Banking operations are susceptible to the risks of money laundering and terrorist financing. In order to arrest money laundering, where banks are mostly used in the process, it is imperative that they know their customers well. On combating financing of terrorism, RBI has specified certain standards based on which our Bank has formulated a policy on identification and acceptance of customers to have a business relationship with us. Our branches are required to prepare and maintain documentation on their customer relationships and transactions to meet the provisions of the Prevention of Money Laundering Act and other laws and regulations. RBI has issued the KYC guidelines under Section 35 (A) of the Banking Regulation Act, 1949 and any contravention of the same will attract penalties under the relevant provisions of the Act. Thus, the Bank has to be fully compliant with the provisions of the KYC procedures. The due diligence expected under KYC involves going into the purpose and reasons for opening an account, anticipated turnover in the account, sources of wealth (net worth) of the person opening the account and sources of funds flowing into the account.
(a) Before commencing a business relationship with a prospective customer, the Bank has to ensure that such a relationship does not, in any way, go against its Customer Acceptance principles viz., No account is opened in anonymous or fictitious/ benami name(s) and Customers are categorized based on risk perceptions in terms of the nature of business activity, location of customer and his clients, mode of payments, volume of turnover, social and financial status, etc. (b) A Customer Profile (in the prescribed format) containing information relating to the customer's social/ financial status, nature of business activity, information about his clients' business and their location, Sources of funds, Annual Income, etc. shall be obtained from/prepared for all the applicants for opening SB/CA/ Term deposits accounts.
Customer identification means identifying the customer and verifying his/her/its identity by using reliable, independent source documents, data or information. Any person fulfilling account opening requirements may, upon agreeing to comply with the prescribed rules, as mentioned hereunder, open a Savings Bank Account, provided she/he furnishes proof of identity and proof of address as required by the bank. The Applicant will need to furnish proof of identity and proof of address by way of the following: Proof of identity (any one of the following with authenticated photograph thereon): (a) Passport. (b) Voter ID card. (c) Govt. / Defence ID card. (d) ID cards of reputed employers. (e) Driving Licenses. (f) Letter from a recognized Public Authority / Public Servant / Pradhan. (g) Aadhar Card Proof of current address (any one of the following): (a) Ration card. (b) Credit card statement. (c) Salary slip. (d) Income / Wealth tax assessment order. (e) Electricity bill. (f) Telephone bill. (g) Statement of bank account. (h) Letter from reputed employer. (i) Letter from any recognized authority. (j) Aadhar Card
Where the Bank is unable to apply appropriate customer due diligence measures i.e. unable to verify the identity and/or obtain documents required as per the risk categorization due to non-cooperation of the customer or the data/information furnished to the bank is not reliable, it may take a decision not to open the account.
While tendering applications for opening SB/Current accounts in the names of Individuals/Sole Proprietary concerns, two copies of latest passport size colour photographs should be furnished. In case of joint accounts, Accounts of Partnerships, Limited Companies, Clubs, Associations, Societies, Trust, Institutions, etc. the photographs of person(s)/official(s) who are authorized to operate the account and in case of HUF, the photograph of the Karta should be provided. In case of Term Deposits, one copy of photograph shall be obtained provided the depositor does not have a Savings or Current account with the branch. The above provisions cover all categories of depositors including non-residents.
It is essential that the introducer should know fully well the prospective account holder whom he / she is introducing for a sufficiently long time. The introducer should be in a position to identify or be able to give more particulars about the account holder from his personal knowledge, when there arises any occasion at a later date. A dialogue or enquiry with the introducer is had so that he / she could be informed of his responsibility and the implications of introducing an account. In respect of accounts introduced by employees of other branches or where the introducer was not present while introducing the customer at the time of opening the account, no cheque/draft shall be collected till a confirmation of being introduced the account is received.
Relaxed KYC procedure refers to acceptance of an introduction in lieu of full KYC procedure subject to certain conditions prescribed. This relaxation is applicable for Low Income Group customers, individuals falling under the 'No frill' category, persons affected by natural calamities like floods, cyclone, tsunami, etc. Low Income group customers are those who keep balances not exceeding Rs. 50000 in all their accounts (FDR / CA / SB) taken together and the total credit summation in all the accounts taken together is not expected to exceed.
If the Bank is not able to adhere to the KYC norms in a particular account due to non co-operation by the customer or non-reliability of the data / information furnished to the Bank, it may close the account, after giving due notice to the customer explaining the reasons for such a decision.
The officer responsible for opening of accounts should scrutinize the originals of the photo ID/address documents and satisfy himself / herself about the prima facie authenticity of the same. Photocopies of these documents should be authenticated by the officer and kept along with the account opening form.
Under the Banking Laws (Amendment) Act of 1983, a provision has been made for providing Nomination facilities to banks' customers in respect of Deposit accounts. The salient features of the Nomination facility are given below: A depositor or depositors jointly may (a) Nominate a single person to receive the amount, in the case of death of the depositor or all the depositors as the case may be. A nominee cannot be an Association, Trust, Society or any other organization or any office bearer thereof in his official capacity. (b) Cancel the nomination already made - in Form - DA-2. (c) Vary the nomination (cancellation of existing nomination and giving fresh nomination) - in Form - DA-3. Nomination may be made only in respect of deposits which is held in the individual capacity or in the name of sole proprietary concerns. However, if there is a change in the constitution of the business concern (For example to Partnership or Limited Company) the nomination will stand cancelled. Nomination should not be made in respect of a deposit which is held in any other representative capacity as the holder of an office or otherwise. If any of the Joint account holders dies without giving any nomination, the surviving depositor(s) can make a valid nomination. In case of a deposit in the name of a minor, the nomination shall be made by a person lawfully entitled to act on behalf of the minor. If the nominee happens to be a minor, the depositor or depositors jointly may, while making the nomination appoint another individual, who is not a minor, to receive the amount on behalf of the nominee (minor) in the event of the death of the depositor/all the depositors, as the case may be, during the minority of the nominee. In case of a deposit held to the credit of more than one depositor, the cancellation or variation of a nomination shall not be valid, unless it is made by all the depositors surviving at the time of cancellation or variation of the nomination. Making of nomination, cancellation and variation of nomination shall be acknowledged by the bank in writing to the concerned depositor or depositors in the tear-off of the relevant duly completed form. Renewal of deposits will not in any way affect the nomination, variation or cancellation already made in respect thereof. The duly completed form of nomination or cancellation of nomination or variation of nomination filed with the bank shall be registered in the books of the bank. Where the nomination is made in the prescribed manner, the nominee shall, on the death of the sole depositor or on the death of all the depositors, as the case may be, become entitled to all the rights of the sole depositor or depositors in relation to such deposits to the exclusion of all other persons, unless the nomination is varied or cancelled. Payment by the Bank in accordance with the provisions, to the nominee will give a valid discharge in so far as the Bank is concerned. It is also specifically provided that the Bank need not take cognizance of any notice of claim by anyone other than the depositor or depositors in respect of deposit where nomination has been made, the only exception being the production of an order, certificate, decree etc., from a court of competent jurisdiction. In case the claim from the legal heir is supported by the documents, the legal heir concerned may be advised to obtain an injunction from the Competent Court to restrain the Bank from effecting payment to the nominee.. The third party's rights in the deposits i.e. the right as between the third party and the nominee has to be worked out between them independently and without reference to the Bank. The nomination can be made at the time of opening the deposit or at anytime later during the currency of the deposit. The customer has to indicate his options in the account opening form whether he intends availing nomination facility or not. While lodging the claim in the prescribed format, the nominee should also submit the proof of death of the depositor. As proof of death, certificate in original issued by any of the following authorities with their official seal may be accepted. (a) Municipality or Corporation (b) Village Official (c) Panchayat Official (d) Registrar of births and deaths (e) Authorities of a Hospital or a Nursing Home where the account Holder died. Subject to fulfilling the norms, such claims by the nominee are settled by the Branch Manager irrespective of the amount involved. A letter shall be sent to the nominee in case the claim is not received within three months from the date of notice of death received by the Bank. In respect of term deposits, no loan shall be granted to the nominee on the death of the depositor, before the maturity of the deposit. But foreclosure as per rules is permitted on the request of the nominee, after the death of the account holder. Whenever addition / deletion / substitution of names in a deposit account is made, branches should obtain a fresh nomination from all the joint deposit holders, after such addition/deletion/ substitution.
The payment of interest is subject to the directives issued by RBI from time to time and any change in the rate of interest may be notified through advertisements in the website, diaplayed on notice board. The current rate of interest paid on saving Bank accounts can be ascertained from the Bank. Interest will be calculated on EoD balance on daily basis for Saving Accounts, and will be credited to the account at half yearly intervals on the last working day of March & September. Interest will be paid only it works out to Rs. 1 or more. Thereafter, fifty Paise and more will be rounded off to the next higher rupee and anything less will be ignored. Transfer of Accounts Accounts can be transferred from one branch to another branch of the Bank free of charge. The account holders may submit their request letters along with the passbook either to the branch where the accounts exist or to the branch where they intend to transfer their accounts. The unused cheques leaves issued by the existing branch should be surrendered to the Branch along with the request letter for transfer of account.
In case of joint accounts(operable by both jointly or both or survivor or all of them or survivors or either or survivor) all the joint account holders must sign the request letter to transfer/closure of the account. Account holder(s) desirous to close their accounts should submit their applications stating the reasons for closure. The passbook, unused cheques and the ATM (after cutting into two pieces across the magnetic strip) must be surrendered along with the request letter. A service charge be recovered if the account is closed before twelve months of its opening. This information can also be obtained from branches. The request letter for closure for joint accounts must be signed by all the account holders.
The Bank reserves the right to alter, delete or add to any of these rules for which the customer will be duly notified through Bank's Website and / or branch notice board.
For the ready reference, we give below the gist of guidelines: Branches shall maintain a waiting list for the purpose of allotment of lockers. All applications received for allotment of lockers shall be acknowledged and each shall be given a waiting list number. At least 80% of the lockers shall be allotted by the branches on first come first served basis. The remaining lockers could be allotted by the branch managers at their discretion to valued customers on business considerations. Branches shall not insist on term deposit as a pre-requisite for allotment of lockers. There will, however, be no objection to the branch seeking a deposit (but not as a condition for allotment) from the applicant who has been allotted a locker, the annual interest from which would not be more than the actual rent of the lockers. In the alternative, advance payment of locker rent for a period of one year plus approximate charges for breaking open of the locker may be collected from the locker holders. The Customer are cautioned to keep the customer key of his/her Locker in a place of safety and not divulge the number of his/her Locker and/or their password (if any given) to any other person and not to deliver the customer key to any person other than his/her/their duly authorized agent (if appointed).
According to RBI guidelines, the agreement needs to be on stamp paper. The primary objective of the revised agreement is to protect the interest of locker holders. According to RBI guidelines, bank will provide a copy of the agreement to customers, if demanded. The copy of the locker agreement signed by both parties shall be furnished to the locker-hirer to inform her about her rights and responsibilities. The original agreement shall be retained with the bank's branch where the locker is situated.
At the time of locker allotment, the RBI has permitted banks to obtain fixed deposits (FD) capable of covering three year's rent and charges for breaking open the locker, if needed. This is to cover situations where the locker-holder neither operates the locker nor pays the rent. However, banks cannot break open the locker in case of customers with a good track record. Also, if the bank collects locker rent in advance, but the locker-holder surrenders the locker mid-term, the bank will have to refund the proportionate amount of advance rent collected.
Rupee one notes are issued with the signature of the Secretary, Ministry of Finance, Government of India. The notes of Rs. 2 and above denominations are bank notes and are issued with the signature of the Governor, Reserve Bank of India. The details of design, etc., of these notes are notified in the Gazette of India from time to time. It is not possible to lay down hard and fast rules as to the differences noticeable between genuine and forged notes. However, some salient features of genuine notes are described below.
The paper of all genuine notes is superior rag paper and when new, has a distinct crackle. The crackle, however, is reduced in humid atmosphere and as the note becomes soiled due to circulation.
All genuine notes must have watermark of the portrait of Mahatma Gandhi in the left hand window. Watermark is one of the important features which decides the genuineness of notes. If the watermark impression appears crude and without light and shade effect, the notes should be viewed with suspicion. A close examination of the watermark on a suspect note in comparison with that on a genuine note will help to decide whether the suspect note is genuine or not. Slight variations in the position of the watermark in the left hand window of the note can occur even in genuine notes and should not alone cause suspicion.
Thread: All genuine notes of Rs. 5 denomination and above have a security thread embedded vertically which should not only be discernible as a dark line when held against light but also when the note is held slantingly. The security thread can also be generally felt by fingers. The security thread may sometimes have a small gap in some genuine notes, i.e. may appear broken, and need not cause suspicion.
Genuine notes are printed in distinctive body colors over rainbow tints consisting of fine lines. The printing is neat and clean and free from broken lines and smudges. Register between front and back (i.e. between the design / graphics on the front and that on the back) when held against light is also almost perfect on genuine notes. Notes with crude appearance, broken lines, spelling mistakes, imperfect blending of tints and colors and bad front and back register have to be viewed with suspicion.
Genuine notes are printed using advanced printing techniques, both dry offset (flat printing) and intaglio security feature on certain denominations of notes. This printing feature can be felt as raised printing on paper by passing the fingers on the notes. Presently, denominations of Rs. 10 and above are printed with this feature of intaglio printing. In these denominations of notes, the figures of the denomination of the notes, name of the Reserve Bank of India, the guarantee clause, the promise clause, the signature of the Governor of the Reserve Bank of India, the language panel and the seal of Reserve Bank of India are in intaglio printing. Notes of denominations of Rs. 100, Rs. 200 and Rs. 500 have intaglio printing on both the sides. However, there is no intaglio print features on notes of Rs. 1, Rs. 2, Rs. 5, Rs. 10, Rs. 20 and Rs. 50 (bearing yacht motif on the reverse). The intaglio print may however be less sharp on notes which have become soiled due to circulation.
Genuine notes will bear a distinctive serial number along with prefix. The numerals and the alphabets of genuine notes will be in perfect alignment. Any change in the shape of individual numbers or non-alignment of numbers should be viewed with suspicion. The security features in MG Series 2005 and MG (New) Series banknotes are as under: Security Thread: The silver coloured machine-readable security thread in ?10, ?20 and ?50 denomination banknotes is windowed on front side and fully embedded on reverse side. The thread fluoresces in yellow on both sides under ultraviolet light. The thread appears as a continuous line from behind when held up against light. ?100 and above denomination banknotes have machine-readable windowed security thread with colour shift from green to blue when viewed from different angles. It fluoresces in yellow on the reverse and the text will fluoresce on the obverse under ultraviolet light. Intaglio Printing: The portrait of Mahatma Gandhi, Reserve Bank seal, Guarantee and promise clause, Ashoka Pillar emblem, RBI's Governor's signature and the identification mark for the visually impaired persons are printed in intaglio in denominations ?100 and above. See through register: On the left side of the note, a part of the numeral of each denomination is printed on the obverse (front) and the other part on the reverse. The accurate back to back registration makes the numeral appear as one when viewed against light. Water Mark and electrotype watermark: The banknotes contain the portrait of Mahatma Gandhi in the watermark window with a light and shade effect and multi-directional lines. An electrotype mark showing the denominational numeral in each denomination banknote also appears in the watermark widow and these can be viewed better when the banknote is held against light. Colour Shifting Ink: The numeral 200, 500 & 2000 on the ?200, ?500 and ?2000 banknotes are printed in a colour-shifting ink. The colour of these numerals appears green when the banknotes are held flat but would change to blue when the banknotes are held at an angle. Fluorescence: The number panels of the banknotes are printed in fluorescent ink. The banknotes also have dual coloured optical fibres. Both can be seen when the banknotes are exposed to ultra-violet lamp. Latent Image: In the banknotes of ?20 and above in the MG-2005 Series, the vertical band next to the (right side) Mahatma Gandhi's portrait contains a latent image, showing the denominational value as the case may be. The value can be seen only when the banknote is held horizontally and light allowed to fall on it; otherwise this feature appears only as a vertical band. In the MG (New) Series banknotes, the latent image exists in denominations ?100 and above. Micro letterings: This feature appears at different places on the banknotes and can be seen better under a magnifying glass. Additional Features introduced since 2015 New Numbering Pattern The numerals in both the number panels of the banknotes are in ascending size from left to right while the first three alpha-numeric characters (prefix) will remain constant in size. Angular Bleed Lines and Increase in the size of Identification Marks Angular Bleed Lines have been introduced in banknotes - 4 lines in 2 blocks in ?100, 4 angular bleed lines with two circles in between in ?200, 5 lines in 3 blocks in ?500, 7 in ?2000. In addition, the size of the identification marks in denominations ?100 and above have been increased by 50 percent. Information about the above security features present in the Indian banknotes denomination-wise is also available on the website www.rbi.org.in>>press releases. Alternately, information can also be accessed from https://www.rbi.org.in/scripts/FS_Notification.aspx?Id=11610&fn=2753&Mode=0