10000 or its equivalent it should be supported by currency declaration form issued by customs authorities.
  • Interest/dividend/maturity proceeds of investment made in India on repatriation basis.
  • Refund of subscription to shares/securities where original payment is made by remittance from abroad or by debit to account holders NRE a/c
  • Transfer from NRE account of same person or another NRI.  
  • Remittance from abroad through banking channel.
  • Proceeds of foreign currency travellers cheques/currency notes by the account holder during his temporary visit to India.
  • Loans/advances availed against NRE/FCNR deposit of the account holder.
  • Proceeds of deposit/investment made on non repatriation basis.
  • Any other legitimated dues to the account holder in India including sale proceeds of gold and silver brought from abroad
Withdrawals

Withdrawals from NRE accounts are permitted for the following purpose.

  • Local disbursements.
  • Repatriation outside India in any form. However, repatriation in the form of travellers cheque/currency notes will be allowed for travel purpose only. Maximum value of currency note per person will be USD 2000 or its equivalent.
  •  Investment in shares/securities/immovable properties other than for engaging in agriculture and plantation activities/real estates business)

Amount held in NRO account can be withdrawn for:  

 

  • Local payments in Indian Rupee

 

  • Investments in shares/securities immovable properties on non repatriation basis subject to general or specific permission of Reserve Bank of India.
Operation by Power of Attorney

NRE accounts can be operated by resident attorneys for withdrawal for local payments and investment in shares and securities covered by the general or specific permission of Reserve Bank of India.

Power of Attorney holders are not permitted to open NRI accounts or repatriate outside India funds held in the accounts. They are also not authenticated to makes gifts from NRE accounts.

 
Repatriability Deposit made and interest accrued thereon can be repatriated outside India at any time.

Balance under NRO accounts can be repatriated outside India for any bonafide purpose, subject to production of declaration by the account holder under section 195 of Indian Income tax Act, duly verified and certified by a Chartered Accountant in the prescribed format subject to a maximum of USD 1.00 million per calendar year. Interest accrued on NRO account net of tax deducted at source can be credited to NRE account or repatriated outside India as and when required.

Taxability Interest accrued on NRE accounts are exempt from Indian Income Tax Act as far as the NRI is resident outside India. No wealth tax is payable for the amount outstanding in NRE accounts.

Normally, Income Tax @ 30.00% +3 % Education Cess ( total 30.90%) will be deducted at source by the Bank, on interest earned/paid in NRO accounts irrespective of the amount of Interest. The rates will be as per DTAA (Double Taxation Avoidance Agreement) agreed between India and various countries, in the case of depositors who are resident in those countries. Click here to see the list of countries and rates. This tax deducted at source can be claimed as refund by filing the return of Income as per Income Tax Act, provided the tax deducted is in excess of the tax due for the particular assessment year.

 

The TDS on interest earned on NRO deposit accounts shall be at 20% (for the current year the rate will be 20.60% including cess) only instead of 30% in the case of ONR accounts complying with the following conditions:

 

  • The deposit should be made out of the remittances in foreign exchange received from outside India.

 

  • The deposit should not have any amount deposited out of funds in India.
Advance against Deposits

Advance will be granted up to 90% of the deposit, with a maximum of Rs. 100L. Loan can be repaid by remittance from abroad, transfer from NRE/FCNR/NRO account of the borrower or liquidation of the deposit.

Advance to the extent of 90% of the deposit can be availed at a rate of interest of over 2% above the deposit rate plus interest tax.

 

What is KYC ?

Q 1. What is KYC? Why is it required?

 

KYC means "Know Your Customer". It is a process by which banks obtain information about the identity and address of the customers. This process helps to ensure that banks' services are not misused. The KYC procedure is to be completed by the banks while opening accounts and also periodically update the same.

 

Q 2. What are the KYC requirements for opening a bank account?

 

To open a bank account, one needs to submit a ‘proof of identity and proof of address' together with a recent photograph.

 

Q3. What are the documents to be given as ‘proof of identity' and ‘proof of address'?

 

The Government of India has notified six documents as ‘Officially Valid Documents (OVDs) for the purpose of producing proof of identity. These six documents are Passport, Driving Licence, Voters' Identity Card, PAN Card, Aadhaar Card issued by UIDAI and NREGA Card. You need to submit any one of these documents as proof of identity. If these documents also contain your address details, then it would be accepted as ‘proof of address'. If the document submitted by you for proof of identity does not contain address details, then you will have to submit another officially valid document which contains address details.

 

Q 4. If I do not have any of the documents listed above to show my ‘proof of identity', can I still open a bank account?

 

Yes. You can still open a bank account known as ‘Small Account' by submitting your recent photograph and putting your signature or thumb impression in the presence of the bank official.

 

Q 5. Is there any difference between such ‘small accounts' and other accounts

 

Yes. The ‘Small Accounts' have certain limitations such as:

·         balance in such accounts at any point of time should not exceed Rs.50,000

·         total credits in one year should not exceed Rs.1,00,000

·         total withdrawal and transfers should not exceed Rs.10,000 in a month.

·         Foreign remittances cannot be credited to such accounts.

Such accounts remain operational initially for a period of twelve months and thereafter, for a further period of twelve months, if the holder of such an account provides evidence to the bank of having applied for any of the officially valid documents within twelve months of the opening of such account.

 

Q 6. Would it be possible, if I do not have any of the officially valid documents, to have a bank account, which is not subjected to any limitations as in the case of ‘small accounts'?

 

A normal account can be opened for a low risk category customer by submitting a copy of any one of the following documents as ID proof:

(i) Identity card with person's photograph issued by Central/State Government Departments, Statutory/Regulatory Authorities, Public Sector Undertakings, Scheduled Commercial Banks, and Public Financial Institutions;

or

(ii) Letter issued by a gazetted officer, with a duly attested photograph of the person.

 

Q 7. Are banks required to categorise their customers based on risk assessment?

 

Yes, banks are required to classify the customers into ‘low', ‘medium' and ‘high' categories depending on their AML risk assessment.

 

Q 8. Do banks inform customers about this risk categorisation?

No

 

Q 9. If I refuse to provide requested documents for KYC to my bank for opening an account, what may be the result?

 

If you do not provide the required documents for KYC, the bank may not be able to open your account.

 

Q 10. Can I open a bank account with only an Aadhaar card?

 

Yes, Aadhaar card is now accepted as a proof of both, identity and address.

 

Q 11. What is e-KYC? How does e-KYC work?

 

e-KYC refers to electronic KYC. e-KYC is possible only for those who have Aadhaar numbers. While using e-KYC service, you have to authorise the Unique Identification Authority of India (UIDAI), by explicit consent, to release your identity/address through biometric authentication to the bank branches/business correspondent (BC). The UIDAI then transfers your data comprising name, age, gender, and photograph of the individual, electronically to the bank/BC. Information thus provided through e-KYC process is permitted to be treated as an ‘Officially Valid Document' under PML Rules and is a valid process for KYC verification.

 

Q 12. Is introduction necessary while opening a bank account?

 

No, introduction is not required.

 

Q 13. If I am staying in Chennai but if my address proof shows my address of New Delhi, can I still open an account in Chennai?

 

Yes. You can open a bank account in Chennai even if your permanent address is in New Delhi and you do not have a proof of address for your Chennai. In that case, you can submit an officially valid document (proof of address document) of your New Delhi address together with a declaration about your Chennai address, for communication purposes.

 

Q 14. Can I transfer my existing bank account from one place to another? Do I need to undergo full KYC again?

 

Yes, it is possible to transfer an account from one branch to another branch of the same bank. There is no need for KYC exercise again to transfer a bank account from one branch to another branch of the same bank. However, if there is a change of address, then you would have to submit a declaration about the current address. If the address in the ‘officially valid documents'/ ‘proof of address' is neither permanent nor current address, a new proof of address would be required within six months. In case of opening an account in another bank, however, you would have to undergo KYC exercise afresh.

 

Q 15. Do I have to furnish KYC documents for each account I open in the bank even though I have furnished the documents of proof of identity and address?

 

No, if you have opened an account with a bank, which is KYC compliant, then for opening another account with the same bank, furnishing of documents is not necessary.

 

Q 16. For which banking transactions do I need to quote my PAN number?

 

PAN number needs to be quoted for transactions, such as, account opening, transactions above Rs.50,000 (whether in cash or non-cash), etc. A full list of transaction where PAN number needs to be quoted can be accessed from website of Income Tax Department

 

Q 17. Whether KYC is applicable for Credit/Debit/Smart/Gift cards?

 

Yes. Full KYC exercise is necessary for Credit/Debit/Smart/for purchaser of Gift Cards and also in respect of add-on/ supplementary cards.

 

Q 18. I do not have a bank account. But I need to make a remittance. Is KYC applicable to me?

 

Yes. KYC exercise needs to be done for all those who want to make domestic remittances of Rs. 50,000 and above and all foreign remittances.

 

Q 19. Can I purchase a Demand Draft/Payment Order/Travellers Cheque against cash without KYC?

 

Demand Draft/Payment Order/Travellers Cheques for Rs.50,000/- and above can be issued only by way of debiting the customer's account or against cheques.

 

Q 20. Do I need to submit KYC documents to the bank while purchasing third party products (like insurance or mutual fund products) from banks?

 

Yes, all customers who do not have accounts with the banks (known as walk-in customers) have to produce proof of identity and address while purchasing third party products from banks if the transaction is for Rs.50,000 and above. KYC exercise may not be necessary for bank's own customers for purchasing third party products. However, instructions to make payment by debit to customers' accounts or against cheques for remittance of funds/issue of travellers' cheques, sale of gold/silver/platinum and the requirement of quoting PAN number for transactions of Rs.50,000 and above would be applicable to purchase of third party products from banks by bank's customers as also to walk-in customers.

 

Q 21. My KYC was completed when I opened the account. Why does the bank insist on doing KYC again?

 

Banks are required to periodically update KYC records. This is a part of the ongoing due diligence on bank accounts. The periodicity of such updation would vary from account to account or categories of accounts depending on the bank's perception of risk (2/8/10 years). Periodical updation of records also helps prevent frauds in customer accounts.

 

Q 22. What are the rules regarding periodical updation of KYC?

 

Different periodicities have been prescribed for updation of KYC records depending on the risk perception of the bank. KYC is required to be done at least every two years for high risk customers, at least every eight years for medium risk customers and ten years for low risk customers. This exercise would involve all formalities normally taken at the time of opening the account.

 

If there is no change in status with respect to the identity (change in name, etc.) and/or address, such customers who are categorised as ‘low risk' by the banks may now submit a self-certification to that effect at the time of periodic updation.

In case of change of address of such ‘low risk' customers, they could merely forward a certified copy of the document (proof of address) by mail/post, etc. Physical presence of such low risk customer is not required at the time of periodic updation.

Customers who are minors have to submit fresh photograph on becoming major.

 

Q 23. What if I do not provide the KYC documents at the time of periodic updation?

 

If you do not provide your KYC documents at the time of periodic updation bank has the option to close your account. Before closing the account, the bank may, however, impose ‘partial freezing' (i.e. initially allowing all credits and disallowing all debits while giving an option to you to close the account and take your money back). Later even all credits also would not be allowed. The ‘partial freezing' however, would be exercised by the bank after giving you due notice.

 

Q 24. How is partial freezing imposed?

 

Partial freezing is imposed in the following ways:

·         While imposing ‘partial freezing', banks have to give due notice of three months initially to the customers before exercising the option of ‘partial freezing'.

·         After that a reminder for further period of three months would be issued.

·         Thereafter, banks may impose ‘partial freezing' by allowing all credits and disallowing all debits with the freedom to close the accounts.

·         If the accounts are still KYC non-compliant after six months of imposing initial ‘partial freezing' banks may disallow all debits and credits from/to the accounts, rendering them inoperative.

·         Thus, one year after the account is due for updation, if you do not provide the necessary documents/information, your account would become fully inoperative i.e, neither credits nor debits would be allowed in the account.

Meanwhile, the account holders can revive accounts by submitting the KYC documents.

DTAA Benefits for NRO Fixed Deposits

 

Double Taxation Avoidance Agreement (DTAA) is an agreement entered by India with various countries- (Click here for the list of DTAA countries) Under the current DTAA provisions, you can enjoy concessional rate of Tax Deducted at Source (TDS), providing a higher yield as compared to the regular NRO FD offered today.

 

Please note that as per recent amendment to Section 90(2) of the Income Tax Act 1961 (Act) non residents have to provide "Tax Residency Certificate (TRC)" containing prescribed details issued by government authority of respective country in which they reside to avail benefit of reduced tax under Double Taxation Avoidance Agreement (DTAA). CBDT has prescribed the contents of TRC vide notification no. 39 dated September 17, 2012. Accordingly, all nonresident customers who wish to avail benefit of DTAA rates for their interest earned on NRO Deposits for FY 2013-14 (from 01.04.2013) and onwards have to mandatorily provide the " Tax Residency Certificate (TRC) " containing prescribed details to the bank. Please note that DTAA benefits cannot be given if TRC is not submitted.

 

Important links to provisions of DTAA and amended Section 90 of the Act are given below:

 

Further details on DTAA agreements between India and other countries

Existing Section 90 of Finance Act 2012

Amendment in the Finance Act. 

 

You may download the file containing set of contents of TRC which may be provided to your tax/government authority to obtain a TRC.

 

List contents required in Tax Residency Certificate 

 

Disclaimer:  Please note that contents of TRC are specified for your convenience so that you do not miss out any contents to be prescribed on the TRC. You should check in your country if there is any format of TRC issued or whether the format includes all the contents listed.

 

In case you have already submitted documents to avail of DTAA benefit or want to avail of DTAA for the current financial year 2013-2014, you are requested to submit a latest TRC and PAN copy to avail of DTAA for the financial year 2013-2014, failing which the bank will deduct TDS on your NRO accounts at 30.9% which cannot be refunded. 

Why should you have Aadhaar card?

 

Aadhaar is a 12-digit unique identification (UID) number which the Unique Identification Authority of India (UIDAI) is issuing for all Indian residents.

 

The Unique Identification Authority of India (UIDAI) is an agency of the Government of India responsible for implementing the AADHAAR scheme, a unique identification project. It was established in February 2009, and will own and operate the Unique Identification Number database. The authority aims to provide a unique id number to all Indians, but not smart cards. The UID number is stored in a centralised database and linked to the basic demographics and biometric information – photograph, fingerprints and iris – of each individual. The authority will maintain a database of residents containing biometric and other data.

 

The Aadhaar card can be used to identify the individual in any part of the country, so even if a person travels, this card will be sufficient to establish or verify his identity. Also, there are various citizen benefits that can be availed with this card.

 

How can I get Aadhaar Card?

 

Residents of India need to visit the nearest Enrollment Camp and need to fulfill the formalities  in order to register for an Aadhaar.

 

  • Documents Verification.
  • Biometric Scanning of Ten Fingerprints.
  • Biometric Scanning of Iris.
  • Photograph.

 

The following documents are required while applying for aadhaar UID card.

 

Proof of name and photo identity: (any one from list below)

 

  • Passport/PAN card/Ration/PDS photo card/Voter ID/Driving license/Government photo ID cards/
  • NREGS job card/Photo ID issued by recognised educational institute etc.

 

Proof of address: (any one from list below):

 

  • Passport/Bank Statement/Passbook/Post Office/Account Statement/Passbook/
  • Ration Card/Voter ID /Driving License/Government Photo ID cards/Electricity Bill (not older than 3 months)/Water bill (not older than 3 months)/Telephone Landline Bill (not older than 3 months)/
  • Property Tax Receipt (not older than 3 months)/Credit Card Statement (not older than 3 months)
  • Insurance Policy etc.

 

It is advised that you should link your Aadhaar number with your bank accounts:

 

Benefits of linking Aadhaar number with bank accounts

 

  • Direct credit of subsidies from government that include LPG, Kerosene, Sugar etc.
  • Direct credit of welfare funds, pensions, scholarship, MNREGA wages etc from Government.
  • Aadhaar is a valid Know your Customer (KYC) document to open bank accounts.
  • Aadhaar enabled accounts ensure reduction in leakages of government spending
  • The online, inter-operable architecture of Aadhaar Enabled Payment System (AEPS) allows a resident to access his account from anywhere in the country and in the near future through any delivery channel e.g. ATMs, microATMs etc.

 

If you are an existing customer all you have to do is to step in to your nearest branch with a copy and original of your Aadhaar card.

If you are a new customer you may please produce the copy and original of your Aadhaar card at the time of account opening.
 

Have queries about Aadhaar Card ?

 

If you have any queries about Aadhaar Card, please visit the website of Unique Identification Authority of India (UIDAI) - http://uidai.gov.in/