Your bank wants to know u

And now we are going to start

interesting topic KYC norm
KNOW YOUR CUSTOMER
 WHAT IS KYC?

KYC (KNOW YOUR CUSTOMER) IS A FRAMEWORK FOR BANKS

WHICH ENABLES THEM TO KNOW / UNDERSTAND THE

CUSTOMERS AND THEIR FINANCIAL DEALINGS TO BE ABLE

TO SERVE THEM BETTER.

OR IN THE SIMPLE WAY WE CAN SAY THAT:

IT IS A PROCESS BY WHICH BANKS OBTAIN INFORMATION

ABOUT THE IDENTITY AND ADDRESS OF THE CUSTOMERS

OBJECTIVES OF KYC
To enable the Bank to have positive
identification of its relationship

Is in the interest of customers to safeguard their

hard earned money
WHEN DOES KYC APPLY?

KYC will be apply on the following stages:

Opening a new account
In respect of accounts where documents as per current KYC
standards have not been submitted while opening the initial
account
Opening a Locker Facility where these documents are not
available with the Bank for all the Locker facility holders
When the Bank feels it necessary to obtain additional
information from existing customers based on conduct of
account
When there are changes to signatories, mandate holders,
beneficial owners etc.
For non-account holders approaching the Bank for high
value one-off transactions like Drafts, Remittances etc.
 PROOF NEEDED FROM
CUSTOMERS REGARDING
KYC
RBI MANDATES THREE PROOFS TO BE COLLECTED FROM
CUSTOMERS:

PHOTOGRAPH

PROOF OF IDENTITY

PROOF OF ADDRESS

THESE ARE TO BE SUBMITTED BY THE CUSTOMER BOTH AT THE TIME

OF OPENING OF ACCOUNT AS WELL AS AT THE TIME OF CHANGE OF
ADDRESS.
Small Deposit Accounts

SMALL DEPOSIT ACCOUNTS ARE THOSE ACCOUNTS

WHERE,
BALANCE DOES NOT EXCEED RS. 50,000/- AND
ANNUAL TURNOVER DOES NOT EXCEED RS. 1,00,000/-

SIMPLIFIED KYC NORMS PRESCRIBED FOR SMALL

DEPOSIT ACCOUNTS

CUSTOMERS CAN OPEN THIS TYPE OF ACCOUNTS BY

GETTING INTRODUCED BY EXISTING FULLY KYC
COMPLIANT ACCOUNT AS ALSO ATTESTATION OF
ADDRESS / PHOTOGRAPH BY HIM.
Contact Point in Banks for KYC

CONTACT POINT FOR CUSTOMERS IN THE BANK WILL BE THE

RELATIONSHIP MANAGER / OFFICIAL WHO OPENS THE ACCOUNT
AND IS THE CONTACT PERSON DURING TRANSACTIONS
Now some basic point that all should know:
Know? What you should know?
True identity and personal information, address, financial information and beneficial
ownership of the accounts
Your? Who should know?
Branch employee, Relationship manager, all Bank employees.
Customer?
One who maintains an account, establishes business relationship, on whos behalf
account is maintained, and one who carries potential risk through one off
transaction.
 IF U ALL DONOT
UNDERSTAND DONOT
WORRY I WILL EXPLAIN
IT IN VERY SIMPLE WAY :

Please fill the KYC

detail in the
account opening
form an submit the
necessary
documents.
KYC :KNOW YOUR
COUSTMER

So can you give

some more
information? RBI says the
What do you bank must
do? Where do know the
you live? customer
before
opening an
account

Why KYC?
why do u
need
documents?
KYC:KNOW YOUR CUSTOMER

Why? Why is
RBI
asking
Ho banks to
w? follow
kyc
process?

How do I know Why

my customer? should we
give
documents
for deposit
our
money?
ANTI MONEY LAUNDERING

KYC is an
important
element of
AML process

Laundering means washing.

Does money laundering
means washing money?
Then what is anti money
laundering?
How is KYC part of AML
process?
 I have to
KYC AND AML check
whether any
illegal
transaction
Covert black is behind the
money through money.
bank What is the
source of
money?
what
I have business do
got Rs 5 you do?
lakhs. I please give
want to me your KYC
open a document.
new
account
HELP US TO HELP YOU
BY BEING PATIENT WHEN A BANK STAFF
ASKS YOU TO PROVIDE DOCUMENTS TO
PROVE YOUR IDENTITY / ADDRESS
BY MAINTAINING CONFIDENTIALITY OF
YOUR ACCOUNT DETAILS AND IDENTITY
DOCUMENTS