KYC requirement for opening a Bank account

KYC requirement for opening a Bank account

KYC – Know Your Customer is now compulsory for opening the Bank Account. All nationalized banks like SBI, Bank of India, SBH, Vijaya Bank, Maharashtra Bank, Bank of Maysor, Patiyala, Oriental bank & other banks have started a process to verify their Customer. So Following are the details of KYC 2016 – 2017.
To open a bank account, one needs to submit a ‘Proof of identity’ and ‘Proof of address’ together with a recent photograph.

What are the documents to be given as ‘Proof identity and ‘Proof of addresses?

Customers/ Clients  Documents 
Accounts of individuals proof of identity and Address  (i) Passport (ii) Pan card  (iii) Voter’s Identity Card (iv) Driving License (v) Job Card issued by NREGA duly signed by an officer  of the State Govt (vi) The letter issued by the unique identification Authority of India (UIDAI) Containing details of name. Address and Aadhaar number.
Accounts of Companies  (i) Certificate if incorporation (ii) Memorandum and Articles of Association (iii) A resolution from the Board of Directors and Power of attorney granted or employees to transact on its behalf; and (iv) An officially documents or employees holding an attorney to transact on its behalf.
Accounts of Partnership Firms  (i) Registration Certificate (ii) Partnership deed; an and officially valid document in respect of the person holding an attorney to transact on its behalf.
Accounts of Trusts (i) Registration Certificate and trust deed; (ii) an officially valid document in respect of the person holding a power of attorney to transact on its behalf
Accounts of unincorporated association or a body of individuals  (i) Resolution of the managing body of such association or body of individuals (ii) Power of attorney granted to him to transact on its behalf (iii) an officially valid document in respect of the person holding an attorney to transact on its behalf.
Accounts of Proprietorship Concern  (i) Address proof (ii) Identity Proof (iii) activity of the concern Registration certificate (iv) Certificate/ license issued by the Municipal authorities under Shop & Establishment Act (v) Sales and Income Tax return (vi) CST / VAT Certificate (vii) Certificate/ registration document issued by Sales Tax/ Services Tax Professional Tax authorities (viii) License/ Certificate of Practice issued in the name of the proprietary concern by any professional body incorporated under statute.(ix) The  complete Income Tax return in the name of the sole proprietor where the firm’s income is reflected, duly authenticated/ acknowledged by the Income Tax Authorities.(i). (ii), (iii) an any two documents from (iv) to (ix) 
 

What types of accounts / transaction are subject to KYC norms ?

a) All types of deposit accounts.
b) All types of borrowal accounts.
c) Collection / Purchase of Instruments.
d) All types of Remittances / Funds transfers e.g. TT/ DD/ MT/ ABB, RTGS/ NEFT etc.
e) Foreign Exchange Transaction ( Both inward and outward ), encashment of Currency / traveler’s Cheques, collection of instruments etc.

If a person does not have any of the documents listed above,can they still open a bank account?

Yes. a person can still open a bank account known as ‘Small Account’ by submitting the recent photograph and putting the signature or thumb impression in the presence of the bank official .

Is there, any different between such ‘small account’ and other accounts 

Yes/ The ‘Small Account’ have certain limitations such as :
a) Balance in such accounts at any point of time should not exceed Rs. 50,000/-
b) Total credits in one year should not exceed Rs. 1,00,000/-
c) Total withdrawal and transfer should be not exceed Rs. 10,000/- in a month.
d) Foreign remittances cannot be credited to such accounts.
Such accounts remain operational initially for a period of twelve months and thereafter, for a further period of twelve months, if the holder of such an account provides evidence of having applied for any of the officially valid documents within twelve months of the opening of such account. The bank will review such account after twenty four months to see if it requires such relaxation.

Can a person open a bank account with only an Aadhaar Card?

Yes, Aadhaar card is accepted as proof of both, identity and address.

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