KYC

Know Your Customer (KYC)

 

The RBI has issued guidelines on 'Know Your Customer' (KYC) Guidelines - Anti Money Laundering Standards for NBFCs thereby setting standards for prevention of money laundering activities and corporate practices while dealing with their customers. The Company shall adopt all the best practices prescribed by RBI from time to time and shall make appropriate modifications if any necessary to this Policy to conform to the standards so prescribed. This Policy is applicable across all branches /business segments of the Company, and its financial subsidiaries and is to be read in conjunction with related operational guidelines issued from time to time. The contents of the Policy shall always be read in tandem/auto-corrected with the changes/modifications which may be advised by RBI from time to time. For the purpose of this Policy, a ‘customer’ is defined as a person who is engaged in a financial transaction or activity with a reporting entity and includes a person on whose behalf the person who is engaged in the transaction or activity, is acting.

OBJECTIVE

The objective of KYC guidelines is to prevent the Company from being used, intentionally or unintentionally, by criminal elements for money laundering activities. KYC procedures also enable the Company to know/understand their customers and their financial dealings better which in turn help them manage their risks prudently. The Company hereunder frames its KYC policies incorporating the following four key elements:

  1. Customer Acceptance Policy
  2. Customer Identification Procedures;
  3. Monitoring of Transactions; and
  4. Risk management

CUSTOMER IDENTIFICATION PROCEDURE FEATURES TO BE VERIFIED AND DOCUMENTS THAT MAY BE OBTAINED FROM CUSTOMERS

IDENTITY PROOF (INDIVIDUAL)

  1. Passport;
  2. Photo PAN card;
  3. Voter’s Identity Card;
  4. Laminated Driving license – Permanent;
  5. Employee ID card (MNCs / PSUs / Public Limited Companies/Other Government companies and Pvt. Ltd. Co);
  6. Photo Ration Card;
  7. Photo Debit Card;
  8. Bankers’ verification/passbook with stamp on photograph along with applicant’s signature. This can be accepted provided it contains customer's photo and signature, a/c number, date of opening, branch name, address and it shall be certified only by the Branch Manager or Operations Head with their name & designation;
  9. Defence ID Card; or Any other documents as acceptable to the company
  10. Photo credit Card - provided the card is valid & current and is at least 3 months old.

ADDRESS PROOF (INDIVIDUAL)

  1. Telephone Bill;
  2. Life Insurance Premium receipt of any insurer ( Policy shall be minimum 12 months in force);
  3. Post paid Piped gas connection bill showing consumption and full address;
  4. Electricity Bill;
  5. Ration Card;
  6. Voter’s Identity Card;
  7. Laminated Driving license – Permanent;
  8. Passport;
  9. Copy of sale agreement if current residence is owned;
  10. Leave & License agreement if the applicant is staying on rent & the agreement is registered / notarized. Wherever notarized Leave & License agreement is taken, the notarization shall be in original & the agreement shall be executed on a stamp paper as per the respective State Stamp Act Applicable to lease deed also;
  11. Post Paid Mobile Bills;
  12. Bank Passbook/ Latest Bank Account Statement (first page of the same with full address mentioned which matches with the applicant's address as per the Application form). In case of a Bank Passbook, the page showing the latest banking transaction shall be taken on record;
  13. Front Copy of the Credit Card and latest Card statement;
  14. Municipality Water Bill;
  15. Municipal tax receipt/ Property tax receipt;
  16. Office Identity card mentioning the address (MNCs/PSUs/Public Limited Companies/Other Government companies) OR letter from employer if the applicant stays in the company provided accommodation); or
  17. All utility bills and credit card statements shall be less than 3 months old
  18. Any other documents as acceptable to the company

SIGNATURE VERIFICATION (INDIVIDUAL)

  1. Passport;
  2. Laminated Driving license – Permanent;
  3. PAN Card;
  4. Bankers Verification;
  5. Photo Debit Card with scanned signatures;
  6. Copy of entire Registered Sale deed showing Photo & signature;
  7. Photo credit Card with scanned signatures - provided the card is valid & current and is at least 3 months old; or;
  8. Government ID card for govt. Employees;
  9. Confirmation by the employee of the company if the signatures are done in the presence of an authorised person.

KYC Document for Proprietorship

Any two of the following documents or the equivalent e-documents thereof in the name of the proprietary concern needs to be obtained as a proof of business/activity if the loan is in the name of Proprietorship Firm (Main Applicant)

  1. Registration certificate
  2. Certificate/licence issued by the municipal authorities under Shop and Establishment Act.
  3. Sales and income tax returns.
  4. CST/VAT/GST certificate (provisional/final).
  5. Certificate/registration document issued by Sales Tax/Service Tax/Professional Tax authorities.
  6. IEC (Importer Exporter Code) issued to the proprietary concern by the office of DGFT / Licence/certificate of practice issued in the name of the proprietary concern by any professional body incorporated under a statute.
  7. 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.
  8. Utility bills (electricity, water, and landline telephone bills not more than two months old).
  9. Bank account Statement of last six months in the name of the entity (not from a non-scheduled cooperative bank) alongwith positive Field investigation report.

AND

  1. Any one of the Officially valid documents or the equivalents e-documents of the Proprietor(as specified in Section I )
  2. Permanent Account Numbers or the equivalent e –documents thereof or Form 60 as defined in the Income-tax Rules, 1962, issued to the proprietor.

Note:

In case one document is collected as activity proof for proprietorship concerns instead of two; then Contact Point Verification (CPV) is mandatory and cannot be waived.

KYC Document for Companies

Certified copy of each of the following documents or the equivalents e- documents shall be obtained:

  1. Certificate of incorporation;
  2. Memorandum and Articles of Association;
  3. Permanent Account Number of the Company
  4. A resolution from the Board of Directors and power of attorney granted to its managers, officers or employees to transact on its behalf;

AND

  1. Any one of the Officially valid documents or the equivalents e-documents ( as specified in Section I )
  2. Permanent Account Numbers or equivalent e-documents thereof or Form 60 as defined in the Income-tax Rules, 1962, issued to managers, officers or employees holding an attorney to transact on the company’s behalf

KYC Document for Partnership Firms

Certified copy of each of the following documents or the equivalents e-documents thereof shall be obtained:

  1. Registration certificate;
  2. Partnership deed; and
  3. Permanent Account Number of the partnership firm

AND

  1. Any one of the Officially valid documents or the equivalents e-documents (as specified in Section I )
  2. Permanent Account Number or equivalent e-documents thereof or Form 60 as defined in the Income-tax Rules, 1962, issued to the person holding an attorney to transact on its behalf
  3. KYC Document for Trusts and Foundations
  4. Certified copy of each of the following documents or the equivalents e-documents shall be obtained:
  5. Registration certificate;
  6. Trust deed; and
  7. Permanent Account Number or Form 60 of the trust

AND

  1. Any one of the Officially valid documents or the equivalents e-documents (as specified in Section I )
  2. Permanent Account Number or equivalent e-documents or Form 60 as defined in the Income-tax Rules, 1962, issued to the person holding an attorney to transact on its behalf

KYC Document for Unincorporated association or a body of individuals

Certified copy of each of the following documents or the equivalents e-documents shall be obtained:

  1. Resolution of the managing body of such association or body of individuals;
  2. Power of attorney granted to him to transact on its behalf;
  3. Permanent Account Number of Form 60 of the unincorporated association or a body of individuals

AND

  1. Any one of the Officially valid documents or the equivalents e-documents (as specified in Section I )
  2. Permanent Account Number or equivalent e-documents or Form 60 as defined in the Income-tax Rules, 1962, issued to the person holding, an attorney to transact on its behalf.
  3. Such information as may be required by the company to collectively establish the legal existence of such an association or body of individuals.

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

Explanation: Term 'body of individuals' includes societies.

KYC Document for Juridical person such as societies, universities and local bodies like village panchayats

Certified copy of each of the following documents or the equivalents e-documents shall be obtained:

  1. Document showing name of the person authorised to act on behalf of the entity;

AND

  1. Any one of the Officially valid documents or the equivalents e-documents (as specified in Section I )
  2. Permanent Account Number or equivalent e-documents or Form 60 as defined in the Income-tax Rules, 1962, issued to the person holding, an attorney to transact on its behalf.
  3. Such documents as may be required by the Company to establish the legal existence of such an entity/juridical person.