Types of kyc documents required for various customer

Types of kyc documents required for various customer in bank account

1. KYC DOCUMENTS REQUIRED FOR
VARIOUS TYPES OF CUSTOMERS

2. KNOW YOUR CUSTOMER (KYC)
❖Banks/FIsneedtoobtainsufficientinformationtoestablish,totheir
satisfaction,theidentityofeachnewcustomer,whetherregularor
occasional,andthepurposeoftheintendednatureofthebanking
relationship.
❖Theofficiallyvaliddocumentswillservethepurposeforboth
identificationofcustomerandalsotheaddressproofofcustomer.
❖GovernmentofIndia,videGazetteNotificationG.S.R.108(E)dated
February13,2019,hasnotifiedamendmentstothePreventionof
Money-laundering(MaintenanceofRecords)Rules,2005.Further,an
Ordinance,“AadhaarandotherLaws(amendment)Ordinance,2019”,
hasbeennotifiedbytheGovernmentamending,interalia,the
PreventionofMoneyLaunderingAct,2002.

3. OFFICIALLY VALID DOCUMENT
(OVD)
ThebelowmentionedsixOfficiallyValidDocuments(OVD)
willservethepurposeforbothidentificationandaddress
proofofcustomer.
1)Passport(withinvalidity)
2)DrivingLicense(withinvalidity)
3)proofofpossessionofAadhaarnumber
4)Voter’sIdentityCard
5)JobCardissuedbyNREGA
6)TheletterissuedbytheNationalPopulationRegister
containingdetailsofname&address.

4. OVD FOR THE LIMITED PURPOSE
0F PROOF OF ADDRESS
WheretheOVDfurnishedbythecustomerdoesnothaveupdated
address,thefollowingdocumentsshallbedeemedtobeOVDsforthe
limitedpurposeofproofofaddress:-
1)Utilitybillwhichisnotmorethantwomonthsoldofanyserviceprovider
(electricity,telephone,post-paidmobilephone,pipedgas,waterbill);
2)PropertyorMunicipalTaxreceipt;
3)BankaccountorPostOfficesavingsbankaccountstatement;
4)Pensionorfamilypensionpayment orders(PPOs)issuedtoretired
employees;
5)Letterofallotmentofaccommodation fromemployerissuedbyStateor
CentralGovernment departmentsandPSU;and
6)Documents issuedbyGovernment departments offoreignjurisdictions
andletterissuedbyForeignEmbassyorMissioninIndia.
ThecustomershallsubmitOVDwithcurrentaddresswithinaperiod
ofthreemonthsofsubmittingthedocumentsspecifiedatabove.

5. SMALL ACCOUNT
IncaseanindividualcustomerwhodoesnotpossessanyoftheOVDsanddesiresto
openabankaccount,banksshallopena‘SmallAccount’,whichentailsthefollowing
limitations:
i.theaggregateofallcreditsinafinancialyeardoesnotexceedRs.1lakh;
ii.theaggregateofallwithdrawalsandtransfersinamonthdoesnotexceedrupeesten
thousand;and
iii.thebalanceatanypointoftimedoesnotexceedrupeesfiftythousand.
Provided,thatthislimitonbalanceshallnotbeconsideredwhilemaking
depositsthroughGovernmentgrants,welfarebenefitsandpaymentagainst
procurements.
Further,smallaccountsaresubjecttothefollowingconditions:
(a)Thebankshallobtainaself-attestedphotographfromthecustomer.
(b)Thedesignatedofficerofthebankcertifiesunderhissignaturethattheperson
openingtheaccounthasaffixedhissignatureorthumbimpressioninhispresence.
(c)Theaccountshallremainoperationalinitiallyforaperiodoftwelvemonthswhich
canbeextendedforafurtherperiodoftwelvemonths,providedtheaccountholder
appliesandfurnishesOVD.

6. CUSTOMER DUE DILIGENCE
(CDD)
➢Meansidentifyingandverifyingthe
customerandthebeneficialownerusing
‘OfficiallyValidDocuments’asa‘proofof
identity’anda‘proofofaddress’.
➢Documentsneededforverificationof
varioustypesofclientsduringopeningof
bankaccount.

7. DOCUMENTS NEEDED OF VARIOUS TYPES OF
CLIENTS DURING OPENING OF BANK ACCOUNT
Various types of clients are as under:
❖Individuals Account
❖Self Help Groups (SHG)
❖Sole Proprietary Firms
❖Company Account
❖Partnership Firm
❖Trust Account
❖Association of Persons
❖Juridical Persons such as Societies, Universities
and Local Bodies like Village Panchayat s ETC.

8. INDIVIDUALS ACCOUNT
ForundertakingCDD,bankshallobtainthefollowingfroman
individualwhileestablishinganaccount-basedrelationshipor
whiledealingwiththeindividualwhoisabeneficialowner,
authorisedsignatoryorthepowerofattorneyholderrelatedto
anylegalentity:
(a)acertifiedcopyofanyOVDcontainingdetailsofhisidentity
andaddress,
(b)onerecentphotograph,
(c)thePermanentAccountNumberorFormNo.60asdefined
inIncome-taxRules,1962,and
(d)suchotherdocumentspertainingtothenatureofbusiness
orfinancialstatusspecifiedbythebankintheirKYCpolicy.

9. EXTENDED CUSTOMER DUE
DILIGENCE (CDD)
➢Ifthereischangeinnameduetomarriage-forthisclause,a
documentshallbedeemedtobeanOVDevenifthereisachange
inthenamesubsequenttoitsissuanceprovideditissupportedby
amarriagecertificateissuedbytheStateGovernmentGazette
notification,indicatingsuchachangeofname.
➢KYCverificationoncedonebyonebranch/officeoftheBankshall
bevalidfortransferoftheaccounttoanyotherbranch/officein
theBank,providedfullKYCverificationhasalreadybeendonefor
theconcernedaccountandthesameisnotdueforperiodic
updation.
9

10. SIMPLIFIED NORMS FOR
SELF HELP GROUPS (SHGS)
(a)CDDofallthemembersofSHGshallnotbe
requiredwhileopeningthesavingsbankaccountof
theSHG.
(b)CDDofalltheofficebearersshallsuffice.
(c)NoseparateCDDaspertheCDDprocedure
mentionedoftheMDofthemembersoroffice
bearersshallbenecessaryatthetimeofcredit
linkingofSHGs.

11. SOLE PROPRIETARY FIRMS
Foropeninganaccountinthenameofasoleproprietaryfirm,
CDDoftheindividual(proprietor)shallbecarriedout.In
additiontotheabove,anytwoofthefollowingdocumentsas
aproofofbusiness/activityinthenameoftheproprietary
firmshallalsobeobtained:
(a)Registrationcertificate
(b)Certificate/licenceissuedbythemunicipalauthorities
underShopandEstablishmentAct.
(c)Salesandincometaxreturns.
(d)CST/VAT/GSTcertificate(provisional/final).
(e)Certificate/registrationdocumentissuedbyGoodsand
ServiceTax/ProfessionalTaxauthorities.

12. SOLE PROPRIETARY FIRMS
(f)IEC(ImporterExporterCode)issuedtotheproprietaryconcern
bytheofficeofDGFT.
(g)CompleteIncomeTaxReturn(notjusttheacknowledgement)in
thenameofthesoleproprietorwherethefirm'sincomeis
reflected.
(h)Utilitybillssuchaselectricity,water,landlinetelephonebills,
etc.
Incaseswherethebanksaresatisfiedthatitisnotpossibleto
furnishtwosuchdocuments,banksmay,attheirdiscretion,accept
onlyoneofthosedocumentsasproofofbusiness/activity.
Providedbanksundertakecontactpointverificationandcollect
suchotherinformationaswouldberequiredtoestablishthe
existenceofsuchfirm,andshallconfirmandsatisfyitselfthatthe
businessactivityhasbeenverifiedfromtheaddressofthe
proprietaryconcern.

13. COMPANY ACCOUNT
(a)Certificateofincorporation.
(b)Memorandum andArticlesofAssociation.
(c)PermanentAccountNumberofthecompany.
(d)CompanyidentificationNumber(CIN)assignedbythe
ROC.
(e)AresolutionfromtheBoardofDirectorsandpower
ofattorneygrantedtoitsmanagers,oremployeesto
transactonitsbehalf.
(f)Documents,asspecifiedincaseofindividual,ofthe
managers,officersoremployees,asthecasemaybe,
holdinganattorneytotransactonthecompany’sbehalf.

14. PARTNERSHIP FIRM
(a)Registrationcertificate,
(b)Partnershipdeed,
(c)PermanentAccountNumber(PAN)of
thepartnershipfirm,
(d)Documents,asspecifiedincaseof
individual,ofthepersonholdingan
attorneytotransactonitsbehalf.

15. TRUST ACCOUNT DOCUMENTS
(a)Registrationcertificate,
(b)Trustdeed,
(c)PermanentAccountNumberorFormNo.
60ofthetrust,
(d)Documents,asspecifiedincaseof
individual,ofthepersonholdingan
attorneytotransactonitsbehalf.

16. ASSOCIATION OF PERSONS
(a)Resolutionofthemanagingbodyofsuchassociationor
bodyofindividuals;
(b)PermanentAccountNumberorFormNo.60ofthe
unincorporatedassociationorabodyofindividuals;
(c)Powerofattorneygrantedtotransactonitsbehalf;
(d)Documents,asspecifiedincaseofindividual,oftheperson
holdinganattorneytotransactonitsbehalf,and;
(e)Suchinformationasmayberequiredbythebankto
collectivelyestablishthelegalexistenceofsuchanassociation
orbodyofindividuals.

17. JURIDICAL PERSONS NOTSPECIFICALLY
COVERED INTHEEARLIERPART,SUCHAS
SOCIETIES, UNIVERSITIES AND LOCAL
BODIESLIKEVILLAGEPANCHAYAT SETC.
(a) Document showing name of the person authorised to
act on behalf of the entity;
(b) Documents, as specified in case of individual, of the
person holding an attorney to transact on its behalf; and
(c) Such documents as may be required by the RE to
establish the legal existence of such an entity/juridical
person.

18. CENTRAL KYC REGISTRY (CKYCR)
➢CentralKYCRegistryisacentralizedrepositoryofKYCrecords
ofcustomersinthefinancialsectorwithuniformKYCnorms
andinter-usabilityoftheKYCrecordsacrossthesector.
➢ItsobjectivetoreducetheburdenofproducingKYC
documentsandgettingthoseverifiedeverytimewhenthe
customercreatesanewrelationshipwithafinancialentity.
➢BanksshallcapturetheKYCinformationforsharingwiththe
CKYCRinthemannermentionedintheRules,asrequiredby
therevisedKYCtemplatespreparedfor‘individuals’and
‘LegalEntities’asthecasemaybe.

19. PERIODIC UPDATION OF
KYC DOCUMENTS
Periodicupdationshallbecarriedoutat
least:
✓onceineverytwoyearsforHighRisk
Customers,
✓onceineveryeightyearsforMedium
RiskCustomers,and
✓onceineverytenyearsforLowRisk
Customers.

20. For more details, you may visit the website
https://rbidocs.rbi.org.in/rdocs/notification/PDFs/MD18KYCF6E
92C82E1E1419D87323E3869BC9F13.PDF