Career Guide 2025 PDF

Page 0 of 1187 Shri Ajay Kumar Srivastava Indian Overseas Bank MD & CEO Central Office, 763, Anna Salai, Chennai –2 FOREWORD Dear IOBians...

Page 0 of 1187 Shri Ajay Kumar Srivastava Indian Overseas Bank MD & CEO Central Office, 763, Anna Salai, Chennai –2 FOREWORD Dear IOBians, It is indeed a great pleasure to write this foreword for the 13th edition of Career Guide i.e. “Career Guide 2025”. In today's dynamic landscape, the banking industry is undergoing a remarkable transformation propelled by rapid technological advancements and changing customer preferences. This evolution has necessitated a fundamental shift in our approach towards banking services. The present scenario demands agility and adaptability from every professional in the banking sector. To thrive in this fast-changing environment, knowledge stands as a quintessential tool. Our "Career Guide" is meticulously crafted to serve as a compass, navigating our dedicated staff through the complexities of modern banking practices. This comprehensive resource is not merely a compilation of information; it is a strategic asset designed to empower our workforce. As the banking landscape continues to evolve, this guide will serve as a dependable companion, providing insights and strategies to cope with industry changes effectively. I encourage each member of our staff to utilize the "Career Guide" as a roadmap for personal and professional growth. In leveraging the knowledge within these pages, we equip ourselves to not only navigate the present challenges but also to anticipate and embrace the future of banking. I congratulate Mrs. Regimol B G, AGM & Principal and her entire faculty team for their initiation in bringing out this valuable edition for the benefit of our staff members. Together, let us embark on this journey of continuous learning and advancement, ensuring our institution remains at the forefront of the ever-evolving banking industry. With Best Wishes, Ajay Kumar Srivastava MD & CEO Date: 16.12.2024 Shri Joydeep Dutta Roy Indian Overseas Bank Executive Director Central Office, 763, Anna Salai, Chennai –2 FOREWORD Dear colleagues, I am delighted to write a forward for 13th edition of Career Guide, i.e. “Career Guide 2025". In this swiftly evolving banking landscape, the abilities to adapt and stay agile are crucial. Knowledge, undoubtedly, serves as a pivotal tool to not just survive but thrive amidst these changes. Our meticulously crafted "Career Guide" serves as a guiding light, assisting our dedicated staff in navigating the complexities of modern banking practices. This guide is more than just a compendium of information, it stands as a strategic asset, empowering our workforce. In an industry characterized by continuous evolution, this guide will be an invaluable resource, providing insights and strategies to effectively navigate the dynamic banking landscape. It is imperative that each member of our staff embraces the "Career Guide" as a roadmap for professional growth. Let us collectively embark on this journey of continuous learning and growth, recognizing that a knowledgeable and updated workforce serves as the most valuable asset for our institution in the ever evolving banking industry. Their expertise and awareness enable the delivery of superior service and act as a driving force in propelling the institution forward. I extend my appreciation to the Staff College & Staff training centres for their relentless efforts in bringing out the latest edition of Career guide. With Best Wishes, Joydeep Dutta Roy Executive Director Date: 16.12.2024 Shri Dhanraj T. Indian Overseas Bank Executive Director Central Office, 763, Anna Salai, Chennai –2 FOREWORD Dear IOBians, It gives me immense pleasure to write foreword for the "Career Guide 2025", an invaluable resource designed for modern banking professionals. I am sure that all our career aspirants and staff in general, would be immensely benefitted by this e- book. In today's dynamic banking requirements, staying updated is paramount. The "Career Guide 2025" has been thoughtfully curated with latest information and changes in the banking eco system. Also, in its current format, it provides flexibility to access, toggle, and carry effortlessly thereby ensuring that staff members can refer to it anytime, anywhere. It will facilitate and prepare our team for the industry's challenges and opportunities besides helping to prepare well for the promotion exams. I encourage each staff member to make full use of the "Career Guide 2025" and stay ahead of the competition. I extend my sincere appreciation to the Principal and the dedicated team at Staff College & staff training centres for their commitment in bringing out this valuable guide at an appropriate time. Best wishes & happy learning, With Best Wishes, Dhanraj T. Executive Director Date: 16.12.2024 Shri Dillip Kumar Barik Indian Overseas Bank General Manager - HR Central Office, 763, Anna Salai, Chennai –2 Dear IOBians, FOREWORD I am pleased to pen the foreword for "Career Guide - 2025" our annual publication, for the benefit of our esteemed staff members. At our Bank, we prioritize fostering an environment that thrives on knowledge exchange and ongoing skill enhancement. This comprehensive guide serves as a repository of the latest changes in the policy, procedures and products of our Bank. It stands as a centralized compendium of the guidelines, policy and product at a single place. Embracing this guide will significantly empower each staff member, enriching their proficiency across various banking dimensions. I strongly encourage every member of our staff to give this guide the dedicated attention it warrants and seamlessly integrate it into their professional journey. The importance of knowledge cannot be overstated; its relevance lies in its ability to adapt and evolve. It is crucial for our staff to acknowledge the paramount importance of continually updating their knowledge base. Engaging with resources such as the "Career Guide - 2025" enables our staff members to enhance their expertise, ensuring they remain adept and proactive in navigating the ever-evolving banking landscape. I place on record my whole hearted appreciation to Mrs. Regimol B G, Principal & faculties from training system for their commendable contribution for completion of 13th Edition of “Career Guide-2025”. With Best Wishes, Dillip Kumar Barik General Manager (HR) Date: 16.12.2024 Smt. Regimol B.G. Indian Overseas Bank AGM & Principal Staff College, 230/7A Jawaharlal, Nehru Road, Thirumangalam, Chennai -40 Dear IOBians, Message from Principal It is with great pride and enthusiasm that I introduce the 13th Edition of the “Career Guide”, a significant milestone for us at the Staff College & STCs. As the Principal, witnessing the continuous publication of this guide for the past five years since its relaunching has been truly gratifying. This edition, a testament to our commitment and consistent improvement, stands as an exemplar of our evolution and dedication toward empowering our staff. Notably, this edition retains the hallmark features of being an e-Book, ensuring accessibility and ease of reference for our esteemed employees. One of the noteworthy facets of this guide is that it embodies the collective efforts of our talented team. From conceptualization to completion, the guide remains a product of entirely in-house writing and compilation. This represents the devotion of our Staff College & STC's in nurturing internal expertise and sharing knowledge cultivated within our institution. Our journey in crafting the “Career Guide 2025” mirrors our unwavering determination to provide reliable, and user friendly resources to our staff. We aim not only to inform but to inspire and guide our colleagues in their professional endeavours. As we embark on this new chapter with the 13th Edition, I encourage every member of our esteemed Indian Overseas Bank family to embrace this guide as a compass for their career progression and development. At this juncture I would like to appreciate and thank all faculties who have been associated and contributed their might in the above initiatives, who has taken special efforts in bringing out this edition of “Career Guide 2025”. Certainly, I would like to thank the HR department and all executives, for their inspiration and continuous support in all our endeavours. With Best Wishes, Regimol B G, Principal, Staff College Date: 16.12.2024  PREFACE Introducing the 13th edition of our esteemed Career Guide, "Career Guide 2025," stands as a remarkable achievement for our team of faculty members. Building on the success of its predecessor, Career Guide 2024, we take immense pride in presenting this updated edition. Each module culminates with a significant addition - the final chapter features crucial circulars issued by respective departments during the last one year. These circulars are accompanied by summaries and hyperlinks, enriching the guide with up-to-date content for easy reference. This edition maintains hallmark features, offering an extensive collection of IOB and RBI circulars equipped with user-friendly hyperlinks and a Bookmark option for an enhanced learning experience. It's noteworthy that this edition is updated till November 2024. The relentless dedication and collective effort of faculty members from the 12 STCs and Staff College have been instrumental in bringing this guide to fruition. We extend our heartfelt appreciation to each contributor for their valuable input. Should you encounter any errors or require corrections, we encourage you to contact us at [email protected]. Your feedback is invaluable. We extend our sincere thanks to the AGM & Principal of Staff College, Chennai, and the HR team for their unwavering support, belief and encouragement. Their continuous guidance and motivation have been instrumental, hastening the publication of this edition. From IOB Faculty Fraternity Date: 16/12/2024 (Compiled by Sreekanth Tanneru (SM), Staff College)  LIST OF THE FACULTY MEMBERS S.No. Name Roll No. Grade STC Name 1 Souhardra K Purohit 48023 SM(IV) Staff College, Chennai 2 Aritra Chakraborty 48089 SM(IV) Staff College, Chennai 3 Narasinga Moorthy J 49510 SM(IV) Staff College, Chennai 4 Sreekanth Tanneru 49603 MM(III) Staff College, Chennai 5 Aditya Kumar Mishra 49554 MM(III) Staff College, Chennai 6 Falguni Margadarshi 38873 MM(III) S.T.C. Bhubaneswar 7 Somnath Sinhababu 50195 MM(III) S.T.C. Bhubaneswar 8 Samrat Saha 49443 MM(III) S.T.C. Chennai II 9 Gowri Mohan G 49604 MM(III) S.T.C. Chennai II 10 Md Ehshan Ahmad 48407 MM(III) S.T.C. Coimbatore 11 Indumathi K 49073 MM(III) S.T.C. Coimbatore 12 Jegadesh P 48577 SM(IV) S.T.C. Delhi 13 Punkaj Kumar 50033 MM(III) S.T.C. Delhi 14 Mohana Ranganatha Nanda M P 49328 MM(III) S.T.C. Hyderabad 15 Rakesh Chowdary Ghanta 59199 MM(III) S.T.C. Hyderabad 16 Ajay Kumar 48551 SM(IV) S.T.C. Kolkata I 17 Alok Tripathi 48402 MM(III) S.T.C. Kolkata I 18 Ajit Keshri 48043 MM(III) S.T.C. Lucknow 19 Anshuman Jha 50282 MM(III) S.T.C. Lucknow 20 Deepak Kumar 50139 MM(III) S.T.C. Madurai 21 Abhishek Sen Chowdhury 49950 MM(III) S.T.C. Madurai 22 Abhishek Anand 48436 MM(III) S.T.C. Mangalore 23 Bikash Kumar Singh 52103 MM(III) S.T.C. Mangalore 24 Dharamjeet Kaur Neogi 38095 SM(IV) S.T.C. Mumbai 25 Biswajit Sahu 49055 MM(III) S.T.C. Mumbai 26 Sakthi Ganesh J 38516 MM(III) S.T.C. Tanjore 27 Deepak Sayana 59867 MM(III) S.T.C. Tanjore 28 Bharathi Manivannan S 49133 MM(III) S.T.C. Trivandrum 29 Vivekanandan B 58573 MM(II) S.T.C. Trivandrum  Table of Contents MODULE-A GENERAL BANKING............................................................................ 1 1. POLICY ON KYC/AML/CFT............................................................................................................................. 2 2. CENTRAL KYC RECORDS REGISTRY(CKYCR)............................................................................................... 30 3.GENERAL BANKING - POINTS....................................................................................................................... 33 4.RIGHTS OF BANKER........................................................................................................................................ 42 5.NEGOTIABLE INSTRUMENTS........................................................................................................................... 44 6.NOMINATION................................................................................................................................................. 52 7.SETTLEMENT OF CLAIMS................................................................................................................................. 56 8.SPECIAL TYPES OF CUSTOMERS.................................................................................................................... 60 9.DORMANT ACCOUNT, INOPERATIVE ACCOUNTS AND UNCLAIMED BALANCES.................................... 65 10.THE DEPOSITOR EDUCATION AND AWARENESS FUND SCHEME, 2014 (DEAF SCHEME)......................... 67 11. DEPOSIT INSURANCE AND CREDIT GUARANTEE CORPORATION (DICGC)............................................ 68 12.CUSTOMER SERVICE.................................................................................................................................... 70 13. POLICY FOR GRIEVANCE REDRESSAL....................................................................................................... 79 14. RIGHT TO INFORMATION ACT 2005........................................................................................................... 84 15. INTEGRATED OMBUDSMAN SCHEME 2021............................................................................................... 86 16. INTERNAL OMBUDSMAN SCHEME............................................................................................................. 90 17.GARNISHEE ORDER...................................................................................................................................... 93 18. ATTACHMENT ORDER.................................................................................................................................. 95 19.DETECTION AND IMPOUNDING OF COUNTERFEIT BANK NOTES.............................................................. 96 20.INTER-BRANCH CBS TRANSACTIONS....................................................................................................... 101 21.DOCUMENTS HANDLING AND RETENTION POLICY................................................................................. 103 22.INCOME TAX.............................................................................................................................................. 110 23.TAX DEDUCTION AT SOURCE (TDS).......................................................................................................... 113 24.GOODS AND SERVICE TAX....................................................................................................................... 117 25. CERSAI....................................................................................................................................................... 121 26. COMPENSATION POLICY......................................................................................................................... 124 27.SIGNIFICANT ACCOUNTING POLICY OF OUR BANK.............................................................................. 132  28.SECURITY ARRANGEMENTS IN BANK........................................................................................................ 136 29.MANDATE MANAGEMENT SYSTEM........................................................................................................... 141 30.FOREIGN CONTRIBUTION (REGULATION) ACT, 2010.............................................................................. 145 31.VIDEO BASED LIFE CERTIFICATE................................................................................................................ 149 32. CURRENCY MANAGEMENT...................................................................................................................... 150 33. PSB ALLIANCE –DOORSTEP BANKING SERVICES.................................................................................... 153 34. CONSUMER PROTECTION ACT (COPRA)................................................................................................ 154 35. CUSTOMER SERVICE DEPARTMENT – IMPORTANT GUIDELINES.............................................................. 155 36. CLEANLINESS OF BRANCHES/OFFICES.................................................................................................... 156 37. TAX COMPLIANCE AND PAYMENT CELL................................................................................................. 157 38. CIRCULARS ISSUED BY BOD..................................................................................................................... 159 MODULE-B DEPOSITS................................................................................. 161 1. SAVINGS BANK ACCOUNT........................................................................................................................ 162 2. Revamping Savings Account Schemes.................................................................................................. 171 3. CURRENT AND CASH CREDIT ACCOUNTS................................................................................................ 173 4.CAPITAL GAIN ACCOUNT SCHEME 1988.................................................................................................. 181 5. CASA SCHEMES.......................................................................................................................................... 186 6. TERM DEPOSITS............................................................................................................................................ 233 7. TERM DEPOSITS SCHEMES........................................................................................................................... 244 8. IOB GOLD DEPOSIT SCHEME...................................................................................................................... 254 9. GOLD MONETISATION SCHEME................................................................................................................. 257 10. REFERENCE MAJOR CIRCULAR................................................................................................................ 276 MODULE-C ADVANCES................................................................................... 282 Part 1- General Advances............................................................................................................................ 282 1.LOAN POLICY DOCUMENT (2024)................................................................................................................. 283 2. DELEGATED POWERS (FINANCIAL)............................................................................................................... 324 PROFIT AND LOSS ACCOUNT......................................................................................................................... 356 BALANCE SHEET.............................................................................................................................................. 359 ASSESSMENT OF WORKING CAPITAL............................................................................................................ 388 VARIOUS METHODS FOR ASSESSMENT OF WORKING CAPITAL.................................................................. 396 NON FUND BASED LIMIT AS WORKING CAPITAL LIMIT................................................................................ 402  CONCEPT ON SOURCE OF MARGIN............................................................................................................. 404 TERM LOAN ANALYSIS.................................................................................................................................... 405 DEBT SERVICE COVERAGE RATIO.................................................................................................................. 409 PART 2 - MSME..................................................................................................... 449 1. LENDING TO MSME, POLICY AND GUIDELINES........................................................................................ 450 2. TReDS........................................................................................................................................................... 463 3. MSME POLICY OF OUR BANK.................................................................................................................... 466 4. MSME SCHEMES.......................................................................................................................................... 473 5. CREDIT GUARANTEE SCHEMES................................................................................................................... 483 IMPORTANT CIRCULARS ON MSME AND CREDIT GUARANTEE SCHEMES.................................................. 520 PART 3 – RETAIL.................................................................................................... 522 PERSONAL LOAN............................................................................................................................................. 523 PERSONAL LOAN CC...................................................................................................................................... 524 PERSONAL LOAN TO LIC AGENTS.................................................................................................................. 524 IOB-AKSHAY.................................................................................................................................................... 525 SAHAYIKA........................................................................................................................................................ 525 REVERSE MORTGAGE LOAN........................................................................................................................... 526 PERSONAL LOAN TO HNI................................................................................................................................ 526 CONSUMER DURABLE LOAN.......................................................................................................................... 527 ELITE CONSUMER DURABLE LOAN................................................................................................................. 527 FESTIVAL LOAN FOR IOB-PENSIONERS.......................................................................................................... 527 PENSIONERS’ LOAN SCHEME......................................................................................................................... 528 LAP -LOAN AGAINST MORTGAGE OF PROPERTY......................................................................................... 528 SUBHA GRUHA –HOUSING LOAN SCHEME................................................................................................... 530 SUBHA GRUHA PRE APPROVED HOME LOAN............................................................................................... 531 SUBHA GRUHA HOUSING LOAN-(CASH CREDIT)......................................................................................... 531 SUBHA GRUHA TOP UP LOAN........................................................................................................................ 532 SUBHAGRUHA GEN NEXT HOUSING LOAN................................................................................................... 532 NRI HOME LOAN SCHEME.............................................................................................................................. 533 NRI PRE APPROVED HOME LOAN.................................................................................................................. 535 NRI Housing TOP UP LOAN............................................................................................................................. 535  HOME IMPROVEMENT SCHEME..................................................................................................................... 536 HOME DECOR SCHEME.................................................................................................................................. 536 IOB GHARONDA............................................................................................................................................. 537 IOB HOME ADVANTAGE................................................................................................................................ 537 Retail loans through online PSB Loans......................................................................................................... 538 PRIORITY SECTOR STATUS............................................................................................................................... 539 IOB HL SURYA SCHEME................................................................................................................................... 539 VEHICLE LOAN................................................................................................................................................ 541 VEHICLE LOAN AGAINST DEPOSIT................................................................................................................. 542 VIDYA JYOTHI................................................................................................................................................. 542 MODIFICATIONS IN EDUCATION LOAN GUIDELINES................................................................................... 544 VIDYA SURAKSHA........................................................................................................................................... 544 IOB SCHOLAR.................................................................................................................................................. 545 IOB VIDYA SHREST.......................................................................................................................................... 545 IOB CAREER DREAM....................................................................................................................................... 546 IOB PASSION................................................................................................................................................... 546 SKILL DEVELOPMENTS LOANS........................................................................................................................ 547 EDUCATIONAL LOAN SCHEMES (GENERAL GUIDELINES)............................................................................ 547 EDUCATION LOAN SUBSIDY........................................................................................................................... 548 WEST BENGAL STUDENT CREDIT CARD SCHEME........................................................................................... 548 LIQUIRENT........................................................................................................................................................ 549 Pre-Approved Personal Loan Instant........................................................................................................... 551 PERSONAL LOAN TOP UP................................................................................................................................ 552 PART 4 - RURAL CREDIT & GOVT SPONSORED SCHEMES................................... 561 1. AGRICULTURE SCHEMES............................................................................................................................. 562 2. AGRI ADVANCES – IMP POINTS................................................................................................................ 585 3. PMFBY.......................................................................................................................................................... 587 4. JOINT LIABILITY GROUP(JLG)..................................................................................................................... 589 5. SELF HELP GROUP [SHG]............................................................................................................................. 589 6. PMEGP......................................................................................................................................................... 594 7. NRLM............................................................................................................................................................ 598  8. DRI................................................................................................................................................................ 606 9. SRMS............................................................................................................................................................ 607 10. GOVERNMENT SPONSORED SCHEMES.................................................................................................... 608 11.FINANCIAL INCLUSION - INITIATIVE OF IOB............................................................................................ 610 12.BC/BF MANAGEMENT............................................................................................................................... 614 13. IMP CIRCULARS ISSUED BY GOVERNMENT ACCOUNTS DEPARTMENT................................................. 625 14. IMPORTANT CIRCULARS ISSUED BY PC - AGRI....................................................................................... 626 CREDIT MONITORING, COMPLIANCE, AUDIT & INSPECTION............................ 627 CREDIT COMPLIANCE AUDIT (CCA).............................................................................................................. 635 COMPLETE AUTOMATION OF INCOME RECOGNITION, ASSET CLASSIFICATION AND PROVISIONING.. 637 RED FLAGGED ACCOUNT (RFA).................................................................................................................... 638 OFFSITE CONTROL AND SURVEILLANCE (OCAS).......................................................................................... 640 OMU- PROBE................................................................................................................................................... 646 EFFECTIVENESS OF RISK BASED INTERNAL AUDIT (RBIA) OF BRANCHES..................................................... 647 DYNAMIC RISK ASSESSMENT......................................................................................................................... 648 IFCOFR............................................................................................................................................................. 650 NPA RECOVERY, REVIVAL & RESTRUCTURING.................................................... 665 Mechanism for Identification and Classification of Willful Defaulters...................................................... 722 MODULE-F............................................................................................................ 730 OTHER IMPORTANT TOPICS................................................................................. 730 STAFF MATTERS................................................................................................................................................... 731 COMPANIES ACT 2013...................................................................................................................................... 736 PSBS- REFORMS AGENDA-EASE- ENHANCED ACCESS & SERVICE EXCELLENCE.......................................... 746 STAFF ACCOUNTABILITY POLICY 2022............................................................................................................. 751 LETTER OF GUARANTEE...................................................................................................................................... 759 Hybrid eBG (HeBG)........................................................................................................................................... 764 NATIONAL SCHEDULED CASTES FINANCE AND DEVELOPMENT CORPORATION (NSFDC)........................... 765 REGISTRATION OF CHARGE CREATED ON ASSET OF A COMPANY................................................................ 768 VALUATION OF LAND AND BUILDING.............................................................................................................. 780 OTHER IMPORTANT POINTS............................................................................................................................... 794 GIST OF IMPORTANT CIRCULARS ISSUED BY FINANCIAL INCLUSION DEPARTMENT...................................... 801 MODULE-G........................................................................................................... 802 FOREX.................................................................................................................. 802 KYC/AML......................................................................................................................................................... 803 FOREIGN EXCHANGE - SOME POINTS.......................................................................................................... 810 FOREIGN CURRENCY DEPOSIT ACCOUNTS - EEFC, RFC, RFC(D), DDA...................................................... 820 FOREIGN CURRENCY(NON-RESIDENT) ACCOUNTS (BANKS) SCHEME –FCNR(B) ACCOUTS................... 827 FEDAI RULES..................................................................................................................................................... 832 EXPORT OF GOODS AND SERVICES.............................................................................................................. 838 IMPORT OF GOODS AND SERVICES AND MERCHANTING TRADE.............................................................. 849 EXPORT CREDIT............................................................................................................................................... 868 UNIFORM CUSTOMS AND PRACTICE FOR DOCUMENTARY CREDIT (UCPDC 600).................................... 876 INCOTERMS..................................................................................................................................................... 884 COMPOUNDING OF CONTRAVENTIONS UNDER FEMA, 1999..................................................................... 896 Foreign Trade Policy (FTP) – 2023 HIGHLIGHTS............................................................................................ 898 FOREIGN EXCHANGE EXPOSURE LIMITS OF AUTHORISED DEALERS........................................................... 904 IMPORTANT DEFINITION................................................................................................................................. 907 DERIVATIVES.................................................................................................................................................... 911 GIST OF IMPORTANT CIRCULARS ISSUED BY TREASURY DEPARTMENT........................................................ 916 MODULE-H TREASURY OPERATIONS & RISK MANAGEMENT............... 942 1. CERTIFICATE OF DEPOSIT (CD).................................................................................................................. 943 2. COMMERCIAL PAPER(CP)......................................................................................................................... 946 3. MARGINAL COST OF FUNDS BASED LENDING RATE (MCLR)................................................................... 949 4. EXTERNAL BENCHMARK BASED LENDING AND REPO LINKED LENDING RATE (RLLR)............................. 956 5. TREASURY OPERATIONS............................................................................................................................. 959 6. RISK MANAGEMENT IN BANKS..................................................................................................................... 986 7. POLICY ON FRAUD RISK MANAGEMENT & FRAUD INVESTIGATION FUNCTION -2023............................ 1005 8. INTERNAL RATING OF BORROWAL ACCOUTS – ICON RATING................................................................. 1014 9. RISK ASSESSMENT MODEL(RAM)................................................................................................................. 1020 10. GIST OF IMPORTANT CIRCULARS ISSUED BY RISK MANAGEMENT DEPARTMENT................................... 1026 11. GIST OF IMPORTANT CIRCULARS ISSUED BY FRAUD RISK MANAGEMENT CELL..................................... 1029 MODULE-I PARA BANKING............................................................................. 1031 1. COLLECTION OF CHEQUE............................................................................................................... 1032 2. SAFE DEPOSIT LOCKER..................................................................................................................... 1038 3. TERM & ACCIDENTAL INSURANCE.................................................................................................. 1042 4. HEALTH INSURANCE PRODUCTS..................................................................................................... 1045 5. GENERAL INSURANCE PRODUCTS.................................................................................................. 1048 6. MUTUAL FUNDS, DEMAT & IPO........................................................................................................ 1053 7. LIC..................................................................................................................................................... 1057 8. PUBLIC PROVIDENT FUND................................................................................................................ 1059 9. SUKANYA SAMRIDDHI SCHEME...................................................................................................... 1061 10. SENIOR CITIZENS’ SAVINGS SCHEME,2023.................................................................................... 1063 11. SOVEREIGN GOLD BOND SCHEME................................................................................................ 1065 12. OTHER NATIONAL SAVINGS SCHEMES........................................................................................... 1067 13. ATAL PENSION YOJANA (APY)....................................................................................................... 1069 14. MAHILA SAMMAN SAVINGS CERTIFICATE – 2023......................................................................... 1071 15. NATIONAL PENSION SYSTEM (NPS)................................................................................................ 1072 16. PENSION ACCOUNTS MAINTENANCE & AGENCY COMMISSION............................................... 1077 17. CIRCULARS RELATED TO PARA BANKING & MDD......................................................................... 1081 18. GIST OF IMPORTANT CIRCULARS ISSUED BY CSSD [Issued from Jan 2024 - Nov 2024]............ 1082 MODULE-J DIGITAL BANKING......................................................................... 1086 1. IOB’s CREDIT CARD SCHEME................................................................................................................... 1087 2. DEBIT CARD.............................................................................................................................................. 1100 3. FASTag....................................................................................................................................................... 1115 4. RTGS TRANSACTIONS............................................................................................................................... 1118 5. NEFT TRANSACTIONS................................................................................................................................ 1122 6. IOB MOBILE BANKING.............................................................................................................................. 1136 7. INTERNET BANKING................................................................................................................................... 1140 8. Unified Payment Interface Quick Response Code.............................................................................. 1143 9. IOB Pay...................................................................................................................................................... 1147 10. BHIM lOB UPI.......................................................................................................................................... 1150 11. IOB BHIM AADHAAR.............................................................................................................................. 1153  12. POINT OF SALE (PoS).............................................................................................................................. 1155 13. BHARAT BILL PAYMENT SYSTEM (BBPS).................................................................................................. 1158 14. Gist of Important Circulars issued by Digital Banking Department................................................. 1159 MODULE-K IMP RBI CIRCULARS...................................................................... 1164 DISCLAIMER “Even though we have taken best efforts to incorporate the latest guidelines, we advise users to refer to Book of Instructions/ circulars issued from time to time and be guided accordingly in the discharge of their duties. Errors, if any, may be brought to our notice so that they can be corrected in the subsequent editions”.  Attention If you are not able to open the circular through link provided in this booklet, kindly go through the necessary steps, 1. If you are opening the link through staff login available at our internet website- www.iob.in, (web address - https://www.iob.in/Staff-and-ex-staff) with the help of laptop or mobile. Hyper link will be https://portal.iob.in/RecordCenter/Circulars/IOB%20INSTA%20PENSION%20COVID19%20R ELIEF%20LOAN.pdf 2. If you are opening a circular at branch with our intranet site (office desktop), Hyperlink will be https://online.iob.in/RecordCenter/Circulars/IOB%20INSTA%20PENSION%20COVID19%20R ELIEF%20LOAN.pdf Kindly make changes accordingly in the hyperlink as mentioned in red link from wherever you are trying to open the circular, either from intranet (office desktop) or internet (mobile or laptop at home).  Back to INDEX MODULE-A General Banking Prepared by STC – Trivandrum & Vetted by STC – Mumbai Page | 1  Back to INDEX 1. POLICY ON KYC/AML/CFT INTRODUCTION The policy on Know your Customer (KYC) norms/ Anti Money Laundering (AML) standards/Combating of Financing of terrorism (CFT) and obligations of the bank under various provisions of Prevention of Money Laundering Act was reviewed and approved by our Bank Board on 11.10.2023 on RBI Master Directions dt. 28.04.2023,04.05.2023,17.10.2023. The reviewed policy is valid upto 31.10.2026. Subsequently, addendum to KYC/AML/CFT policy was made on 27.11.2023. RBI exercise of the powers conferred by Sections 35A of the Banking Regulation Act, 1949, the Banking Regulation Act (AACS), 1949, read with Section 56 of the Act ibid, Sections 45JA, 45K and 45L of the Reserve Bank of India Act, 1934, Section 10 (2) read with Section 18 of Payment and Settlement Systems Act 2007 (Act 51 of 2007), Section 11(1) of the Foreign Exchange Management Act, 1999, Rule 9(14) of Prevention of Money-Laundering (Maintenance of Records) Rules, 2005 and all other laws enabling the Reserve Bank in this regard, the Reserve Bank of India being satisfied that it is necessary and expedient in the public interest to do so, hereby issues the Directions. These norms apply to every entity regulated by RBI & to all the branches home as well as overseas. In case of difference between RBI & Home/Host country regulations, more stringent regulations of the two shall be adopted. OBJECTIVES OF KYC/AML/CFT To prevent banks and other financial institutions from being used as a channel for Money Laundering (ML)/ Terrorist Financing (TF) and to ensure the integrity and stability of the financial system. To prevent bank from being used, intentionally or unintentionally, by criminal elements for money laundering or financing of terrorism. Guard against criminals, fraudsters and terrorists making use of the banking channels for their nefarious activities. To understand the level of risk each account/transaction bears and the steps to be taken to manage them. To know and understand its customers fully in terms of identity, location and activity to the extent of establishing the correctness/genuineness of the credentials for extending better Customer Service. To implement the recommendations of Financial Action Task Force on Anti Money Laundering standards and on Combating Financing of Terrorism and the paper issued on Customer Due Diligence for the bank by Basel Committee on Banking Supervision. The efforts on Money Laundering (ML)/ Terrorist Financing (TF) are continuously being made both internationally (through FATF) and nationally (through Prevention of Money- Laundering Act, 2002 and Prevention of Money- Laundering (Maintenance of Records) Rules, 2005), by way of prescribing various rules and regulations. Page | 2  Back to INDEX DEFINITIONS: “Customer” means a person who is engaged in a financial transaction or activity with a Regulated Entity (RE) and includes a person on whose behalf the person who is engaged in the transaction or activity, is acting. “Walk-in Customer” means a person who does not have an account-based relationship with the RE, but undertakes transactions with the RE. “Customer Due Diligence” (CDD) means identifying and verifying the customer and the beneficial owner using reliable and independent sources of Identification. Explanation - The CDD, at the time of commencement of an account-based relationship or while carrying out occasional transaction of an amount equal to or exceeding rupees fifty thousand, whether conducted as a single transaction or several transactions that appear to be connected, or any International money transfer operations, shall include: a. Identification of the customer, verification of their Identity using reliable and Independent sources of Identification, obtaining Information on the purpose, and Intended nature of the business relationship, where applicable. b. Taking reasonable steps to understand the nature of the customer's business, and its ownership and control. c. Determining whether a customer is acting on behalf of a beneficial owner and identifying the beneficial owner and taking all steps to verify the identity of the beneficial owner, using reliable and independent sources of identification. “Customer identification” means undertaking the process of CDD. “KYC Templates” means templates prepared to facilitate collating and reporting the KYC data to the CKYCR, for individuals and legal entities. “Non-face-to-face customers” means customers who open accounts without visiting the branch/offices of the REs or meeting the officials of REs. “On-going Due Diligence” means regular monitoring of transactions in accounts to ensure that they are consistent with the customers’ profile and source of funds. “Periodic Updation” means steps taken to ensure that documents, data or information collected under the CDD process is kept up-to-date and relevant by undertaking reviews of existing records at periodicity prescribed by the Reserve Bank. “Person” has the same meaning assigned in the Act and includes: a. an individual, b. a Hindu undivided family, c. a company, d. a firm, e. an association of persons or a body of individuals, whether incorporated or not, f. every artificial juridical person, not falling within any one of the above persons (a to e), and g. any agency, office or branch owned or controlled by any of the above persons (a to f). “Politically Exposed Persons” (PEPs) are individuals who are or have been entrusted with prominent public functions by a foreign country, including the Heads of Page | 3  Back to INDEX States/Governments, senior politicians, senior government or judicial or military officers, senior executives of state-owned corporations and important political party officials. “Transaction” means a purchase, sale, loan, pledge, gift, transfer, delivery or the arrangement thereof and includes: a. opening of an account; b. deposit, withdrawal, exchange or transfer of funds in whatever currency, whether in cash or by cheque, payment order or other instruments or by electronic or other non-physical means; c. the use of a safety deposit box or any other form of safe deposit; d. entering into any fiduciary relationship; e. any payment made or received, in whole or in part, for any contractual or other legal obligation; or f. establishing or creating a legal person or legal arrangement. “Suspicious transaction” means a “transaction” as defined below, including an attempted transaction, whether or not made in cash, which, to a person acting in good faith: a. gives rise to a reasonable ground of suspicion that it may involve proceeds of an offence specified in the Schedule to the Act, regardless of the value involved; or b. appears to be made in circumstances of unusual or unjustified complexity; or c. appears to not have economic rationale or bona-fide purpose; or d. gives rise to a reasonable ground of suspicion that it may involve financing of the activities relating to terrorism. Transaction involving financing of the activities relating to terrorism includes transaction involving funds suspected to be linked or related to, or to be used for terrorism, terrorist acts or by a terrorist, terrorist organization or those who finance or are attempting to finance terrorism. “Wire transfer” related definitions: Wire transfer: Wire transfer refers to any transaction carried out on behalf of an originator through a financial institution by electronic means with a view to making an amount of funds available to a beneficiary at a beneficiary financial institution, irrespective of whether the originator and the beneficiary are the same person. Cross-border wire transfer: Cross-border wire transfer refers to any wire transfer where the ordering financial institution and beneficiary financial institution are located in different countries. This term also refers to any chain of wire transfer in which at least one of the financial institutions involved is located in a different country. Domestic wire transfer: Domestic wire transfer refers to any wire transfer where the ordering financial institution and beneficiary financial institution are located in India. This term, therefore, refers to any chain of wire transfer that takes place entirely within the borders of India, even though the system used to transfer the payment message may be located in another country. Page | 4  Back to INDEX Batch transfer: Batch transfer is a transfer comprised of a number of individual wire transfers that are being sent to the same financial institutions but may/may not be ultimately intended for different persons Straight-through Processing: Straight-through processing refers to payment transactions that are conducted electronically without the need for manual intervention. Serial Payment: Serial Payment refers to a direct sequential chain of payment where the wire transfer and accompanying payment message travel together from the ordering financial institution to the beneficiary financial institution directly or through one or more intermediary financial institutions (e.g., correspondent banks). Cover Payment: Cover Payment refers to a wire transfer that combines a payment message sent directly by the ordering financial institution to the beneficiary financial institution with the routing of the funding instruction (the cover) from the ordering financial institution to the beneficiary financial institution through one or more intermediary financial institutions Beneficial Owner (BO) Where the customer is a company, the beneficial owner is the natural person(s), who, whether acting alone or together, or through one or more juridical persons, has/have a controlling ownership interest or who exercise control through other means.  “Controlling ownership interest” means ownership of/entitlement to more than 10 percent of the shares or capital or profits of the company.  “Control” shall include the right to appoint majority of the directors or to control the management or policy decisions including by virtue of their shareholding or management rights or shareholders agreements or voting agreements. Where the customer is a partnership firm, the beneficial owner is the natural person(s), who, whether acting alone or together, or through one or more juridical person, has/have ownership of/entitlement to more than 10 percent of capital or profits of the partnership. Where the customer is an unincorporated association or body of individuals, the beneficial owner is the natural person(s), who, whether acting alone or together, or through one or more juridical person, has/have ownership of/entitlement to more than 15 percent of the property or capital or profits of the unincorporated association or body of individuals.  Term ‘body of individuals’ includes societies. Where no natural person is identified under (a), (b) or (c) above, the beneficial owner is the relevant natural person who holds the position of senior managing official. Where the customer is a trust, the identification of beneficial owner(s) shall include identification of the author of the trust, the trustee, the beneficiaries with 10 percent or more interest in the trust and any other natural person exercising ultimate effective control over the trust through a chain of control or ownership. Certified Copy - Obtaining a certified copy by the RE shall mean comparing the copy of the proof of possession of Aadhaar number where offline verification cannot be carried Page | 5  Back to INDEX out or officially valid document so produced by the customer with the original and recording the same on the copy by the authorised officer of the RE as per the provisions contained in the Act. Provided that in case of Non-Resident Indians (NRIs) and Persons of Indian Origin (PIOs), as defined in Foreign Exchange Management (Deposit) Regulations, 2016 {FEMA 5(R)}, alternatively, the original certified copy, certified by any one of the following, may be obtained:  Authorised officials of overseas branches of Scheduled Commercial Banks registered in India,  branches of overseas banks with whom Indian banks have relationships,  Notary Public abroad,  Court Magistrate,  Judge,  Indian Embassy/Consulate General in the country where the non-resident customer resides. “Central KYC Records Registry” (CKYCR) means an entity defined under Rule 2(1) of the Rules, to receive, store, safeguard and retrieve the KYC records in digital form of a customer. “Know Your Client (KYC) Identifier” means the unique number or code assigned to a customer by the Central KYC Records Registry. “Digital KYC” means the capturing live photo of the customer and officially valid document or the proof of possession of Aadhaar, where offline verification cannot be carried out, along with the latitude and longitude of the location where such live photo is being taken by an authorised officer of the RE as per the provisions contained in the Act. “Equivalent e-document” means an electronic equivalent of a document, issued by the issuing authority of such document with its valid digital signature including documents issued to the digital locker account of the customer as per rule 9 of the Information Technology (Preservation and Retention of Information by Intermediaries Providing Digital Locker Facilities) Rules, 2016. “Non-profit organizations” (NPO) means any entity or organisation, constituted for religious or charitable purposes referred to in clause (15) of section 2 of the Income-tax Act, 1961 (43 of 1961), that is registered as a trust or a society under the Societies Registration Act, 1860 or any similar State legislation or a company registered under Section 8 of the Companies Act, 2013 (18 of 2013). “Officially Valid Document” (OVD) means 1. Passport 2. Driving licence, 3. Proof of possession of Aadhaar number 4. Voter's Identity Card issued by the Election Commission of India Page | 6  Back to INDEX 5. Job card issued by NREGA duly signed by an officer of the State Government and 6. Letter issued by the National Population Register containing details of name and address. Provided that, where the customer submits his proof of possession of Aadhaar number as an OVD, he may submit it in such form as are issued by the Unique Identification Authority of India. Where the OVD furnished by the customer does not have updated address, the following documents or the equivalent e-documents thereof shall be deemed to be OVDs for the limited purpose of proof of address:- 1. Utility bill which is not more than two months old of any service provider (electricity, telephone, post-paid mobile phone, piped gas, water bill); 2. Property or Municipal tax receipt; 3. Pension or family pension payment orders (PPOs) issued to retired employees by Government Departments or Public Sector Undertakings, if they contain the address; 4. Letter of allotment of accommodation from employer issued by State Government or Central Government Departments, statutory or regulatory bodies, public sector undertakings, scheduled commercial banks, financial institutions and listed companies and leave and licence agreements with such employers allotting official accommodation; The customer shall submit OVD with current address within a period of three months of submitting the documents specified above. Where the OVD presented by a foreign national does not contain the details of address, in such case the documents issued by the Government departments of foreign jurisdictions and letter issued by the Foreign Embassy or Mission in India shall be accepted as proof of address. A document shall be deemed to be an OVD even if there is a change in the name subsequent to its issuance provided it is supported by a marriage certificate issued by the State Government or Gazette notification, indicating such a change of name. Correspondent Banking: Correspondent banking is the provision of banking services by one bank (the “correspondent bank”) to another bank (the “respondent bank”). Respondent banks may be provided with a wide range of services, including cash management (e.g., interest-bearing accounts in a variety of currencies), international wire transfers, cheque clearing, payable- through accounts and foreign exchange services. “Common Reporting Standards” (CRS) means reporting standards set for implementation of multilateral agreement signed to automatically exchange information based on Article 6 of the Convention on Mutual Administrative Assistance in Tax Matters. “FATCA” means Foreign Account Tax Compliance Act of the United States of America (USA) which, inter alia, requires foreign financial institutions to report about financial accounts held by U.S. taxpayers or foreign entities in which U.S. taxpayers hold a Page | 7  Back to INDEX substantial ownership interest. “IGA” means Inter Governmental Agreement between the Governments of India and the USA to improve international tax compliance and to implement FATCA of the USA. “Regulated Entities” (REs) means All Scheduled Commercial Banks (SCBs)/ Regional Rural Banks (RRBs)/ Local Area Banks (LABs)/ All Primary (Urban) Co-operative Banks (UCBs) /State and Central Co- operative Banks (StCBs / CCBs) and any other entity which has been licenced under Section 22 of Banking Regulation Act, 1949, which as a group shall be referred as ‘banks’ All India Financial Institutions (AIFIs) All Non-Banking Finance Companies (NBFCs), Miscellaneous Non-Banking Companies (MNBCs) and Residuary Non-Banking Companies (RNBCs) Asset Reconstruction Companies (ARCs) All Payment System Providers (PSPs)/ System Participants (SPs) and Prepaid Payment Instrument Issuers (PPI Issuers) All authorised persons (APs) including those who are agents of Money Transfer Service Scheme (MTSS), regulated by the Regulator. “Shell Bank” means a bank that has no physical presence in the country in which it is incorporated and licensed, and which is unaffiliated with a regulated financial group that is subject to effective consolidated supervision. Physical presence means meaningful mind and management located within a country. The existence simply of a local agent or low-level staff does not constitute physical presence. “Video based Customer Identification Process (V-CIP)”: an alternate method of customer identification with facial recognition and customer due diligence by an authorised official of the RE by undertaking seamless, secure, live, informed- consent based audio-visual interaction with the customer to obtain identification information required for CDD purpose, and to ascertain the veracity of the information furnished by the customer through independent verification and maintaining audit trail of the process. Such processes complying with prescribed standards and procedures shall be treated on par with face-to-face CIP for the purpose of this Master Direction. KYC POLICY The policy shall be duly approved by the Board of Directors of Bank or any committee of the Board to which power has been delegated. Designated Director:  Designated Director of the bank shall be nominated by the Board to ensure overall compliance with the obligations imposed under Chapter IV of the PML Act and the Rules.  The name, designation and address of the Designated Director shall be communicated to the FIU-IND.  Further, the name, designation, address and contact details of the Designated Director shall also be communicated to the RBI.  In no case, the Principal Officer shall be nominated as the 'Designated Director'. Page | 8  Back to INDEX Principal Officer:  The Principal Officer is a nominated senior officer in the rank of General Manager/Deputy General Manager (HOD) of the KYC AML Department, approved by the Board, and shall be responsible for ensuring compliance, monitoring transactions, and sharing and reporting Information as required under the law/ regulations.  "Principal Officer" means an officer at the management level nominated by the RE, responsible for furnishing information as per rule 8 of PML Rules.  Alternate Principal Officer: Will act as a substitute when the notified Principal Officer is not available due to any reasons. Alternate Principal Officer shall be in the rank of Assistant General Manager/Deputy General Manager who will digitally sign the regulatory reports uploaded in FIU-IND site in the absence of Principal Officer. Managing Director & CEO shall be the competent authority for identifying Alternate Principal Officer.  The name, designation and address of the Principal Officer shall be communicated to the FIU-IND.  Further, the name, designation, address and contact details of the Principal Officer shall also be communicated to the RBI. COMPLIANCE OF KYC POLICY Bank shall ensure compliance with KYC Policy through: Principal Compliance Officer/ Alternate Compliance Officer constitutes Senior Management for the purpose of KYC compliance. KYC cell at Central Office will ensure effective implementation of KYC policies & procedures. KYC cell at Regional Offices shall ensure compliance at Regional level. Independent evaluation of the compliance functions of the banks policies and procedures, including legal and regulatory requirements shall undertaken by compliance department. Compliance with KYC/AML policy shall be verified by Inspection Department through concurrent/internal audit system. KYC Cell is to submit quarterly audit notes and compliance to the Audit Committee Executives (ACE) and Audit Committee of Board (ACB). Decision-making functions of determining compliance with KYC norms shall not be outsourced. THE KYC POLICY SHALL INCLUDE FOLLOWING FOUR KEY ELEMENTS 1. Customer Acceptance Policy 2. Risk Management 3. Customer Identification Procedures (CIP) and 4. Monitoring of Transactions Page | 9  Back to INDEX CUSTOMER ACCEPTANCE POLICY In order to establish relationship with the intending customer, comprehensive information regarding the new customer should be obtained at the initial stage. The prospective customer should be interviewed by the Branch Manager/ Officer to understand customer's intended relationship with the Bank. Branch heads/officials, in the process of establishing relationship with the customer and/or permitting opening of the account, should protect the bank from the risks of doing business with any individual or entity whose identity cannot be determined or who refuses to provide information, or who have provided information that contains significant inconsistencies which cannot be resolved after due investigation. Branches should ensure that adoption of customer acceptance policy and its implementation shall not become too restrictive, which result in denial of banking facility to the members of the general public, especially to those, who are financially or socially disadvantaged. Letter of Thanks should be sent to the Customers at the address declared in Account Opening Form /KYC Document submitted as address proof to ensure the correctness of Address. It is to be ensured that: No account is opened or maintained in anonymous or fictitious / benami name i.e. branches should not open any account on behalf of person whose identity have not been disclosed or cannot be verified. No transaction or account-based relationship is undertaken without following the CDD procedure. The bank shall consider filing an STR, if necessary, when it is unable to comply with the relevant CDD measures in relation to the customer. The mandatory information to be sought for KYC purpose while opening an account and during the periodic Updation, is specified. Optional/additional information, where such information requirement has not been specified in the internal KYC Policy of the bank, is obtained with the explicit consent of the customer after the account is opened. No account is to be opened where the Bank is unable to apply appropriate CDD measures, either due to non-cooperation of the customer or non-reliability of the documents/information furnished by the customer. The branch may also consider closing an existing account under similar circumstances. It is, however, necessary to have suitable built in safeguards to avoid harassment of the customer. For example, decision by the branch to close an account in such cases should be taken at Regional Office level after giving due notice to the customer explaining the reasons for such a decision. The bank shall consider filing an STR, if necessary, when it is unable to comply with the relevant CDD measures in relation to the customer. Branches shall apply the CDD procedure and each customer should be allotted with Unique Customer Identification code (UCIC). If an existing KYC compliant customer of a Bank desires to open another account, there shall be no need for a fresh CDD exercise. CDD Procedure is to be followed for all the joint account holders, while opening a joint account. Circumstances in which, a customer is permitted to act on behalf of another person/entity, should be clearly spelt out in conformity with the established law and Page | 10  Back to INDEX practice of banking as there could be occasions when an account is operated by a mandate holder or where an account is opened by an intermediary in fiduciary capacity. Suitable system is put in place to ensure that the identity of the customer does not match with any person or entity, whose name appears in the sanctions lists circulated by Reserve Bank of India. Where Permanent Account Number (PAN) or equivalent e-document thereof is obtained, the same shall be verified from the verification facility of the issuing authority. Where an equivalent e-document is obtained from the customer, Bank shall verify the digital signature as per the provisions of the Information Technology Act, 2000 (21 of 2000). Where Goods and Services Tax (GST) details are available, the GST number shall be verified from the search/verification facility of the issuing authority. Where Bank forms a suspicion of money laundering or terrorist financing, and it reasonably believes that performing the CDD process will tip-off the customer, it shall not pursue the CDD process, and instead file an STR with FIU-IND. RISK MANAGEMENT Customers are categorised as low, medium and high-risk category, based on the assessment and risk perception. Risk categorisation shall be undertaken based on parameters such as:  customer's identity,  social/financial status,  nature of business activity.  Information about the clients' business and  their location etc.  geographical risk covering customers as well as transactions,  type of products/services offered, delivery channel used for delivery of products/services,  types of transaction undertaken cash, cheque/monetary instruments, wire transfers, forex transactions, etc. Risk Parameters: IBA core group on KYC/AML has suggested following parameters for to determine the profile & risk category of customers: Customer constitution- Individual, Proprietorship, Partnership, private Ltd. Business Segment- Retail, Corporate etc. Nationality/country of residence- Resident, NRI/PIO/OCI, Foreigner Product subscription- salary account, NRI Products etc. Economic Profile- HNI, Public Ltd. Company etc. Account Status- active, inactive & inoperative Page | 11  Back to INDEX Account vintage- less than six months old etc. Presence in regulatory/negative/PEP/defaulters/Fraudsters List Suspicious Transaction Report filed for the customer. Location of the customer Other parameters like source of funds, occupation, purpose of account opening, nature of business, mode of operation, credit rating etc. can also be used in addition of the above parameters. Bank shall adopt all or majority of these parameters based on availability of data. RIP ONE: LOW RISK Individuals and entities whose source of income can be easily identified and in whose accounts transactions by and large conform to the known profile shall be categorised under RIP-One Examples: Salaried employees whose salary structures are well defined. People belonging to lower economic strata of the society where accounts reflect small balance and low turn over Government departments and government owned companies Regulatory and Statutory bodies etc. NPOs/NGOs promoted by United Nations or its agencies. RIP TWO: MEDIUM RISK Customers who are likely to pose a higher than average risk to the bank should be categorized as medium risk customers. For this category, higher due diligence is required, which includes customer's background, nature and location of activity, country of origin, source of funds and his/her client profile, etc. besides proper identification. The Medium Risk customers includes Individuals and entities whose accounts reflect large volume of turnover such as: Real estate people, auto consultants, interior decorators, share brokers wholesalers, Retail shops, Blind and Pardanashin women, Dealers Service providers. RIP THREE: HIGH RISK High Risk Customers are those who are engaged in certain professions where money laundering possibilities are high. For this category, higher due diligence is required which includes customer's background, nature and location of activity, country of Origin, sources of funds, his/her client profile, etc. besides proper identification. The Branches shall subject such accounts to enhanced monitoring on an ongoing basis. The indicative list of High Risk Customers is furnished hereunder: 1) Trusts, Charities, NGOs and organizations receiving donations 2) Companies having close family shareholding or beneficial ownership Page | 12  Back to INDEX 3) Firms with "sleeping partners" 4) Accounts under Foreign Contribution Regulation Act 5) Politically Exposed Persons (PEPs) 6) Customers who are close relatives of PEPs and accounts of which PEP is the ultimate beneficial owner. 7) Those with dubious reputation as per public information available 8) Accounts of non-face-to-face- customers etc. 9) High Net Worth Individuals 10) Non-resident Customers 11) Accounts of Cash intensive business such as accounts of Bullion dealers (including sub-dealers) and jewellers. 12) Blocked accounts and Unclaimed deposits 13)Persons and entities having large number of cases filed against them by the competent authorities viz., Enforcement Directorate, Police, Income Tax Department, Monitoring Agency for Forex Violations, Commercial Tax Department, Bodies handling Export/Imports disputes The branches may categorize the customers according to the risk perceived by them by taking into account the above-mentioned aspects. Branches shall prepare a Risk profile of each customer and apply enhanced due diligence measures on High-Risk customers. CUSTOMER IDENTIFICATION PROCEDURE (CIP) Customer identification means undertaking Customer Due Diligence (CDD) measures while commencing an account-based relationship including identifying and verifying the customer and the beneficial owner on the basis of one of the OVDs. Branches shall obtain sufficient information necessary to establish, to its satisfaction, the identity of each new customer, whether regular or occasional and the purpose of the intended nature of banking relationship. The Branch shall observe due diligence based on the risk profile of the customer in compliance with the extant guidelines in place. Besides risk perception, the nature of information/documents required would also depend on the type of customer (individual, corporate, etc.). Branches shall undertake identification of customers in the following cases: Commencement of an account-based relationship with the customer. Carrying out any international money transfer operations for a person who is not an account holder of the bank. When there is a doubt about the authenticity or adequacy of the customer identification data it has obtained. Selling third party products as agents, selling their own products, payment of dues of credit cards/sale and reloading of prepaid/travel cards and any other product for more than rupees fifty thousand. Carrying out transactions for a non-account-based customer, that is a walk-in customer, where the amount involved is equal to or exceeds rupees fifty thousand, whether conducted as a single transaction or several transactions that appear to be connected. Page | 13  Back to INDEX Branches shall ensure that introduction is not to be sought while opening accounts. After passing of PML Act and introduction of document based verification of identity/address of the proposed account holders, the accounts opened with proper documents are considered as acting in good faith and without negligence by the bank. When the Bank has reason to believe that a customer (account- based or walk-in) is intentionally structuring a transaction into a series of transactions below the threshold of rupees fifty thousand. For the purpose of verifying the identity of customers at the time of commencement of an account-based relationship, Bank at their option rely on customer due diligence done by third party subject to conditions. The records or information of the customer due diligence carried out by the other reporting entities is to be obtained immediately from the third party or Central KYC Records Registry, at the request of Customer, through KYC Cell, Central Office. MONITORING OF TRANSACTIONS Banks shall undertake on-going due diligence of customers to ensure that their transactions are consistent with their knowledge about the customers, customers’ business and risk profile; and the source of funds. Without prejudice to the generality of factors that call for close monitoring following types of transactions shall necessarily be monitored:  Large and complex transactions including RTGS transactions, and those with unusual patterns, inconsistent with the normal and expected activity of the customer, which have no apparent economic rationale or legitimate purpose.  Transactions which exceed the thresholds prescribed for specific categories of accounts.  High account turnover inconsistent with the size of the balance maintained.  Deposit of third party cheques, drafts, etc. in the existing and newly opened accounts followed by cash withdrawals for large amounts. The extent of monitoring shall be aligned with the risk category of the customer. i.e., High risk accounts have to be subjected to more intensified monitoring.  A system of periodic review of risk categorisation of accounts, with such periodicity being at least once in six months, and the need for applying enhanced due diligence measures shall be put in place.  The transactions in accounts of marketing firms, especially accounts of Multi-level Marketing (MLM) Companies shall be closely monitored. Explanation: Cases where a large number of cheque books are sought by the company and/or multiple small deposits (generally in cash) across the country in one bank account and/or where a large number of cheques are issued bearing similar amounts/dates, shall be immediately reported to Reserve Bank of India and other appropriate authorities such as FIU-IND. Page | 14  Back to INDEX Cash Transaction Report (CTR): Report of all cash transactions of the value more than rupee ten lakhs or its equivalent in foreign currency and all series of cash transactions integrally connected to each other which have been valued below rupees ten lakhs or its equivalent in foreign currency where such series of transactions have taken place within a month and aggregate value of such transactions exceed Rupees 10 lakhs. However individual entries below Rs. 50,000/- need not be reported in the Cash Transaction Report. CTR to be sent to FIU-IND by 15th of succeeding month. Suspicious Transactions Report (STR): While determining suspicious transactions, bank will be guided by the amended definition of suspicious transaction as contained in PMLA Rules as "Suspicious transaction" means a "transaction" as defined below, including an attempted transaction, whether or not made in cash, which, to a person acting in good faith: o gives rise to a reasonable ground of suspicion that it may involve proceeds of an offence specified in the Schedule to the Act, regardless of the value involved; or o appears to be made in circumstances of unusual or unjustified complexity; or o appears to not have economic rationale or bona-fide purpose; or o gives rise to a reasonable ground of suspicion that it may involve financing of the activities relating to terrorism. Bank will ensure furnishing of STR within seven days of arriving at a conclusion by the Principal Officer of the Bank that any transaction, whether cash or non-cash, or a series of transactions integrally connected are of suspicious nature. Bank will ensure not to put any restrictions on operations in the accounts where an STR has been filed. The submission of STR will be kept strictly confidential, as required under PML Rules and it will be ensured that there is no tipping off to the customer at any level. In case any suspicious transaction is detected, the same be reported to Centralised AML Cell for onward submission of Suspicious Transaction Report (STR) to Financial Intelligence Unit India (FIU-IND) through FIN net Gateway after getting the approval of Principal Officer of the Bank. Counterfeit Currency Report (CCR): Cash transactions where forged or counterfeit currency notes have been used as genuine or where any forgery of a valuable security or document has taken place shall be reported to FIU-IND by 15th of the successive month. Non Profit Organisations Transaction Report (NTR): Bank will report all transactions involving receipts by non-profit organizations of value more than ten lakh or its equivalent in foreign currency to the director FIU-IND by 15th of successive month. Page | 15  Back to INDEX Cross Border Wire Transfer Report (CWTR): All cross border wire transfers of value more than 5 lakh or its equivalent in foreign currency will be reported to Director FIU-IND where either origin or destination of funds is in India, by 15th of the successive month. Single Transaction Threshold Limit (STTL): Threshold Limit is fixed based on the Risk Categorisation and the Annual Income (for individuals)/Annual Turnover of business (for enterprise accounts). The method of arriving STTL Limit is furnished below: RIP TYPE RETAIL CORPORATE (25 % of Annual Income) (1/12 of Annual Turnover) th Minimum Maximum Minimum Maximum RIP 1 Low 50000 20,00,000 5,00,000 50,00,000 RIP 2 Medium 50000 15,00,000 4,00,000 50,00,000 RIP 3 -High 50000 10,00,000 3,00,000 50,00,000 System will calculate STTL value automatically, once the annual income/turn over and RIP classification are entered. If the transaction amount exceeds the STTL Limit, the system will throw pop up message. If it is found suspicious, STR to be filed through AML Cell, CO. ON-GOING DUE DILIGENCE Bank shall undertake on-going due diligence of customers to ensure that their transactions are consistent with their knowledge about the customers, customers’ business and risk profile; and the source of funds/wealth. Without prejudice to the generality of factors that call for close monitoring following types of transactions shall necessarily be monitored: Large and complex transactions including RTGS transactions, and those with unusual patterns, inconsistent with the normal and expected activity of the customer, which have no apparent economic rationale or legitimate purpose. Transactions which exceed the thresholds prescribed for specific categories of accounts. High account turnover inconsistent with the size of the balance maintained. Deposit of third-party cheques, drafts, etc. in the existing and newly opened accounts followed by cash withdrawals for large amounts. For ongoing due diligence, bank may consider adopting appropriate innovations including artificial intelligence and machine learning (AI & ML) technologies to support effective monitoring. The extent of monitoring shall be aligned with the risk category of the customer. Page | 16  Back to INDEX UPDATION / PERIODIC UPDATION OF KYC "Periodic Updation" means steps taken to ensure that documents, data or information collected under the Customer Due Diligence process is kept up-to-date and relevant by undertaking reviews of existing records at periodicity prescribed by the Reserve Bank. Bank shall adopt a risk-based approach for periodic updation of KYC ensuring that the information or data collected under CDD is kept up-to-date and relevant, particularly where there is high risk. Periodic updation of KYC shall be carried out based on the Risk category of the customers as follows: once in every two years for high risk customers, once in every eight years for medium risk customers and once in every ten years for low risk customers from the date of opening of the account/ last KYC updation. Bank shall carry out Customer Due Diligence process for all existing active accounts as and when due for Periodic Updation, as specified earlier. Individual Customers: No Change in the KYC Information: In case of no change in the KYC information, a self-declaration from the customer in this regard shall be obtained through customer's email-id registered with the RE, customer's mobile number registered with the RE, ATMs, digital channels (such as online banking / internet banking, mobile application of RE), letter, etc. Change in Address: In case of a change only in the address details of the customer, a self-declaration of the new address shall be obtained from the customer through customer's email-id registered with the RE, customer's mobile number registered with the RE, ATMs, digital channels (such as online banking / internet banking, mobile application of RE), letter, etc., and the declared address shall be verified through positive confirmation within two months, by means such as address verification letter, contact point verification, deliverables, etc. Further, REs, at their option, may obtain a copy of OVD or deemed OVD or the equivalent e-documents thereof, as defined in Section 3(a)(xiii), for the purpose of proof of address, declared by the customer at the time of periodic updation. Such requirement, however, shall be clearly specified by the RES in their internal KYC policy duly approved by the Board of Directors of RES or any committee of the Board to which power has been delegated. Accounts of customers, who were minor at the time of opening account, on their becoming major: In case of customers for whom account was opened when they were minor, fresh photographs shall be obtained on their becoming a major and at that time it shall be ensured that CDD documents as per the current CDD standards are available with the branch. Wherever required, Branch may carry out fresh KYC of such customers i.e. customers for whom account was opened when they were minor, on their becoming a major. Aadhar OTP based e-KYC in non face to face mode may be used for periodic updation. To clarify, conditions stipulated in Section 17 are not applicable in case of updation/ periodic updation of KYC through Aadhaar OTP based e- KYC in non-face to face mode. Page | 17  Back to INDEX Declaration of current address, if the current address is different from the address in Aadhaar, shall not require positive confirmation in this case. REs shall ensure that the mobile number for Aadhaar authentication is same as the one available w them in the customer's profile, in order to prevent any fraud. Customers other than Individuals: No Change in the KYC Information: In case no change in the KYC information of Legal entities customers, a self-declaration in this regard shall be obtained from the legal entity through its email id registered with the bank, ATM, digital channels (such as online banking/internet banking, mobile application of the bank), letter from an official authorised by the legal entity in this regard, board resolution etc. Branch shall ensure during this process that Beneficial Ownership (BO) information available with them is accurate and shall update the same in CBS, if any changes. Branch also needs to ensure that KYC documents as per current CDD standard are available with Branch even if no Change in the KYC information. Change in KYC Information: Branch shall undertake the KYC process equivalent to that applicable for on-boarding a new Legal Entity customer. SECRECY OBLIGATIONS AND SHARING OF INFORMATION a) Branches shall maintain secrecy regarding the customer information which arises out of the contractual relationship between the banker and customer. b) Information collected from customers for the purpose of opening of account shall be treated as confidential and details thereof shall not be divulged for the purpose of cross selling, or for any other purpose without the express permission of the customer. c) While considering the requests for data/information from Government and other agencies, banks shall satisfy themselves that the information being sought is not of such a nature as will violate the provisions of the laws relating to secrecy in the banking transactions. d) The exceptions to the said rule shall be as under: o Where disclosure is under compulsion of law o Where there is a duty to the public to disclose, o the interest of bank requires disclosure and o Where the disclosure is made with the express or implied consent of the custom HANDLING LAW ENFORCEMENT AGENCIES REFERENCES In response to the queries from various Law Enforcing Agencies, the departments officers, at times are required to make search of accounts, based on PAN, Names, Aadhar numbers, Driving Licenses, Mobile numbers etc. The officers shall use tools provided by Finacle system to make search from the database like menus HCRV for PAN / ADHAR / Names /etc., search, HCUACC/HCSM for account search based on customer IDs, MRCR/MCEC etc.. for search of address etc. Their responsibility is restricted to the extent of data generated by these search menus and data available in the Finacle system. Apart from the above, the Law Enforcing Agencies require additional documents such as copies of Account opening forms, Statement of Account. KYC documents. Appraisal notes etc. These are collected by relevant officers from branches/Regional Offices/DBD etc. Page | 18  Back to INDEX Apart from regular enquiry/Searches from Law Enforcing Agencies if any. Intimation of Investigation is received to AML department then as per the Instruction the accounts should be freezed and Risk categorization to be modified to High along with Enhanced due diligence. The PMLA searches referred by ED/LEA to be entered under HAFSM menu in finacle with specific option/push button as 1. PMLA search by Law Enforcement agency for Statement/PAN/KYC purpose 2. Account under investigation by Law Enforcement Agency THANKS GIVING LETTER Branches have to send Thanks Giving Letter by registered post with ack