This document discusses types of bank customers and Know Your Customer (KYC) procedures. It defines a bank customer as someone who has an account with a bank branch. Anyone can open an account by providing valid KYC documents like photo ID and address proof. Banks must follow KYC policies regarding customer acceptance, identification, transaction monitoring, and risk management. The document also outlines different types of individual customers like single or joint accounts, and non-individual customers like HUFs, companies, trusts and societies.

1. BANKING
TYPES OF
CUSTOMERS
PRESENTED BY
MOHIT SHARMA
G D MEMORIAL COLLEGE, DOMAIN
COURSE BANKING AND FINANCIAL
SERVICES

2. BANK CUSTOMER
Introduction
One who has an account with any branch of a bank is said
to be that bank’s customer.
• Anyone can open an account with a bank provided he or
she is sound of mind and can provide KYC
documents.
• KYC stands for ‘KNOW YOUR CUSTOMER’.
These documents are:
1. Photo id: PAN Card, License
2. Address proof: Aadhar Card, Electricity Bill, Ration Card.
Banks are required to frame their KYC policy basis the 4 key pilla

3. Acceptance
Policy
Identification
Procedures
Monitoringof
Transactions
RiskManage-
ment

4. CUSTOMER ACCEPTANCE POLICY
No account should be opened in
fictitious name.
Low, Medium and high risk
Nature of business
Turnover
Volume of transactions and financial
status
Person should not have any criminal

5. CUSTOMER IDENTIFICATION
PROCEDURE
Establishing the customer identity
Verifying data.
-e.g. Passport, voter ID, aadhar card, PAN
card, utility bills etc. and a photograph.
Identification should repeat
Every two years For high risk
customers
Once in 10 years For low risk customers
Once in 8 years For medium risk

6. MONITORING OF
TRANSACTIONS
Background of the customer
Source of funds
Nature of business
Levels of transaction
Very high turnover in small
accounts
Identification of any deviation
from the

7. RISK MANAGEMENT
Overviewed by senior resources
Accounts are regularly monitored
 Bank must be devise risk profile for
their new as well as existing
customers.
Any deviation in the volume or type of
transactions must be immediately
flagged off.

8. A. Individual Customers
INDIVIDUAL
SINGLE ACCOUNT
OPENED IN THE NAME OF
ONE INDIVIDUAL
JOINT ACCOUNT
OPENED IN THE NAME OF
THE OR MORE INDIVIDUAL

9. A. Individual Customers
Accounts in the name of literate
person/s
Accounts in the name of illiterate
person/s
Accounts in the name of blind
customers
Accounts in the name of minors

10. B. Non Individual customers
Account of Hindu Undivided Family (HUF).
Accounts of Partnership Firms
Accounts of Limited Companies
Accounts of non- trading Institutions such as Clubs, Schools
etc.
Accounts of Trusts
Accounts of Executors and Administrators
Accounts of Statutory Corporations
Accounts of Cooperative Societies
Accounts of Associations registered under Societies
Registration Act, 1860.

11. THANKING YOU
FOR GIVE THIS GREAT OPPORTUNIY