Quick Success Series - Technology - Testkart.com€¦ · · 2017-06-25Email- [email protected] Updated up to st31 October2016 QUICK SUCCESS SERIES, an initiative of SBLC Deoghar

Quick Success Series

KYC & AML GUIDELINES

Updated By: J .K Arun Manager (Training), SBLC Deoghar Mobile- 9801002594 Email- [email protected]

Updated up to 31st October2016

QUICK SUCCESS SERIES, an initiative of SBLC Deoghar to facilitate the preparation of promo-tion seeking personnel of our Bank, appears to have succeeded in its objective to a large ex-tent, as the readers are still approaching us for its revision/updation despite availability of plenty of other study materials.

We would not have been able to sustain this unique effort of ours, without the active support and continuous encouragement of our DGM cum Circle Development officer Sri Bijayananda Padhi. We are deeply indebted to him for his co-operation and guidance. Kumar Priyank, Chief Manager (Training), Rakesh Roshan, Chief Manager (Training), Sanjay Kumar Sharma, Manager (Training) and Jitendra Kumar Arun at this SBLC have owned up this project and have taken pains to keep it relevant to the users by updating & improving it at half yearly interval.

Though every care has been taken while updat-ing the contents, we request our readers to point out any lapses at the earliest. Needless to mention this book is not a substitute of circular instructions issued by the Bank from time to time. For detailed guidelines please refer to Bank’s latest circulars. Soft copy of this edition is available on our ftp://10.151.51.33 in QSS folder and on SBI TIMES>PATNA CIRCLE>SBLC Deoghar site. Team SBLC Deoghar is humbled by the response and recognition, it is receiving from the readers within and beyond the circle. We wish the readers grand success in their endeavours.

Abhishek Kumar Sharma

Assistant General Manager, State Bank Learning Centre, Deoghar- 814112 Phone- 06432-232895 Fax - 06432-231810 E-mail: [email protected]

ftp://10.151.51.33/

QUICK SUCCESS SERIES KYC & AML GUIDELINES

Updated up to 31st October 2016

SBLC DEOGHAR

Our Bank has been observing 1st August every

year as "KYC compliance and Fraud Prevention Day" in order to create awareness about KYC compliance and fraud prevention, among the staff.

It has been decided to observe 1st September every year as “Risk Awareness Day / Jokhim Ja-grukta Diwas” in the Bank.

It has been decided to observe 2nd November, every year as “AML-CFT Day” in the Bank.

OFFICIALLY VALID DOCUMENT (OVD) The Officially Valid Documents constitute of Driv-ing license, Voter’s Identity card issued by Election Commission of India, Job card issued by NREGA duly signed by an officer of the State Government and Letter issued by the Unique Identification Au-thority of India containing details of name, ad-dress and Aadhaar number.

The Government has since amended the Preven-tion of Money Laundering (Maintenance of Records) Rules, 2005 providing additional relaxa-tions for the purpose of proof of address in addi-tion to the relaxations in proof of identity under ‘simplified measures’ as contained in paragraph 2(d) of PML Rules.

For the limited purpose of proof of address the following additional documents are deemed to be OVDs under ‘simplified measures’. a) Utility bill which is not more than two months old of any service provider (electricity, telephone, postpaid mobile phone, piped gas, water bill); b) Property or Municipal Tax receipt; c) Bank account or Post Office savings bank ac-count statement; d) Pension or family pension payment orders (PPOs) issued to retired employees by Govern-ment Departments or Public Sector Undertakings, if they contain the address; e) Letter of allotment of accommodation from employer, issued by State or Central Government departments, statutory or regulatory bodies, pub-lic sector undertakings, scheduled commercial banks, financial institutions and listed companies. Similarly, leave and license agreements with such employers allotting official accommodation; and f) Documents issued by Government departments of foreign jurisdictions and letter issued by For-eign Embassy or Mission in India.

The additional documents mentioned above shall be deemed to be OVDs under ‘simplified measure’ for the ‘low risk’ customers for the limited pur-pose of proof of address where customers are unable to produce any OVD for the same for the accounts opened under limited product coded detailed in e.cir.sl.no:444/2015-16 dt:15/07/2015.

NATIONAL VOTERS’ SERVICE PORTAL(NVSP) (http://electoralsearch.in/)

National Electoral Rolls Purification and Authenti-cation Programme ( NERPAP )-The main objective of bringing out a total error free and authenti-cated electoral roll. A one stop solution for all enrolment related

services, as under :Search name in the elector-al roll, Apply online registration as a new voter Correction of entries or change of address, Print voter’s information slip.

EPIC (Electors Photo Identity Card ) KYC/AML REVISED POLICY AND PROCEDURAL

GUIDELINES is detailed in e-cir. Sl.no: 1472/2015-16 dt:02/03/2016

Reserve Bank of India has specified Know Your Customer (KYC) standards to be followed by banks and measures to be taken in regard to Anti Money Laundering (AML) and Combating of Financing of Terrorism (CFT).

Obligations cast on banks under the Prevention of Money Laundering Act (PMLA), 2002

Recommendations made by the Financial Ac-tion Task Force (FATF) on AML standards and CFT

Paper issued on Customer Due Diligence (CDD) for banks by the Basel Committee on Banking Supervision

The Policy / procedural guidelines, as incorpo-rated in the Master Circular, are applicable to all domestic branches/offices of the Bank U/S Section 3 of the Prevention of Money Launder-ing Act, 2002 (PMLA) has defined the “offence of money laundering”

Non compliance with KYC/AML/CFT standards can lead to use of the technology channels of the Bank for Money Laundering/financing ter-rorism activities and thus expose the Bank to risks such as Operational Risk, Reputation Risk, Compliance Risk and Legal Risk etc.



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OBLIGATIONS UNDER PREVENTION OF MONEY LAUNDERING ACT, 2002

Section 12 of PMLA places the following obli-

gations on the Bank :- (i) maintaining a record of prescribed transactions (ii) furnishing information of prescribed transac-tions to the specified authority (iii) verifying and maintaining records of the iden-tity of its clients (in other words complying with the KYC requirements) and identifying the benefi-cial owners, if any, of such clients (iv) preserving records in respect of (i) and (ii) above for a period of five years from the date of transactions, and in respect of (iii) above for a pe-riod of five years after the cessation of relation-ship with the clients in respect of account opening forms and KYC documents.

The KYC/AML/CFT Policy of the Bank has the following key elements:

Customer Acceptance Policy

Customer Identification Procedures

Monitoring of Transactions and

Risk Management

Bank’s Customer Acceptance Policy (CAP) lays down the criteria for acceptance of customers.

Customer identification requires identifying the customer and verifying his/her identity by using reliable, independent source documents, data or information.

Thus, the first requirement of Customer Identi-fication Procedures (CIP) to be satisfied is that a prospective customer is actually who he/she claims to be. The second requirement of CIP is to ensure that sufficient information is ob-tained on the identity and the purpose of the intended nature of the banking relationship.

This would enable risk profiling of the custom-er and also to determine the expected or pre-dictable pattern of transactions.

Identification data, as under, would be re-quired to be obtained in respect of different classes of customers:

Action required on re-categorisation Accounts with “low risk” & where simplified procedure is followed, into Medium or High Risk

If a ‘low risk’ category customer for whom simplified procedure is applied, is recatego-rised as ‘moderate or ‘’high’ risk category at the time of review of the risk categorisation, then Branches/offices should obtain one of the six OVDs for proof of identity and proof of address immediately. In the event such a cus-tomer fails to submit such an OVD, Branches should initiate action for termination of the business relationship after giving due notice

REPORTING In terms of rules of Prevention of Money Launder-ing Act 2002, banks are obliged to file following reports to Financial Intelligence Unit-India (FIU-IND) i. Cash Transactions Reports (CTRs) ii. Counterfeit Currency Reports (CCRs) iii. Suspicious Transactions Reports (STRs) iv. Non Profit Organisations Transactions Report (NTRs) v. Cross Border Wire Transaction Reports

In terms of Rule 8 of PML Rules, while furnishing information to the Director, FIU IND, delay of each day in not reporting a transaction or delay of each day in rectifying a misrepresented trans-action beyond the time limit specified in the Rule shall constitute a separate violation and hence all reporting should be done as per the timelines prescribed As per provisions of PML Act.

Any deficiency in filing the mandatory reports

by reporting entities will attract minimum pe-nalty of Rs.10,000/- which may go to Rs.100000/- per instance per day.

FOR CUSTOMERS THAT ARE NATURAL PER-SONS:

Proof of identity and proof of address recent photograph

FOR CUSTOMERS THAT ARE LEGAL PERSONS:



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Legal status of the legal person/entity through proper and relevant documents

Verification that any person purporting to act on behalf of the legal person/entity is so authorized and identity of that person is established and verified

Understand the ownership and control structure of the customer and determine who are the natural persons who ultil-mately control the legal person (benefi-cial owners)

Wherever applicable, information on the nature of business activity, location, mode of payments, volume of turnover, social and financial status etc. will be collected for completing the profile of the cus-tomer.

Our Bank has been observing 1st August of every year as the "KYC compliance and Fraud Prevention Day" in order to create awareness about KYC compliance and fraud prevention, both among the staff and the public.

KYC COMPLIANCE FOR EXISTING ACCOUNTS All the accounts including those accounts opened before the implementation of the KYC guidelines are also to be made KYC compliant, as per RBI guidelines, by obtaining documents to prove the identity and address of the cus-tomer. Revised KYC guidelines are applicable to all new as well as existing accounts, transac-tions like remittances, new technology initia-tives like on-line banking, Debit cards, corres-pondent transactions, wire transfers, NEFT, RTGS, etc.

RBI has stipulated that banks should impose ‘partial freezing’ - i.e. restricting debit transac-tions on KYC non-compliant accounts in a phased manner.

While imposing ‘partial freezing’, banks are ad-vised to ensure that the option of ‘partial freezing’ is exercised only after giving due notice of three months initially to the customers to comply with KYC requirement, followed by a reminder, giving due notice for a further period of three months. Thereafter, banks may impose ‘partial freezing’ by allowing credits and disallowing debits.The cus-tomers would also have the option to close the accounts. If the accounts are still KYC non-compliant after six months of imposing initial ‘partial freezing’, banks may disallow credits also, rendering them

inoperative. Further, it would be open to the banks to close the accounts of such customers (e.cir:960/2014-15 dt: 12/11/2014) The position has since been reviewed and it has been decided to follow the course of action men-tioned below:- a) Only one letter need be sent as per enclosed format. The same will be deemed as a reminder to the letter(s) earlier sent to the KYC deficient ac-count holders as mentioned in para 2. b) No notices need be sent to CIFs where only TDR/STDR/PPF accounts are tagged. However, the operating functionaries should ensure to identify the customers as per KYC guidelines while making payment of these deposits before maturity or on due date. c) The notices will be generated by GITC, Belapur and will be placed in the report folders for dis-patch by the respective branches. (e.cir:1228/2014-15 dt:19/01/2015) Risk Categorisation: The revised list of classifica-tion of customers/groups of customers, under different category of risk, (e.cir.sl.no.471/2014 – 15 dt:31/07/2014) Accounts pertaining to Central/State Govern-ments, PSUs and JVs with Govt., Regulators, FIs, Statutory Bodies, salaried persons/pensioners of these organizations, “Small Accounts” and any product(s) that are specifically mandated to be opened under “Low Risk”, are to be assigned, ab-initio (from the beginning), Low Risk. Low Risk:- 1. Salaried Employees (whose salary is well de-fined) 2. Customer belonging to lower economic strata, accounts opened under financial inclusion 3. NGOs/NPOs promoted by UN or its agencies. 4. Government owned Companies/ Departments and (State/Central), PSUs, JVs with Govt., Regula-tors, FIs, Statutory bodies etc. 5. All customers not classified either as High/Medium Risk Categories 6. Individual Account holder with Credit/debit summations below ₹50 lacs per annum 7. Non Individual account holders with credit debit summations below ₹2 crores per annum.

Medium Risk :-

1. New customers (CIFs) opened under Low Risk while onboarding, during first 180 days of opening



SBLC DEOGHAR

the account, except those pertaining to Cen-tral/State Governments, PSUs and JVs with Govt., Regulators, FIs, Statutory Bodies, salaried per-sons/pensioners of these organizations, “Small Accounts” and any product(s) that are specifically mandated to be opened under Low Risk. 2. Non-Bank Financial Institution 3. Stock Brokers 4. Import/Export customers 5. Telemarketers 6. Pawn Shops 7. Auctioneers 8. Venture Capital Companies 9. All In-operative accounts 10. Individual Account holder with Credit/debit summations of ₹50.00 lacs to below ₹2.00 Crores per annum 11. Non Individual account holders with credit debit summations of ₹2.00 crores to below ₹10.00 Crores per annum High Risk:- 1. Politically Exposed person of foreign origin 2. Bullion Dealers/jewellers 3. Non Resident Customers (NRIs) 4. Trust Charities, NGOs & Organisations receiving donations from India & abroad 5. Non Face-to-Face Customers 6. Customers domiciled in/having transactions with High Risk Countries 7. Firms with Sleeping partners 8. Companies having close family shareholding 9. Multi-Level Marketing Companies 10. Accounts of Mules 11. Customers of dubious reputation 12. High Net worth Individuals - Individuals with total deposits of Rs.1.50 Crores or more 13. Pooled Accounts 14. Individual/entities involved in any fraud/forgery/anti national activity / terrorism / tax evasion/insider trading may be classified as High Risk 15. Account opened/operated by Power of Attor-ney Holders 16. Individual Account holder with Credit/debit summations of Rs.2.00 crores & more per annum 17. Non Individual account holders with credit debit summations of Rs.10.00 crores & more per annum 18. Customer accounts where STR has already been filed with FIU

Bank has set up AML/CFT Cell (earlier knows as KYC AML CELL), at Jaipur. It will be analyzing the alerts on transactions handled across the Bank with the help of AMLOCK software acquired from M/s 3i-Infotech for eventual generation of Suspi-cious Transactions Reports (STRs), it is required, to be submitted to the Financial Intelligence Unit India (FIU-IND) by the Principal Officer (KYC/AML).

PRM (Proactive Risk Manager) software has been implemented at the PRM Cell, Jaipur, to analyse transactions to strengthen fraud control system.

Presently PRM Cell is analysing alerts, based on ATM / POS / e‐Com transactions, generated on various business rules built in the software.

TRANSACTION THRESHOLDS FOR FILTERING TRANSACTIONS FOR GENERATION OF ALERTS

Bank has decided to fix following thresholds, subject to review from time to time, for filtering transactions and generating STR alerts.

Low Risk - Rs.50.00 lacs

Medium Risk - Rs.30.00 lacs High Risk - Rs.10.00 lacs

Monitoring of transactions for the purpose of ge-nerating Suspicious Transaction Reports (STR) is being done with the help of AMLOCK software,

Subjective STRs: Subjective STRs are those which are escalated, based on alerts or information re-ceived from Branches / staff / media reports / law enforcement agencies etc.

All transactions mentioned below have to be recorded in separate register.

Cash withdrawals and deposits for Rs 10 lacs and above.

Its equivalent in foreign Currency.

Where series of Cash transactions integrally connected to each other and within a month the aggregate value of cash transactions exceed Rs 10 Lakh.

CTR (Cash Transaction) Report regarding transac-tions of ₹ 10 lac and above in an account are gen-erated by CDC Belapur itself and reported to FIU-IND on monthly basis.

An AML software called AMLOCK is being used by the Bank for triggering alerts, the Branches should also escalate Suspicious Transaction Reports



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(STRs) in respect of suspicious transactions which come to their notice.STR (Suspicious Transaction) Report - Branches are required to record and re-port all transaction of suspicious nature to LHO through their controller as it has to be reported by Corporate Centre to the Director, FIU-IND.

Counterfeit Currency Reports (CCRs): All instances of counterfeit currency and forgery of valuable security and documents are to be submitted to FIU-IND through the Principal Officer.

SUSPICIUS TRANSACTIONS : SCRUTINY OF UN-USUAL TRANSACTIONS :

Particular of Transactions Scrutiny By

Cash Transac-tions upto Rs.50,000/=

Transfer trac-tions upto Rs.1,00,000/=

Senior Asstt. For transactions han-dled by him

Cash transac-tions upto Rs.1,00,000/=

Transfer transaction upto Rs.4,00,000/=

Senior Special Assistant for transactions han-dled by him.

Cash transac-tions upto Rs.2,00,000/=

Transfer transactions upto Rs.5,00,000/=

Manager of Divi-sion/Ser. Manag-er /B.M for all such transactions not scrutinized by any of the above.

In terms of the PMLA records of Cash transac-tions of Rs. 10 lacs and suspicious transactions are required to be maintained for a period of 10 years.

For customers of PEP Politically Exposed persons category branches should obtain senior manage-ment approval to establish and continue the busi-ness relationship and subject the account of the customer due diligence.

The above norms should also be applied to the

accounts of the family members and close rela-tives of PEPs

Branches should not allow opening and/or holding of an account on behalf of a client/s by profes-sional intermediaries, like Lawyers and Chartered Accountants, etc., who are unable to disclose true

identity of the owner of the account/funds due to any professional obligation of customer confiden-tiality For proprietary concerns accounts, the branches should obtain any two of the below documents in the name of proprietary concern:- Proof of the name, address and activity of the concern like registration certificate (in the case of a registered concern), certificate/license issued by the Municipal authorities under Shop & Estab-lishment Act, sales and income tax returns, CST/VAT certificate, certificate/registration doc-ument issued by Sales Tax/Service Tax/Professional Tax authorities, License issued by the Registering authority like Certificate of Prac-tice issued by Institute of Chartered Accountants of India, Institute of Cost Accountants of India, Institute of Company Secretaries of India, Indian Medical Council, Food Drug and Control Authori-ties etc. of proprietary concern, registra-tion/licensing document issued in the name of proprietary concern by the Central Government or State Government Authority/Department. Im-porter Exporter Code issued to the proprietary concern by the office of DGFT as an identity doc-ument for opening of bank account. Branches must report counterfeit Currency notes by way of Counterfeit Currency Reports to the Principal Of-ficer (KYC/AML) through the Circle Dy. General Manager & CCFO and Money Laundering Report-ing Officer and Suspicious Transactions by way of Suspicious Transaction Reports (STRs) to the Prin-cipal Officer (KYC/AML) through the Circle Dy. General Manager & CCFO and Money Laundering Reporting Officer. CUSTOMER IDENTIFICATION REQUIREMENTS INDICATIVE GUIDELINES (e.cir.sl.no.472/2014 – 15 dt: 31/07/2014)

RBI has issued instructions simplifying the re-quirement of submission of ‘proof of address’ as follows: a) Henceforth, customers may submit only one documentary proof of address (either current or permanent) while opening a bank account or while undergoing periodic updation. In case the address mentioned as per ‘proof of address’ un-dergoes a change, fresh proof of address may be submitted to the branch within a period of six months. b) In case the proof of address furnished by the customer is not the local address or address



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where the customer is currently residing, the bank may take a declaration of the local address on which all correspondence will be made by the bank with the customer. No proof is required to be submitted for such address for correspon-dence/local address. This address may be verified by the bank through ‘positive confirmation’ such as acknowledgment of receipt of (i) letter, cheque books, ATM cards; (ii) telephonic conversation; (iii) visits; etc. In the event of change in this ad-dress due to relocation or any other reason, cus-tomers may intimate the new address for corre-spondence to the bank within two weeks of such a change. RBI has also advised that henceforth, only six documents viz, Passport, PAN Card, Driving Li-cence, Voter Identity Card, Aadhaar Letter and NREGA Card, which have been notified as ‘offi-cially valid’ documents, can be accepted as proof of identity and proof of address. The discretion given to the Banks to accept documents other than the RBI specified documents has been with-drawn. There will be no separate list of docu-ments which can be accepted as proof of identity and proof of address. In case of Low risk customers, RBI permits apply-ing simplified measures taking into consideration the type of customer, business relationship, na-ture and value of transactions based on overall money laundering and terrorist financing risks. Where simplified measures are applied, the fol-lowing documents (any one) are deemed to be the ‘officially valid’ documents. In our Bank, sim-plified measures will be applicable, for the pre-sent, only to “Small Accounts” opened under product code 1011-1601 until further instructions are issued in this regard. i) Identity card with applicant’s photograph issued by Central/State Govt. Depart-ments/Statutory/Regulatory Authorities, Public Sector Undertakings, Scheduled Commercial Banks and Public Financial Institutions. ii) Letter issued by gazetted officer, with a duly attested photograph of the person.

Customer Identification Procedure (CIP) (e Cir. SL127/2016-17 dated 28.04.16)

Introduction should not be sought while open-ing accounts.

The customers should not be required to fur-nish an additional Officially Valid Document

(OVD), if the OVD submitted by the customer for KYC contains both proof of identity and proof of address.

The customers should not be required to fur-nish separate proof of address for permanent and current addresses, if these are different. In case the proof of address furnished by the cus-tomer is the address where the customer is

currently residing, a declaration shall be taken from the customer about her/his lo-cal address on which all correspondence

will be made by the Bank.

TRUST/NOMINEE OR FIDUCIARY ACCOUNTS While opening a Trust account, branches should take reasonable precautions to verify the identity of the trustees and the settlers of trust (including any person settling assets into the trust), guaran-tors, protectors, beneficiaries and signatories. In the case of a 'foundation', steps should be taken to verify the founder managers/directors and the beneficiaries.

ACCOUNTS OF COMPANIES AND FIRMS Details of registration of companies should be verified through company master data from Min-istry of Corporate Affairs, Govt. of India website www.mca.gov.in (MCA – 21) wherever available, in addition to verification of Copies of KYC docu-ments from the originals thereof branches should examine the control structure of the entity, de-termine the source of funds and identify the per-sons who have a controlling interest and who comprise the management with a view to guard against entering into relationship with business entities being used by individuals as a 'front' for maintaining accounts with banks.

CLIENT ACCOUNTS OPENED BY PROFESSIONAL INTERMEDIARIES Branches may exercise enhanced due diligence at the time of opening accounts by intermediaries such as guardians of estates, executors, adminis-trators, assignees, receivers etc. e.g : while open-ing the account of an administrator of the state, it would be necessary to examine the Letter of Ad-ministration (Authority) as it would give a clear picture of the assets of the estate.



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SELF HELP GROUPS: In order to address the difficulties faced by Self Help Groups (SHGs) in complying with KYC norms while opening savings bank accounts and credit linking of their accounts, it has been decided by RBI to simplify certain norms for SHGs. Accordingly, KYC verification of all the members of SHG need not be done while opening the savings bank account of the SHG; KYC verification of all the office bearers would suffice. As regards KYC verification at the time of credit linking of SHGs, ( since KYC would have al-ready been verified while opening the savings bank account and the account continues to be in operation and is to be used for credit linkage) no separate KYC verification of the members or office bearers is necessary.

ACCOUNTS OF POLITICALLY EXPOSED PERSONS Politically exposed persons are individuals who are or have been entrusted with prominent public function in a foreign country, e.g. Heads of States or of Governments, senior politicians, senior gov-ernment/judicial/military officers, senior execu-tives of state owned corporations, important po-litical party officials, etc. Branches should gather sufficient information on any person/customer of this category intending to establish a relationship and check all the information available on the person in the public domain. Branches should ve-rify the identity of the person and seek informa-tion about the sources of funds before accepting the PEP as a customer. Branches should open such accounts with the approval of controllers in respect of branches / BPR outfits headed by offi-cials of Junior Management/Middle Management. In respect of branches / BPR outfits headed by officers of Senior Management and above, such approval should be accorded by the branch/operating unit head in person. Such accounts should be subjected to enhanced monitoring on an ongoing basis. The above norms should also be applied to the accounts of the family members and close relatives of PEPs.

ACCOUNTS OF NONFACE TO FACE CUSTOMERS

With the introduction of telephone and electronic banking, increasingly accounts are being opened by banks for customers without the need for the

customer to visit the bank branch. In the case of non face to face customers, apart from applying the usual customer identification procedures, there must be specific and adequate procedures to mitigate the higher risk involved. Certification of all the documents presented should be insisted upon and, if necessary, additional documents may be called for. In such cases, banks may also re-quire the first payment to be effected through the customer’s accounts with another bank which, in turn, adheres to similar KYC standards. In the case of cross border customers, there is the additional difficulty of matching the customer with the do-cumentation and the bank may have to rely on third party certification/introduction. In such cas-es, it must be ensured that the third party is a re-gulated and supervised entity and has adequate KYC systems in place as responsibility for correct-ness of identity/residence proof lies with the branch monitoring such account or handling the transaction. Non face to face customers are those with whom the Branch has no direct interaction at the time of opening the account e.g. NRI custom-ers who opened the account without visiting the branch. Branches should insist on certification of documents for photo ID and proof of residence by either of the following: (i) Banker (ii) Notary Public (iii) Indian Embassy (iv) A person known to Bank whose signatures are verifiable from Bank’s Records

NO FRILLS ACCOUNTS (Product withdrawn vide e-cir.no:776/2012-13 dt:10/10/2013)

In case a customer visits the Branch with an in-tention to open a No-frills Account he/she may be suitably appraised with the details of Basic Savings Bank Deposit Account and Small Ac-count and his/her account should be opened under one of the product codes mentioned (based on the KYC documents available): i. Ba-sic Savings Bank Deposit Account - 1011 1701. ii. Small Account - 1011 1601

ACCOUNTS WITH INTRODUCTION:

With a view to prevent denial of banking ser-vices and ensuring financial inclusion of per-sons, especially those belonging to low income group both in urban and rural areas, who are not able to produce the specified documents



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required by the Bank to satisfy about their identity and address, branches may open ac-counts of such persons (natural persons only) with relaxed KYC standards as per details given below.

Persons desirous of opening such accounts can keep aggregate balances not exceeding ₹ 50,000/- (Rupees fifty thousand only) in all their accounts taken together and the total credit, again in all accounts taken together, should not exceed ₹ 1,00,000/- (Rupees one lac only) in a year. If at any point, the balances in all his/her accounts with the Bank (taken to-gether) exceeds ₹ 50,000/- (Rupees fifty thou-sand only) or total credit in all accounts taken together exceeds ₹ 1,00,000/- (Rupees one lac only) in a year, no further transactions will be permitted until full KYC procedure is com-pleted. Branches should notify the customers when the balances reach ₹ 40,000/- (Rupees forty thousand only) or total credit in a year reaches ₹ 80,000/- (Rupees eighty thousand only) so that appropriate documents, for com-plying with full KYC requirements are submit-ted well in time to avoid blocking of transac-tions in the account.

Such Deposit accounts may be opened by branches after complying with relaxed KYC re-quirements by accepting documents as under :- a) introduction from another account holder who has been subjected to full KYC procedure. The introducer’s account with the Bank should be at least six months old and should show sa-tisfactory transactions / have no unsatisfactory / irregular features apparent. Photograph of the customer who proposes to open the ac-count and also his address needs to be certi-fied by the introducer. or b) For prospective customers at villages, Kisan Bahi/Kisan Pass-book, issued by the Revenue authorities, and containing photograph/address of the land holder can be accepted as valid document. or c) Any other document as to the identity and address of customer to the satisfaction of the Bank.

While opening accounts as described above, the customer should be made aware that if at any point of time, the balances in their ac-

counts with the Bank (taken together) and the total credit (summation) exceeds the above threshold, no further transactions will be per-mitted until full KYC procedures are com-pleted.

SMALL ACCOUNT:

'small account' means a savings account in a banking company where:- (i) the aggregate of all credits in a financial year does not exceed rupees one lakh; (ii) the aggregate of all with-drawals and transfers in a month does not ex-ceed rupees ten thousand; and (iii) the balance at any point of time does not exceed rupees fifty thousand.

INDIVIDUAL NRE ACCOUNTS:

Accounts to be opened on the basis of the fol-lowing documents: Passport and Residence Vi-sa Copies, duly attested by (i) Banker (ii) Notary Public (iii) Indian Embassy (iv) A person known to the Bank. i.e Other account holders (v) Self

ACCOUNTS OF MINORS:

Often a family member or guardian would open an account for a minor. If minor is less than 10 years of age, ID proof of the person who will operate the account is to be obtained. In cases where minor can operate the account independently, KYC procedure for identifica-tion/address verification as in the case of any other individual would apply.

Foreign students coming to India would be considered as “non-resident” and a resident account cannot be opened for them.”(e-cir:1176/2013-14 dt:28/01/2014)

ACCOUNTS OF INDIVIDUALS:

The customer identification will be on the basis of documents provided by the customer as (a) proof of identity and (b) proof of address. Prescribed application form along with Photographs of the customer is to be invariably obtained in all cases.

Proof of identity and address required at the time of opening of the account of an individual:



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As per Rule 9 of the PML Amendment Rules 2013, any one document from the “Officially Valid Documents” is only allowed. They are (i) Passport (ii) Driving License (iii) Permanent Account Number (PAN) Card (au-thenticity to be invariably cross checked with CBDT web site before opening the account) (iv) Voter’s Identity Card issued by Election Com-mission of India, (v) Job Card issued by NREGA duly signed by an officer of the State Government (vi) The letter issued by Unique Identification Au-thority of India (UIDAI) containing details of name, address and Aadhaar Number It is implied that proof of address also follows from the above documents only.

Only the documents mentioned above would be accepted for opening of accounts of individuals. Bank does not have the discretion to accept any other document.

Document accepted for proof of identity should be verified through internet using website of pub-lic/concerned authority wherever such informa-tion is available online.

OTHER THAN INDIVIDUAL ACCOUNTS:

Besides prescribed application forms and photo-graphs of persons who will be operating the ac-count, following documents are also to be ob-tained:

COMPANIES:

Memorandum and Articles of Association Certifi-cate of Incorporation, Certificate of commence-ment of business (wherever applicable), A copy of the resolution of the Board of Directors for open-ing of the Account, and Identification of those who have authority to operate the account

SOCIETIES/ASSOCIATIONS/CLUBS :

Resolution for opening of the account a copy of Byelaws Copy of Certificate of Registration in the case of Registered Clubs Societies and Associa-tions. Proof of Identification of the office bearers who are opening and operating the account.

HINDU UNDIVIDED FAMILY (HUF):

HUF comes into being because of a particular con-cept under Hindu Law whereby all the members of the family reside together jointly, carry on a business activity jointly and hold the property jointly and therefore, it is termed as Hindu Undi-vided Family. Declaration from the Karta. Proof of Identification of Karta. Prescribed Joint Hindu Family Letter signed by all the adult coparceners.

TRUST/NOMINEE OR FIDUCIARY ACCOUNTS There exists the possibility that trust/nominee or fiduciary accounts can be used to circumvent the customer identification procedures. Bank should determine whether the customer is acting on be-half of another person as trustee/nominee or any other intermediary. If so, bank should insist on receipt of satisfactory evidence of the identity of the intermediaries and of the persons on whose behalf they are acting, as also obtain details of the nature of the trust or other arrangements in place. While opening an account for a trust, bank should take reasonable precautions to verify the identity of the trustees and the settlers of trust (including any person settling assets into the trust), grantors, protectors, beneficiaries and sig-natories. Beneficiaries should be identified when they are defined. In the case of a ‘foundation’, steps should be taken to verify the founder man-agers/directors and the beneficiaries, if defined.

ACCOUNTS OF COMPANIES AND FIRMS: Banks need to be vigilant against business entities being used by individuals as a ‘front’ for maintaining accounts with banks. Banks should examine the control structure of the entity, determine the source of funds and identify the natural persons who have a controlling interest and who comprise the management. These requirements may be moderated according to the risk perception e.g. in the case of a company listed in a stock exchange it will not be necessary to identify all the beneficial owners/shareholders. Details of registration of companies should be verified through company master data from Ministry of Corporate Affairs, Govt. of India website www.mca.gov.in (MCA – 21) wherever available, in addition to verification of copies of KYC documents from the originals thereof.

PROPRIETARY CONCERNS



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While obtaining prescribed documents for open-ing of accounts of proprietary concerns, the bank should take reasonable measures to identify the beneficial owner (s) and verify his/her/their iden-tity in a manner so that it is satisfied that it knows who the beneficial owner(s) is/are. Accordingly, apart from above mentioned customer identifica-tion procedure, branches should call for and verify the following documents before opening of ac-counts in the name of proprietary concern:- i) Proof of the name, address and activity of the concern like registration certificate (in the case of a registered concern), ii) certificate/license issued by the Municipal authorities under Shop & Estab-lishment Act, iii) sales and income tax returns, iv) CST/VAT certificate, certificate/registration doc-ument issued by Sales Tax/Service Tax/Professional Tax authorities, v) License issued by the Registering authority like Certificate of Practice issued by Institute of Chartered Accoun-tants of India, Institute of Cost Accountants of India, Institute of Company Secretaries of India, Indian Medical Council, Food Drug and Control Authorities, vi) registration/licencing documents issued in the name of the proprietary concern by the Central Government or the State Government Authority/Department. vii) Banks may also accept IEC (Importer Exporter Code) issued to the pro-prietary concern by the office of DGFT as an iden-tity document for opening of the Bank account.

Any two of the above documents would suffice. These documents should be in the name of the proprietary concern.

These guidelines will apply to all new customers, as well as accounts of existing customers. The KYC documents as per these guidelines for the existing accounts should be obtained and the KYC particu-lars are updated.

NRI customers are classified as “High Risk Cus-tomer” and therefore it is necessary to carry out KYC re-check for this segment at the periodicity of every two years, as per the Regulatory require-ment. Presently, NRI customers can submit fresh documents for e-KYC as per following: a. Custom-ers visiting the branch in person: KYC documents viz- Proofs of Identity and Overseas address proof etc have to be submitted across the counters.

b. Customers not visiting the branch: The KYC documents have to be sent to the home branch through post or courier from overseas. Additional-ly, third party attestation of all the requisite KYC documents is also required. Each of the single / joint NRI account holder has to submit following additional document in addition to the proofs of identity and overseas address as part of KYC doc-uments: The NRI should be a resident of any of the listed 30 (thirty) countries only (e.cir.sl.no:1447/2014-15 dt:16/03/2015)

Key features of KYC due diligence for NRIs are mentioned below:

a) The KYC due diligence will entail obtention of “Proof of Status”, “Proof of Identity”, “Proof of Permanent Address (either of Overseas or In-dian)” and “Current Address document (overseas only)”. The customer has the liberty to indicate one of these addresses as the address for corres-pondence. For customers not visiting our branches i.e. nonface to face customers, an addi-tional proof will be needed.

b) In case of NRIs/PIOs/OCIs, they will mandatorily give copy of their passport for “Proof of Identity”, and the same document can also be accepted for “Proof of Permanent Address” (provided there is no change in permanent address). In case they want to give permanent address other than the one appearing in Passport, then any of the Offi-cially Valid Document (OVD) carrying the address should be obtained.

(e.cir.sl.no:103/2015-16 dt:22/04/2015 The e-KYC auto population functionality has since

been rolled out in the Branch as well as to our Business Correspondent (BC) Kiosk Banking chan-nel across the country.

A periodic report of all KYC non-compliant NRI CIFs for every branch and a cumulative report for controllers, on the monthly basis, as described below: I. Report for branches: a. Name of this report will be as, “KYCNRI <num-ber of report> - NRI KYC Branch wise Report.pdf’ b. This report has to be downloaded by the branch from https://sbedwp.statebanktimes.in/SBIEDW/, by entering valid credentials of the concerned branch official (HRMS credential with appropriate privi-leges) c. Report will be uploaded by 17th of every



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month for the ‘KYC non-compliant NRI CIFs’ as on the last day of previous month. II. Report for controllers: a. Name of this report will be as, “NON KYC NRI DATA for Controllers as on <month name>” b. Report will be uploaded by 17th of every month for the ‘KYC non-compliant NRI CIFs’ as on the last day of previous month. c. This report can be downloaded from http://10.0.10.22/pr/newindexh.jsp

“Money Mules” can be used to launder the proceeds of fraud schemes (e.g. phishing and identity theft) by criminals who gain illegal access to deposit accounts by recruiting third parties to act as “money mules.” In some cases these third parties may be innocent while in others they may be having complicity with the criminals.

In a money mule transaction, an individual with a bank account is recruited to receive cheque de-posits or wire transfers and then transfer these funds to accounts held on behalf of another per-son or to other individuals, minus a certain commission payment. Money mules may be re-cruited by a variety of methods, including spam emails, advertisements on genuine recruitment web sites, social networking sites, instant mes-saging and advertisements in newspapers. When caught, these money mules often have their bank accounts suspended, causing inconvenience and potential financial loss, apart from facing likely legal action for being part of a fraud. Many a times the address and contact details of such mules are found to be fake or not up to date, making it difficult for enforcement agencies to locate the account holder.

The operations of such mule accounts can be minimized by following the guidelines on open-ing of accounts and monitoring of transactions. It is, therefore, advised to strictly adhere to the guidelines on KYC/AML/CFT issued from time to time and to those relating to periodical updation of customer identification data after the account is opened and also to monitoring of transactions in order to protect the bank and the bank’s cus-tomers from misuse by such fraudsters. The of-ficer-in-charge vested with the authority to open the account, should ensure compliance with the KYC guidelines. The employee/officer, who has interviewed the customer should subscribe his

signature, in the space provided in the account opening form, for having interviewed the pros-pective customer and should ensure that all as-pects of KYC guidelines are complied with.

BUSINESS CORRESPONDENTS (BCs)/BUSINESS FACILITATORS (BFs) Bank has established alter-nate channels for personal banking and rural banking and has appointed above functionaries to facilitate assigned activities. These functiona-ries will have inter alia, role in KYC/AML/CFT measures implementation which has been spelt out here under :- 1) Business Correspondents (BCs) Will facilitate filling up of account opening forms, procurement of KYC documents, photo-graph etc. and put up to the home Branch 2) Business Facilitators (BFs) where the account will reside. Necessary verification will be done at Home branch. It is pertinent to mention that while functionaries of alternate channels will fa-cilitate completion of KYC formalities in respect of accounts opened through them, primary re-sponsibility of ensuring KYC compliance in re-spect of all accounts maintained with it including review of KYC, risk categorization, monitoring of transactions etc. will rest with the parent branch.

CUSTOMER PROFILE:

For the purpose of monitoring individual trans-actions in accounts, “Customer Profile” of indi-vidual account holders should be compiled in the account opening forms, covering the fol-lowing information:- (i) Occupation (ii) Source of funds (iii) Monthly Income (iv) Annual turn-over (in the case of business) (v) Date of Birth (vi) Educational qualification (vii) Details of ex-isting credit facilities, if any (viii) Assets (ap-proximate value). - Customer profiles to be prepared for all accounts. Customer profiles have to be reviewed whenever the branch has doubt about the authenticity/veracity or the adequacy of the previously obtained customer identification data. For opening accounts by transfer from other branches the customer profile should be updated. While transferring accounts from inoperative accounts and dor-mant accounts to live ledger, it should be en-sured that KYC guidelines are complied with.



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A built in system level restrictions has been made to prevent issue of demand drafts, bank-ers cheques, NEFT/RTGS for value ₹50,000/- and above against cash

Using of internal accounts as a parking account for own customers’/ walk-in-customers’ cash transactions which involved purchase of DDs, sale of gold coin etc. for amounts above ₹50,000/- is prohibited.

RBI guidelines on KYC norms stipulate all ac-counts in the Bank to be KYC compliant (sup-ported by documents which establish proof of identity and proof of current address and a re-cent photograph of the customer) irrespective of the duration a customer has already been banking with the Bank.

The Customer Identification Procedures are to be carried out at the following stages:- (e-cir. Sl.no: 840/2014-15 dt:14/10/2014)

while establishing a banking relationship; When the bank feels it is necessary to obtain

additional information from the existing custom-ers based on the conduct or behaviour of the ac-count.

Customer identification data (including photo-graph/s) should be periodically updated after the account is opened.

Full KYC exercise will be required to be done at least every two years for high risk individuals and entities.

Full KYC exercise will be required to be done at least every ten years for low risk and at least every eight years for medium risk individuals and entities.

Positive confirmation (obtaining KYC related updates through email /letter/telephonic conver-sation /forms/interviews/visits, etc.), will be re-quired to be completed at least every two years for medium risk and at least every three years for low risk individuals. Such updation should be done irrespective of whether the account has been transferred from one branch to another, from the date of opening of the account/ last verification of KYC and branches should maintain records of transactions as prescribed.

Customer Identification will also be carried out in respect of non account holders approaching bank

for high value transactions as well as any person or entity connected with a financial transaction which can pose significant reputational or other risks to the Bank.

Letters of Thanks in all instances of opening of new accounts to be sent by registered post at the recorded addresses to all customers with dual purpose of thanking them for opening the ac-count with the Bank and for verification of genu-ineness of address furnished by the account holder. Undelivered envelopes in this regard would be required to be followed-up closely at branch / CPC level and proper noting is to be made in the formalities register at the branches. Copies of letters are to be kept on record.

When signatories change, care should be taken to ensure that the identity of any new signatories has been verified.

A number of cheque books are being returned as undelivered due to the recipient’s address being incorrect. The customer, while applying for a che-que book has the option of requesting the deli-very of the cheque book at the address recorded in CBS or on any other address of his choice. The cheque book requisition slip provided in the che-que book gives the account holder two options for entering the address for dispatch –

Address alongside – which is the address recorded in the CBS Address given overleaf – which the account hold-er needs to write overleaf in case he wishes to take the delivery of the cheque book at any other address of his choice.

KYC once done by one branch of the bank should be valid for transfer of the account within the bank as long as full KYC had been done for the concerned account. The customer should be al-lowed to transfer his account from one branch to another branch without restrictions. The existing accounts at a branch may be transferred to the transferee branch without insisting on fresh proof of address and on the basis of a self-declaration from the account holder about his/her current address. Branches shall intimate the customers that in the event of change in address due to relo-cation or any other reason, they should intimate the new address to the bank within two weeks of such a change. While opening new accounts and while periodically updating KYC data as required in terms of RBI instructions in this regard an un-



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dertaking to this effect should be obtained by branches.

Transfer of Non –KYC Compliant Accounts-In accounts where KYC is incomplete,

the customer should be allowed to submit the necessary KYC documents at the transfe-ror/transferee branch as per his convenience. If documents are submitted at the transferee branch, it may verify and send the scanned copies of these documents, through its official email, to the transferor branch to enable it to transfer the account as requested by the customer.

TRANSFER OF INOPERATIVE ACCOUNTS :

Inoperative Accounts should be made operative before its transfer to the transferee branch. Therefore, transferee branch should ensure that account is made operative by customer before submitting tha application for transfer of account The Mental Health Act, 1987 provides for a law

relating to the treatment and care of mentally ill persons and to make better provision with respect to their property and affairs. According to the said Act, “mentally ill person” means a person who is in need of treatment by reason of any mental disorder other than mental re-tardation. Sections 53 and 54 of this Act pro-vide for the appointment of guardians for mentally ill persons and in certain cases, man-agers in respect of their property. The pre-scribed appointing authorities are the district courts and collectors of districts under the Mental Health Act, 1987.

The National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999 provides for a law relating to certain specified disabilities. Clause (j) of Section 2 of that Act defines a “person with disability” to mean a person suf-fering from any of the conditions relating to autism, cerebral palsy, mental retardation or a combination of any two or more of such condi-tions and includes a person suffering from se-vere multiple disabilities. This Act empowers a Local Level Committee to appoint a guardian, to a person with disabilities, who shall have the care of the person and property of the dis-abled person.

Banks should take note of the legal position stated above and may rely on and be guided by the orders/certificates issued by the compe-tent authority, under the respective Acts, ap-pointing guardians/managers for the purposes of opening/operating bank accounts. In case of doubt, care may be taken to obtain proper le-gal advice.

“In terms of Section 2(v) of FEMA 1999, definition

of a person resident in India does not include a person who has come to or stays in India for any purpose which would indicate his stay for a defi-nite period. Accordingly, foreign students coming to India would be considered as “non-resident” and a resident account cannot be opened for them.” (e.cir.sl.no1176/2013 – 14 dt:28/01/2014))

NRI SERVICES: INTRODUCTION OF ONLINE AC-COUNT APPLICATION FACILITY FOR OPENING NRE/NRO SAVINGS BANK ACCOUNT: The appli-cant has to post/courier duly attested account opening form along with attested copies of KYC documents to the respective LCPC and it should reach LCPC in the time period of 45 days from the date of online submission of information, failing which the application will be discarded. The cus-tomer will have the option of choosing the branch for opening his / her account and based on this choice he/she will be advised to courier docu-ments to the mapped LCPC. The KYC verification will be done by the LCPC as mentioned in Annex-ure ‘B’. After due diligence, the LCPC will open the account in CBS and carry out further processing as per extant guidelines. In case the documents are not in order then the same will be returned to the branch chosen by the NRI for opening of his ac-count and then it will be followed up by the branch for completion of documents. (e.cir.sl.no1214/2013 – 14 dt:06/02/2014)

RBI guidelines on KYC/AML/CFT measures provide that letter issued by the Unique Identification Au-thority of India (UIDAI) containing details of name, address and Aadhaar number can be accepted as an ‘Officially Valid Document’. Physical Aadhaar card/letter issued by UIDAI containing details of name, address and Aadhaar number received through post would continue to be accepted as an ‘Officially Valid Document’. (e.cir.sl.no.1380/2013 – 14 dt:21/03/2014)



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In order to reduce the risk of identity fraud, document forgery and have paperless KYC verifi-cation, UIDAI has launched its e-KYC service. RBI guidelines permit acceptance of e-KYC service as a valid process for KYC verification under Preven-tion of Money Laundering (Maintenance of Re-cords) Rules, 2005. Further, the information con-taining demographic details and photographs made available from UIDAI as a result of e-KYC process (“which is in an electronic form and ac-cessible so as to be usable for a subsequent refer-ence”) is treated as an ‘Officially Valid Document’ under PML Rules. (e.cir.sl.no.1381/2013 – 14 dt:21/03/2014)

The Bank has implemented use of UIDAI’s e-KYC service by executing an KYC User Agency (KUA) agreement with the UIDAI.

The Bank has waived minimum balance require-ment for all types of Savings Bank Accounts. Un-der P-segment, SB Account can be opened with Zero initial deposit subject to the strict compli-ance with all KYC requirements stipulated by the Bank. The customer has the option to fund his/her newly opened account on the day of account opening or subsequently as per his convenience through Cash, Transfer from own account, NEFT, RTGS, INB or by Cheque. Third party cheques/ in-struments endorsed in favour of the account holder should not be accepted for credit of cus-tomer’s Savings Bank account. (e.cir.sl.no.10/2014 – 154 dt:04/04/2014)

Aadhaar based e-KYC Services has been made live

in the Bank. The printed e-KYC certificate can be used for CIF/account opening in CBS subject to satisfying other account opening requirements. The certificate generated through e-KYC applica-tion is solely meant for e-KYC purpose and for use within our Bank only. (e.cir.sl.no.85/2014 – 154 dt:25/04/2014)

The Development Credit Bank Ltd. has changed its name as DCB Bank Ltd. w.e.f. 24th October, 2013

RBI has advised that the extant KYC guidelines do not envisage placing restrictions on acceptance of credits nor placing hold on the balances in the KYC deficient accounts. However, RBI has advised that the bank may close the KYC deficient accounts after giving due notice to such customers.

CMP Centre, Mumbai is now authorised to print/issue the following types of instruments with facsimile signature up to a limit of ₹ 10 lacs per instrument Inter Office Instruments (IOI) and Income Tax

Refund Orders (ITRO) with facsimile signature of Bank officials

Multi City Cheques and Dividend Warrants with facsimile signatures of authorised signa-tories of Corporate clients.

Instruments above ₹10 lacs will continue to be signed manually by Bank Officials/ authorised sig-natories of corporate clients.

Retiring SBI employees are not required to open a separate SB/CA for the purpose of getting pen-sion.

Pension can be credited to the existing staff SB/CA of the pensioner. On death of the staff pensioner, the family pensioner need not open a new SB/CA for the purpose of getting family pen-sion. Family pension can be credited to the existing joint SB/CA of staff pensioner with ‘E or S’ facility.

In view of the increase in number of high value frauds, the Top Management have directed that operating functionaries, while scrtinizing should verify and cross check few major items of Profit & Loss and Balance Sheet with the regulatory re-turns such as sales tax, excise duty, VAT, etc. to ensure that prima facie the figures are in order. (e.cir.sl.no.262/2014 – 15 dt:11/06/2014)

The name of “Bharatiya Mahila Bank Limited” has been included in the Second Schedule to the Re-serve Bank of India Act, 1934

PIO: Person of Indian Origin OCI: Overseas Citizen of India

DEAF: Depositor Education and Awareness Fund:

“RBI DEAF Account NO: 161001006009”. The amount to the credit of any account in India with any bank which has not been operated upon for a period of ten years or any deposit or any amount remaining unclaimed for more than ten years shall be credited to the Fund, within a pe-riod of three months from the expiry of the said period of ten years. which include:-

savings bank deposit accounts; fixed or term deposit accounts;



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cumulative/recurring deposit accounts; current deposit accounts; other deposit accounts in any form or

with any name; cash credit accounts; loan accounts after due appropriation by

the banks; margin money against issue of Letter of

Credit/Guarantee etc., or any security de-posit;

outstanding telegraphic transfers, mail transfers, demand drafts, pay orders, bankers cheques, sundry deposit ac-counts, Vostro accounts, inter-bank clear-ing adjustments, unadjusted National Electronic Funds Transfer (NEFT) credit balances and other such transitory ac-counts, un-reconciled credit balances on account of Automated Teller Machine (ATM) transactions, etc.;

undrawn balance amounts remaining in any prepaid card issued by banks but not amounts outstanding against travellers cheques or other similar instruments, which have no maturity period;

rupee proceeds of foreign currency de-posits held by banks after conversion of foreign currency to rupees in accordance with extant foreign exchange regulations; and such other amounts as may be speci-fied by the Reserve Bank from time to time.

Any amount payable in foreign currency under an instrument or a transaction,

Reserve Bank of India defined a non-cooperative borrower as ‘one who does not provide necessary information required by a lender to assess its financial health even after 2 reminders; or denies access to securities etc. as per terms of sanction or does not comply with other terms of loan agreements within stipulated period; or is hos-tile/indifferent/in denial mode to negotiate with the bank on repayment issues; or plays for time by giving false impression that some

solution is on horizon; or resorts to vexatious tactics such as litigation to thwart timely reso-lution of the interest of the lender/s.

The borrowers have to be given 30 days’ no-tice to clarify their stand before their names are reported as non-cooperative borrowers.

Our Bank is among the few banks authorized by the Income Tax Department to accept de-posits under Capital Gains Accounts Scheme 1988 (CGAS) representing capital gains or sale proceeds of long term capital assets. (Only public sector banks can offer this deposit scheme). This special account, named ‘SBI Cap Gains Plus’ in our Bank, can be opened as a Savings Bank account (Account A) or a Fixed Deposit account (Account B) (TDR or STDR) af-ter opening Savings Bank account. (e.cir.sl.no.369/2014 – 15 dt:10/07/2014)

KYC Requirements Pehla Kadam: Date of Birth proof of the Minor

+ KYC of the Parent Pehli Udaan:Date of Birth proof of the Minor +

KYC of the Parent Pehla Kadam is a Savings Bank account for

minor of any age operated jointly with his/her Parent/Guardian or singly by Parent/Guardian, while Pehli Udaan is a singly operated Savings Bank Account for a Minor aged 10 years and above and who can sign uniformly.

These accounts offer a complete bouquet of banking products to the children.

Basic Saving Bank Deposit (BSBD is a full KYC & can be opened with zero balance account, whereas Small account or Tiny account are opened with liberalized KYC.

It has been informed by Export Credit Guaran-tee Corporation that the name of their Com-pany has been changed from “Export Credit Guarantee Corporation of India Ltd” to “ECGC Ltd” with effect from 8th August, 2014.

Unique Customer Identification Code (UCIC) guidelines issued by RBI mandate that a cus-tomer must not have more than one CIF in a Bank in his name.

Bank has implemented the UNIFORM CUS-TOMER IDENTIFICATION CODE (UCIC) – a rela-tionship number - in the form of Customer In-formation File (CIF) to all customers of the Bank simultaneously with the introduction of CBS in the Bank. As per RBI guidelines, all the multiple CIFs, either at the same Branch or at different Branches, of the same customer



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should be de-duped/ merged into a single CIF (the process being called de-duplication of CIFS) - to meet the requirements of RBI guide-lines. (e.cir.sl.no.711/2014 – 15 dt:18/09/2014)

Under PMJDY, RuPay Debit Cards are to be provided to all Basic SB account holders to ex-tend to them the benefit of Rs. one lac acci-dent insurance cover.

Auto issue of RuPay Debit Cards would be ap-plicable to FI accounts only and would not be applicable to normal SB accounts.

The account opening form for Small Accounts and included declaration Forms 60 & 61 and customer's request to opt for Rupay card and seed Aadhaar number as a part of account opening form. The modified form has to be used for opening of all Small Accounts both at branch and BC channel except for Small Ac-counts opened under product code 1011-1711 (under BSBD) as they are full KYC complaint accounts.

FI accounts Product Code 1011-1601, 1611-1411 and 1611-1401

(e.cir.sl.no.797/2014 – 15 dt:01/10/2014)

Owing to centralization of ATM complaints at GITC, Bank has decided to withdraw all discre-tionary powers (discretionary powers to settle the disputed ATM transactions by paying up to Rs. 15,000/- with customer transaction slip showing unsuccessful transaction and Rs.5,000/- without transaction slip)of branches for resolution of customer complaints for un-successful transactions. Accordingly, SOP will not be applicable any longer for handling of unsuccessful transactions.

In terms of RBI instructions on reporting re-

quirements in AML / CFT Measures, Branches are required to submit cases of transactions abandoned / aborted by the customers on be-ing asked to give some detail or to provide documents, as Suspicious Transaction Reports (STRs).

As per extant instructions, every CSPs should be

visited by the Branch Manager or any other desig-nated official of the link branch (circular letter No. RBNF/AC/Cir. (L) No. 05/2009/10 dated 09.02.2010) to carry out the following tasks:-

a) To monitor the activities at CSP outlets. b) To collect and check applications received for opening of accounts. c) Marketing for loans/advances. d) Deposit Mobilization e) Financial Literacy among customers of the area The periodicity of visit to CSPs by the Branch Manager or any other designated officials must be scrupulously maintained as under and such visits to be recorded through the online por-tal through the link http://10.4.248.245/CSPVisits/Login.aspx}.

Position Periodicity Category

Branch Manag-er/any other designated offi-cial such as RMRO/FO etc.

Monthly Every CSPs irres-pective of Geography (i.e. Metro/Urban/Semi urban/ Rural (with popu-lation <2000)

Branch Manag-er/any other designated offi-cial such as RMRO/FO etc.

Weekly on a prefixed day and time

Every CSPs in FI villages with population of 2000 or more

Those persons who do not have any of the ‘official-ly valid documents’ can open Small Accounts with Banks. A Small Account can be opened on the basis of a self attested photograph and putting her/his signature or thumb print in the presence of an official of the Bank. Such accounts have limitations regarding the aggregate credits (not more than Rupees One lakh in a year), aggregate withdrawals (not more than Rupees ten thousand in a month) and balance in the accounts (not more than Ru-pees fifty thousand at any point in time). These Small Accounts would be valid normally for a pe-riod of twelve months. Thereafter, such accounts would be allowed to continue for a further period of twelve more months, if the account holder pro-vides a document showing that she/he has applied for any of the officially valid document, within twelve months of opening the Small Account. (e.cir.sl.no.1151/2014 – 15 dt: 29/12/2014)