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ANNEXURE-1
CODE
OF CONDUCT FOR OPENING OF CURRENT DEPOSIT
ACCOUNT:
Code
of conduct prescribed by RBI for opening
of Current Account requires the bank
to obtain detailed information from
the applicants about credit facilities
enjoyed by them. Therefore, as a part
of due diligence, the bank will obtain ‘No Objection Certificate’
from the existing bankers in this regard
before opening of Current Account.
RETURNING
OF CHEQUES ISSUED BY THE CUSTOMERS:-
(1)
The conduct of accounts in which cheques
are frequently returned for want of funds
will be reviewed and if deemed fit, requests
for issue of fresh cheque book in such account
may be turned down.
(2)
Further, all customers are requested to
take notice that as per RBI instructions
to enforce financial discipline among the
customers, the bank will issue a cheque
book on request of the customer subject
to the following conditions:-
v
In the event of dishonour
of cheque issued by account holder valuing
rupees one crore and above drawn on their
account with the bank on four occasions
during a financial year for want of sufficient
funds in the account, no fresh cheque book
will be issued.
v
It would be at bank's sole
discretion to continue such account and
the bank may close the account if considered
necessary and all such decision will be
binding on the customer / constituents.
ISSUE
OF DUPLICATE DD:
After
making required due diligence & inquiry
by the branches, the duplicate demand
draft in lieu of lost draft will be issued
on receipt of such requests. The duplicate
demand draft will be issued within fortnight
from the date of receipt of such requests
from the purchaser or the beneficiary
after compliance with necessary formalities.
(Kindly note that the time period of
fortnight is not applicable for DDs with
third party endorsements) For delay beyond
this stipulated period, the branches
will pay interest at the rate applicable
for fixed deposit of corresponding maturity
in order to compensate the customer.
KNOW YOUR CUSTOMER (KYC) STANDARD AND ANTI MONEY LAUNDERING (AML) MEASURES: GUIDELINES.
In
line with the RBI guidelines and rules
under PML Act, 2002 (PMLA), Bank has
formulated Policy on KYC & AML. The
key elements of the Policy and guidelines
are as follows:
(a) Customer Acceptance
(b) Customer Identification
(c) Monitoring of Transactions
(d) Risk Management
Definition of a Customer
A customer for the purpose of these guidelines is defined as:
(i)
A person or an entity
that maintains an account and/or has a business
relationship with the Bank (including borrowers
and guarantors of loans
sanctioned by the bank, Demat account holders,
Locker holders, etc.).
(ii) One on whose
behalf the account is maintained
[i.e. the beneficial
owner]
(iii)
Beneficiaries of transactions conducted by professional intermediaries,
such as Stock Brokers, Chartered Accountants,
Solicitors etc. as permitted under
the law, and
(iv)
Any person or entity connected
with a financial transaction.
Customer
Acceptance
Branches
will not open accounts of persons whose
identity can not be verified by them. Apart
from this, no account will be opened in
the name of an undischarged insolvent or
insane and if an account holder subsequently
becomes insane, his account will be stopped
after receipt of notice of lunacy and no
operation will be allowed upon it until
a guardian/administrator is appointed by
the Court.
The
Branches while opening an account will carry
out appropriate customer due diligence measures
i.e. verifying identity and obtain documents
required. In respect of existing accounts, if
required information / documents are not forthcoming,
due to non cooperation of the customer or
non reliability of the data/Information furnished to the branch, the branch manager may decide to close the account
after giving one month notice to
the customer explaining the reasons for such a decision.
Additional Information which will be collected for Risk
Categorization:
(i) purpose
/ reason for opening the account or establishing
the relationship
(ii)
anticipated level and nature of the activity that is to be
undertaken
(iii)
expected source of funds
(iv)
details of occupation/employment
and sources of wealth or income
Reasonable
steps will be taken to keep the information up to date.
Customer Identification
Accounts of Individuals:
The
customer identification will be on the basis
of documents provided by the customer as (a) Proof of identity
and (b) Proof of address. Prescribed
application form along with Photographs of the customer will be invariably
obtained in all cases.
(a)
Proof of identity (any of the following
with authenticated photographs thereon)
(i)
Passport,
(ii)
Voter ID Card,
(iii)
PAN Card,
(iv)
Govt./Defence ID Card,
(v)
ID Cards of reputed employers,
(vi)
Driving License
(b) Proof of current address
(any of the following)
(i)
Credit Card Statement,
(ii)
Salary slip,
(iii)
Income/Wealth Tax Assessment Order,
(iv) Electricity
Bill,
(v)
Telephone Bill,
(vi) Bank
account statement,
(vii) Letter from
reputed employer,
(viii)
Letter from any recognized public
authority,
(ix)
Ration Card
v
While the above set of documents
should normally suffice to establish both
the identity and the correct address of
the applicant, wherever this is not so (e.g.
PAN Card and Salary slip together may not
provide proof of address) applicants will
be asked to give additional documents e.g.
a letter from the employer giving the correct
address, credit card statement etc.
v
In case of joint accounts,
applicants who are not closely related to
each other would require to establish their
identity and address independently.
Exemptions for documentation:
Branches will open accounts
for those customers who are in no position
to submit the above mentioned documents provided they intend to maintain
balances not exceeding rupees fifty thousand (Rs.
50.000/-) in
all their accounts taken together
and the total credit summation in all the accounts taken together is not expected to
exceed rupees one lakh (Rs.100000/-) in
a year, subject to:
(i)
Obtaining an introduction from another
account holder who has been subjected
to full KYC procedure. The introducer’s
account with the bank should be at least
six months old and should show satisfactory
transactions. Photograph of the customer
who proposes to open the account and
also his address needs to be certified
by the introducer,
OR
(ii)
Any other evidence as to the identity and
address of the customer to the satisfaction
of the bank.
While opening accounts as described
above, the customer should note that if at any point
of time, the balances in their accounts
with the bank (taken together) and the total
credit (summation) exceeds the above threshold,
no further transactions will be permitted until
the full KYC procedure is completed. In order
not to inconvenience the customer,
the branch will notify the customer when the balance reaches rupees forty
thousand (Rs. 40,000/-) or the total credit in a year reaches rupees eighty
thousand (Rs. 80,000/-) of the requirements under
full KYC procedure.
Individual NRE Accounts:
Accounts
will be opened on the basis of the following
documents:
Passport
and Residence Visa Copies duly attested
by
(i)
Banker
(ii)
Notary Public
(iii)
Indian Embassy
(iv) A person known to the bank,
i.e. other account
holders, staff members etc.
In case of attestation by self, any
TWO of the following documents to be attached:
(i) Cheque
drawn on his account with correspondent
bank account abroad
(ii)
Latest Overseas Bank statement in
original
(iii)
Copy of Telephone/Electricity Bill
(abroad)
(iv) Cancelled paid cheque
of Overseas Bank A/c.
(v)
Proof of Income* / Employee ID /
Labour Card
*
Pay slip/ Tax return etc.
In
the case of NRI customers who want to
open accounts without visiting the branch
they will be treated as "non face to face"
customers and necessary due diligence as
applicable to "non face to face"
customers will be done as discussed in
subsequent paragraphs.
Accounts of Minors:
Often a family member
or guardian would open an account (SB, RD,
and TD) for a minor if minor is less
thon 10 years of age. ID proof of the person
who will operate the account is to be obtained. In cases where minor can operate
an account independently, the KYC procedure
for identification would apply. Joint
accounts involving more than one minor will
not be opened.
Apart
from above, no Current Account will be opened
in the name of Minor without prior reference
to the Head Office, unless a guardian of
the property (not merely of the person)
of the Minor has been appointed under the
Guardians and Wards Act shall remain unchanged.
Other than Individual accounts:
Besides
prescribed application forms and photographs
of persons who will be operating the account, following documents are
also to be obtained:
Companies:
- Memorandum
and Articles of Association
- Certificate of Incorporation,
- Certificate of commencement of
business
(wherever applicable)
- A copy of the resolution of the Board
of directors for opening of the
account and
- Identification of those who
have authority to operate the account
[as applicable to
Individual accounts as laid down In Para
5.1 above.)
Societies/Associations/Clubs:
- Resolution
for opening of the account
- A copy of Bye-laws
- Copy of certificate of registration in
the case of registered clubs, societies and associations.
- Proof
of Identification of the office bearers
who are opening and
operating the account.
Hindu
Undivided Family (HUF):
HUF
comes into being because of a particular
concept under
Hindu Law whereby all the members of the
family reside together jointly, carry on
a business activity jointly and hold the
property jointly and therefore, it is termed
as Hindu Undivided Family.
- Declaration from the Karta.
- Proof of Identification of Karta.
- Prescribed Joint Hindu Family Letter signed
by all the adult coparceners.
Trusts
- A copy of the resolution,
- Trust deed,
- A
copy of registration certificate,
- Power of Attorney granted to transact
business on its behalf (wherever applicable).
- Any officially valid document
to identify the trustees. Settlors, beneficiaries
and those holding Power of Attorney.
Partnership firms:
- Partnership deed
- Partnership letter
- Introduction from a person known to the
bank
- Registration Certificate {in case
of Registered firm}
- Any officially valid document identifying
the partners and the persons having Power
Of Attorney and their addresses
- Telephone
bill in the name of
firms/partners.
Extra information will be sought in the following cases:
(i)
Trust/Nominee or Fiduciary
Accounts
Branches
will determine whether the customer
is acting on behalf of another person as
trustee/nominee or any other intermediary.
If so, branches will
insist on
production
of satisfactory evidence of the identity of
the intermediaries and of the persons on whose behalf they are acting as also details
of the nature of the trust or other arrangements in place.
While
opening a Trust account, branches will verify
the identity of the trustees and the settlors
of trust (Including any person settling assets
into the trust), grantors, protectors,
beneficiaries and signatories. In the
case of a 'foundation', steps will
be taken to verify the founder managers/directors and the beneficiaries.
(ii) Client accounts Opened by professional intermediaries
Branches will exercise due diligence
at the time of opening accounts by
intermediaries such as guardians of estates, executors, administrators,
assignees, receivers etc. E.g.
while opening of the account of an
administrator of the estate, it would be necessary to examine the Letter of Administration
(Authority) so as to know
a clear picture of the assets of the estate.
(iii)
Accounts of Politically Exposed Persons (PEPs) resident outside India, their family members and close relatives.
Branches
will verify the identity of
the person and seek information
about the sources of funds before
accepting the PEP as a customer. Such accounts
will be subjected to enhanced monitoring on an ongoing basis.
The
above norms will also be applied
to the accounts
of the family members and close relatives of
PEPs.
(iv)
Accounts of Companies and Firms
Branches will
examine the control structure of the entity,
determine the source of funds so as to identify
the persons who have a controlling Interest
and who comprise the management.
(v) Accounts
of non-face-to-face customers
Non face to face customers are those with
whom the Branch has not had direct interaction
at the time of opening the account E.g.
NRI customers who opened the account without
visiting the branch. These accounts would
require additional documentation as the
Bank may specify. (E.g. Certification by
independent authority such as Notary / insisting on additional
documentation to establish identity and
address etc)
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