2. BANK CUSTOMER
Introduction
One who has an account with any branch of a bank is said
to be that bank’s customer.
• Anyone can open an account with a bank provided he or
she is sound of mind and can provide KYC
documents.
• KYC stands for ‘KNOW YOUR CUSTOMER’.
These documents are:
1. Photo id: PAN Card, License
2. Address proof: Aadhar Card, Electricity Bill, Ration Card.
Banks are required to frame their KYC policy basis the 4 key pilla
4. CUSTOMER ACCEPTANCE POLICY
No account should be opened in
fictitious name.
Low, Medium and high risk
Nature of business
Turnover
Volume of transactions and financial
status
Person should not have any criminal
5. CUSTOMER IDENTIFICATION
PROCEDURE
Establishing the customer identity
Verifying data.
-e.g. Passport, voter ID, aadhar card, PAN
card, utility bills etc. and a photograph.
Identification should repeat
Every two years For high risk
customers
Once in 10 years For low risk customers
Once in 8 years For medium risk
6. MONITORING OF
TRANSACTIONS
Background of the customer
Source of funds
Nature of business
Levels of transaction
Very high turnover in small
accounts
Identification of any deviation
from the
7. RISK MANAGEMENT
Overviewed by senior resources
Accounts are regularly monitored
Bank must be devise risk profile for
their new as well as existing
customers.
Any deviation in the volume or type of
transactions must be immediately
flagged off.
9. A. Individual Customers
Accounts in the name of literate
person/s
Accounts in the name of illiterate
person/s
Accounts in the name of blind
customers
Accounts in the name of minors
10. B. Non Individual customers
Account of Hindu Undivided Family (HUF).
Accounts of Partnership Firms
Accounts of Limited Companies
Accounts of non- trading Institutions such as Clubs, Schools
etc.
Accounts of Trusts
Accounts of Executors and Administrators
Accounts of Statutory Corporations
Accounts of Cooperative Societies
Accounts of Associations registered under Societies
Registration Act, 1860.