Frequently asked questions

1.What is K Y C?

KYC is “Know Your Customer” and it means

(a) making reasonable efforts to determine the true identity and beneficial ownership of accounts.

(b) to know the source of funds and

(c) to know the customer’s business

2. What is the important process involved in KYC?

(a) Customer Acceptance Policy

(b) Customer Identification Procedure

(c) Monitoring of Transactions

(d) Risk Management

3. Who is a Customer?

A customer is defined as

• a person or entity who maintains an account and / or has a business relationship with the Bank
• one on whose behalf the account is maintained (Beneficial Owner)
• beneficiaries of transactions conducted by professional intermediaries such as stock brokers, chartered accountants, solicitors, etc., as permitted under the law.
• any person or entity connected with a financial transaction which can pose significant risk to the Bank, say a wire transfer or issue of high value demand draft as a single transaction.

4. What is Customer Identification Procedure?

This means identifying the customer and verifying the identity through reliable and independent documents, data and information in order to establishing conduct of due diligence in accordance with the statutory requirements.

5. What precautions should be taken in the case of “Non face to face customer”?

Certification of all the documents presented may be insisted upon and if necessary additional documents may also be called for. The first payment is to be effected through his/her account with another bank where KYC is complied with. In case of cross border customers, certificate / introduction is to be obtained from a third party who is a regulated / supervised entity and has adequate KYC systems in place.

(Non face to face customer is one who becomes a customer without visiting the branch)

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