KYC, or Know Your Customer, refers to banks obtaining and verifying key information about customers. This includes their identity, address, and occupation. The KYC process helps prevent money laundering and terrorism financing. It involves filling out a KYC form and providing identity documents like a PAN card and address proof. Key elements of KYC policies include customer acceptance criteria, customer identification procedures, monitoring transactions, and managing risks. Effective KYC implementation and monitoring of high-risk accounts is important.

4. What KYC means?
Know
1) Identity of customer
2) Address of customer
Your(who should know)
Branch manager, Audit officer, Monitoring Officials,
PO
Customer
Individual, Company/Business entity, CA’, etc.

7. KYC Registration Process
 Download the KYC form
 Completely filled KYC application form
 Documents required:
 PAN card
 Copy of Address proof: Latest Telephone
Bill/Mobile /Latest Electricity Bill /Passport copy
/Latest Bank Passbook/Bank Account Statement
/Driving License/Ration Card

11. Why KYC is Important??
 To Prevent Money Laundering.
 To Combat finance of Terrorism.
 To Manage Risk.
 To Check Identity Theft.

12. Key Elements of KYC Policies-
1) Customer Acceptance Policy:
Customer Acceptance Policy refers to the general
guidelines followed by banks in allowing customers to
open accounts with them. Generally the guidelines
stipulate that no accounts shall be opened in anonymous
or fictitious names or when the identity of the customer
matches with any person with known criminal
background or banned entities. Similarly accounts should
not be opened when the bank is unable to verify the
identity and/or obtain documents required as per the
bank’s policy.

13. 2) Customer Identification Procedure:
Customer identification means identifying the
customer and verifying his/her identity through
reliable and independent documents, data and
information. Banks would need to satisfy to the
competent authorities that due diligence was
observed in accordance with the requirements of
existing laws and regulations.

14. 3) Monitoring of transaction
 KYC process does not end and start with
opening of accounts
 Transactions should be monitored depending on
the risk sensitivity of the account
 Special attention is to be paid to all complex,
unusually large transactions, which have no
lawful purpose
 High risk accounts should be subjected to
intensive monitoring

15. 4) Risk Management
 Effective KYC programme should be there and
effective implementation
 Responsibility should be explicitly located
within the bank to ensure bank’s policies and
procedures are implemented effectively
 Bank should look into customer’s education,
intro of new technology, etc

16. KYC Documents

21. Small Deposit Account
 Small Account means a saving account where
the balance does not exceed rupees 1 lakh
 The balance at any point of time does not
exceed Rs. 50,000
 Documents-
 Identity card with applicant’s photograph
 For Rural customers Kisan Passbook issued
by Revenue Authority containing photograph
and address is a valid document