Banking Regulations and KYC Perspectives

The person who ultimately owns or controls a client of a reporting entity, or the person on whose behalf a transaction is being conducted.

Form F is used to cancel a nomination in a PPF account.

A legal document used to add a nominee to a PPF account.

A PPF account can have one or more nominees.

Two witnesses are required when registering a nominee for a PPF account if the nominee is illiterate.

You can change the nominee for a PPF account at any time.

A policy that includes Know Your Customer (KYC) elements for safeguarding and verifying customer identities.

A component of the KYC policy that defines how the financial institution accepts new customers.

Ownership of more than 25% of a company's shares, capital, or profits.

The right to appoint the majority of directors or influence management decisions. This can be through shareholding, management rights, agreements, or voting power.

A natural person who owns more than 15% of a partnership's capital or profits.

A natural person who owns more than 15% of an unincorporated association's property, capital, or profits.

The senior managing official, if no individual is identified as owning more than 15% of the company's shares, capital, or profits.

A savings account with limited transaction amounts and a capped balance.

The total deposits into a small account in a financial year cannot exceed Rupees one lakh.

The total withdrawals and transfers from a small account in a month cannot exceed Rupees ten thousand.

A document issued by the National Rural Employment Guarantee Act (NREGA) and signed by a state government official.

A document issued by the National Population Register that includes the name and address of an individual.

A document that serves as proof of identity, including both Aadhaar and any alternative Virtual Identity Number (VIN).

Any document that serves as proof of address, particularly for individuals who have changed their name after marriage. This could be a marriage certificate issued by the state government or a Gazette notification.

A copy of an officially valid document, verified by an authorized bank officer, where the copy is compared with the original document.

A document that is accepted as proof of address when the primary OVD does not contain the updated address. It must be submitted within three months of submitting the initial documents.

A process where banks collect information about their customers to verify their identity and assess risk.

A personal declaration from a customer stating their current address differs from their Aadhaar record. It's used when a customer submits Aadhaar for identification and provides a different address.

A situation where the information on a customer's PAN card does not match the information on their officially valid documents (OVDs) submitted during Customer Due Diligence (CDD).

A video-based customer identification process that uses technology to verify a customer's identity remotely.

A secure QR code generated by the Unique Identification Authority of India (UIDAI) to verify the authenticity of Aadhaar documents.

An audit conducted to ensure the proper implementation and effectiveness of the Video-based Customer Identification Process (V-CIP).

A process that involves heightened scrutiny and due diligence measures while establishing an account for a Politically Exposed Person (PEP).

A person who holds, or has held, a prominent public function in a government or political organization.

A process that involves gathering information about the PEP's family members and close relatives to assess potential risks related to their accounts.

A system for storing and managing customer KYC (Know Your Customer) records.

Failure to accurately upload documents, such as using incorrect file types or sizes for signatures, photos, or AOFs.

Missing required information in the Application for Opening Account (AOF), particularly those marked with an asterisk.

Incomplete uploads, such as missing document sections or documents completely missing, including Part-I, Part-II, AOF, POI, POA, and others.

Placing documents in the wrong sections of the upload tabs, leading to miscategorization of information.

Lack of verification of photocopies and documents, such as missing signatures, names, or Social Security numbers of the Bank official.

Mismatch between names in the Application for Opening Account (AOF) and the ID proof document.

Missing required documents like PAN, Form-60, or FATCA, which are essential for tax purposes.

Failure to update personal details in the CBS (Core Banking Solution) system, specifically in screen

When a nominee is illiterate, two witnesses are required to sign the nomination form. They need to provide their full address and phone number.

The percentage of the account balance that each nominee will receive must be specified in the nomination form when multiple nominees are named.

The nominee's date of birth and relationship to the account holder must be accurately recorded. This information is essential for identifying the right person to receive the account balance after the account holder’s death.

If the nominee is a minor, information about their guardian must also be recorded in the nomination form.

For customers residing outside the branch's local area, the branch should obtain proof of their permanent address, even if different from the official address listed for account opening purposes.

Depending on the account type, branches must obtain and verify various documents as per KYC guidelines. These documents are essential for verifying the identity and legitimacy of the account holders.

For current accounts, it's crucial to confirm that the account holder does not have an existing current account or credit facility at another financial institution. A confirmation statement is needed to prevent duplication of services.

When opening accounts for non-individuals, the branches must ensure that each account is promptly linked to the respective customer information file (CIF). Delays in linking can lead to account inactivity and require re-linking, causing unnecessary work.