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Know your Customer (KYC)?

Know Your Customer(KYC) is the process of verifying the identity of customer. The objective of KYC guidelines is to prevent banks from being used, by criminal elements for money laundering activities. It also enables us to understand our customers and their financial dealings to serve them better and manage its risks well.

Purpose
The KYC guidelines have been put in place by the Reserve Bank of India in the context of the recommendations made by the Financial Action Task Force (FATF) on Anti Money Laundering (AML) standards and on Combating Financing of Terrorism (CFT). The Prevention of Money Laundering Act requires banks, financial institutions and intermediaries to ensure that they follow certain minimum standard of KYC and AML.

Importance of KYC
KYC is the means of identifying and verifying the identity of the customer through independent and reliance source of documents, data or information. For the purpose of verifying the identity of:

  • Individual customers, CR-I will obtain the customer’s identity information, address and recent photograph.
  • Non-Individual customers – CR-I will obtain identification data to verify the legal status of the entity, operating address, the authorized signatories and beneficial owners.
  • Individuals (Documents acceptable as proof of identity/address)
  • Passport
  • Voter’s Identity Card
  • Driving Licence
  • Aadhaar Letter/Card
  • PAN Card

NRIs

  • Passport and Residence Visa Copies, duly attested by (Foreign offices, Notary Public, Indian Embassy)

Proprietary concerns

Proof of the name, address and activity of the concern

  • ID and address proof of the proprietor 
  • Registration certificate. 
  • GST certificate & PAN Card. 
  • Certificate /registration document issued by Sales Tax/Service Tax/Professional Tax authorities. 
  • Utility bills such as electricity, water, and landline telephone bills in the name of the proprietary concern.

Partnership firms

  • Registration certificate 
  • Partnership Deed 
  • An officially valid document in respect of the person holding a power of attorney to transact on its behalf. 
  • GST certificate & PAN Card. 

Additional Documents for LLP

  • An LLP agreement 
  • A Certificate of Incorporation

Companies

  • Certificate of Incorporation 
  • Certificate of Commencement of Business (for public limited companies). 
  • Memorandum & Articles of Association 
  • A resolution from the Board of Directors and power of attorney granted to its managers, officers or employees to transact on its behalf; and 
  • The latest list of Directors 
  • GST certificate & PAN Card 
  • Udhyam Registration in MSME case. 

Trusts & foundations

  • Certificate of Registration, 
  • Trust Deed, 
  • An officially valid document in respect of the person holding a power of attorney to transact on its behalf. 
  • GST certificate & PAN Card. 

Unincorporated association or body of individuals

  • Resolution of the managing body of such association or body of individuals, 
  • Power of attorney granted to him to transact on its behalf, 
  • An officially valid document in respect of the person holding an attorney to transact on its behalf. 

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