LCPC Past Paper PDF

1.Which of the following document is not required to be produced by firms for opening account ? A) Partnership deed and partnership letter B) OVD and PAN of all the partners C) PAN of the firm D) Resolution by the firm for opening of account 2.On approval by Checker at LCPC scanned images are transm...

1.Which of the following document is not required to be produced by firms for opening account ? A) Partnership deed and partnership letter B) OVD and PAN of all the partners C) PAN of the firm D) Resolution by the firm for opening of account 2.On approval by Checker at LCPC scanned images are transmitted to________ for upload to CERSAI A) GITC B) LHO C) BRANCH D) CORPORATE CENTER 4.Which document can not be accepted while opening an account of limited company? A) Company PAN B) Certificate of Incorporation C) Registered MOA and AOA D) If not PAN then Form 60 5.Discrepant/incomplete images can be rejected by maker at LCPC by choosing appropriate reasons from the drop-down menu available in the_____ A) LCPC Workflow B) CBS C) CKYC Interface D) CKYCR Interface 7. Offence of money laundering is defined under A) Section 3 of Prevention of Money Laundering Act (PMLA 2002) B) RBI Act 1934 C) SBI Act 1959 D) Only A 8.Who has to sign the COS 38 while opening account of HUF A) Karta and All adult coparceners of HUF B) only adult coparceners of HUF C) All coparceneres of HUF D) only Karta 9.Customer can be classified under?........kind of risk category as per KYC/AML/CFT policy. A) Four B) Three C) Two D) One 10. A social engineering attack, typically using spoofed email addresses and links to trick people into providing login credentials, credit card numbers, or other personal information is known as? A) Smishing B) Phishing C) Baiting D) pharming 12.On successful completion of CKYC process, how the customer gets to know his/her CKYC number? A) CKYC number generated will be advised to customer by e-mail ID by GITC Belapur B) CKYC number generated will be advised to customer by SMS on the registered mobile number by CERSAI C) CKYC number generated will be advised to customer by SMS on the registered mobile number by GITC Belapur D) CKYC number generated will be advised to customer by SMS on the registered mobile number by LCPC 13.Which among the following category customer can be classified under Low Risk? A) Import/Export customers B) Trust C) Statutory bodies D) Partnership Firm 15.While creating new CIF,which amongst the following is not mandatory field? A) Landline number B) First name C) Date of Birth D) Last name 16.In case of account of Trust, how to identify the beneficial owner as per master directions on KYC by RBI? A) the identification of beneficial owner(s) shall include identification of the author of the trust, the trustee, the beneficiaries with 15% or more intrest in the trust and any other natural person exercising ultimate effective control over the trust through a chain of control or ownership B) identification of beneficial owner(s) shall include identification of the author of the trust, the trustee, the beneficiaries with 20% or more intrest in the trust and any other natural person exercising ultimate effective control over the trust through a chain of control or ownership C) identification of beneficial owner(s) shall include identification of the author of the trust, the trustee, the beneficiaries with 5% or more intrest in the trust and any other natural person exercising ultimate effective control over the trust through a chain of control or ownership D) identification of beneficial owner(s) shall include identification of the author of the trust, the trustee, the beneficiaries with 1O% or more intrest in the trust and any other natural person exercising ultimate effective control over the trust through a chain of control or ownership 17.With in how many days of commencement of Account based relationship with a client , as a reporting entity SBI is required to file electronic copy of its customers KYC records to CERSAI ? As per GOI instructions. A) 3 days B) 14 days C) 10 days D) 7 days 19. 2nd Scrutiny of images and CIS/AOF is done by a) Maker at LCPC b) Maker & Checker at LCPC c) Checker at LCPC d) AGM LCPC 21. Within how many months customer can submit updated OVD with current address after submitting deemed OVD? a) 1 Month b) 2 Months c) 3 Months d) 6 Months 22.Debit transactions are allowed in new accounts only? a) When LCPC maker approves the CIF b) When LCPC checker approves the CIF c) When CERSAI approves the CIF d) When GITC approves the CIF 23.Which is not an element of KYC policy guideline? a)Customer Acceptance Policy (CAP) b) Risk Management c) Customer identification Procedures (CIP) d) Non Monitoring of Transactions 24.Which one of the following does not constitute elements of KYC as per KYC policy ? a) Customer Acceptance Policy b) Monitoring of Transactions c) Customer identification Procedure d) Customer Acqisition procedure 25.As per PMLA-2002 every reporting entity shall within____ days after the commencement of an account-based relationship with a client, file the electronic copy of the client?s KYC records with the Central KYC Records Registry. a) 3 days b) 14 days c) 10 days d) 7 days 26.Sensitive Personal Data or Information (SPDI) inclusive of 1) Financial information,2) Health information 3)Genetic Data 4)Biometric data 5)Passwords a) All 1,2,3,4&5 b) Only 2,3,4 c) Only 1,2,3 d) Only 2,4,5 27.During V-CIP process while ensuring that customer is physically present in india ,Live location of him/her must be captured through? a) Geo Tagging b)GPS Location c) GPS Tagging d) Loco Tagging 28.Images of AOF are allotted to maker on what basis at LCPC? A) Allotted on Robin Round basis B) Allotted on first come first out C)Allotted On random basis D)None of the above 29.Fresh JHF/HUF letter (COS 38) need to be obtained in case of? a) Only on death of coparcener b) Only on Birth of coparcener c) None of the above d) Both A&B 30. FATCA Stands for a) Foreign Accounts Tax Compliance Act (USA) b) Foreign Account Tax Compliance Act c) Foreigner?s Accounts Tax Compliance Act d) Foreigner?s Account Tax Compliance Act 37.A customer having CKYC number approaches branch and wants to open an account. He has completed his AOF in all respect. But at that moment he was not carrying original valid KYC documents with him. Can we open his account? a) No, Branch has to obtain fresh copies of OVDs and then proceed to open his account b) Yes, but only after verifying any other additional identification documents or details c) Yes, but only after verifying original valid KYC documents d) Yes, but only after retrieving KYC records online from the CKYCR by using the KYC identifier and verifying and ensuring that the data received by CKYCR pertains to the same customer 38. As per RBI Guidelines , what is the periodicity if review of current accounts opened by bank: a)Monthly b) Bi monthly c) Quarterly d) Half yearly 39.An SB account holder can nominate__________ in his SB account a) 1 or more b) Not more than 2 c) Only 1 d) Nomination not permitted in SB account 40.Which among the following is not OVD? a)Passport b)Letter issued by the National population register containing details of name and address c) PAN Card d) Aadhar Card 43.GIIN stands for a) Global inter bank identification number b)Global institution identification number c) Global intermediary identification number d) Global income identification number 44.PMLA Act 2002 is concerned about a) Prevention of money laundering b)Prevention of trade off c) Prevention of futures/options d) None of the above 47.All accounts opened through ?______ shall be made operational only after being subject to concurrent audit to ensure the integrity of process. a) V-CIP b)X-CIP c) CIP d) None of the above 48.Which of the following type of accounts are covered under FATCA &CRS? a) All commercial and Current Accounts only b) All current and savings bank accounts only c) All commercial, current, saving bank and term deposits accounts d) All current,savings bank and term deposits accounts only 52.While requesting for change in nomination in PPF account, which of the following is correct ? a) No witness is required b)1 Witness is required c) No witness is required in case of literate account holder d) None of the above In terms of PML Act, what is the period for which, records of transactions between the RE and the customer, both domestic and international to be retained by RE? for at least a) Five years b) Five years from the date of transaction c) Ten Years d) Five Years from the date of closure of the account 55.There are two types of accounts under FATCA & CRS a) Individual Accounts & Non Individual Accounts b) Individual Accounts & Entity Accounts c) Entity Accounts & Non Entity Accounts d) Personal Accounts & Non Personal Accounts 56.Whenever we onboard a new customer, which initial steps branch need to take prior to setting up of CIF ? a) Ensure that the customer do not have existing CIF of in CBS database b) Ask customer to submit undertaking that he has no existing CIF c) Obtain existing CIF of family member d) Obtain his CIF if existing in any other bank 57.What Non-Personalised Welcome Kits (NPWKs) doesn’t contain? a) Cheque Book b) Green pin c) INB Kit d) ATM Card 59.FATCA rules mandate review of accounts only when they qualify a) having balance of more than USD 50000 as at the end of financial year b) having balance of more than USD 50000 as at the end of calendar year c) having balance of more than USD 25000 as at the end of calendar year d) having balance of more than USD 25000 as at the end of financial year 60.A person holding a PPF account in his name , can nominate? a) Only 1 nominee b) 1 or more nominee c) Not more than 2 d) Nomination not permitted in PPF account 61.Which kind of risks statutory bodies comes under? a) Medium risk b) Low risk c) High risk d) No risk 62. Beneficial owners name and their shareholding/controlling stake are obtained and recorded on a) Annexure I b) Annexure IV c) Annexure III d) Annexure II 64.When there is no change in KYC information, the updation can be carried out through…… a) Branch Channel Only b) INB &ATM c) INB,ATM,Branch channel&Yono d) Through Registered Email id ,Letter, Branch channel, INB,ATM&Yono 65.What is not the purpose of opening of savings account with welcome kits at branches? a) it will help in decongestion branches by migrating them to alternate channels. b)To make available cheque book,INB Kit &ATM Card c) To improve our customer service d) None of the above 66.Which is not the document required for opening account of a proprietary concern ? a) Sales and income Tax returns b) Recommendation letter from Govt Authority c) Certificate/registration document issued by sales Tax/service tax/professional tax authorities d) CST/VAT/GST Certificate (provisional/Final) 68.For probable matches triggered by CKYCR, Maker at LCPC finds that the probable match received from CERSAI does not pertain to the customer for whom the data has been uploaded by us, then what is next course of action ? a) Maker will reject these records. New C-KYC number will be generated by GITC b) Checker will reject these records. New C-KYC number will be generated by CERSAI c) LCPC Admin will reject these records. New C-KYC number will be generated by CERSAI d) Maker will reject these records. New C-KYC number will be generated by CERSAI 70.What is defined under section 3 of Master Directions on KYC by RBI? a) V-CIP b)X-CIP c) CIP d) None of the above 71.Under section 12 of PMLA, which obligation bank’s need not follow? a) Maintaining a record of prescribed transactions b) Furnishing information of prescribed transactions to the specified authority c) Verifying and maintaining record of the identity of itsclients(in other words complying with the kyc requirements ) and identifying the beneficial owners, if any, of such clients d) Non maintained of records for 5 years 72.LCPC shall not be responsible for the loss of AOF or KYC documents if a) All AOF and KYC are not segregated and sent to LCPC with mixed lot b)AOFs are properly signed c) Photo not affixed d) KYC not attested by branch 73.Can priority /order of Queues be changed ? a) Yes, AGM(LCPC) has to instruct Admin to do that b) Yes, with the intervention of GITC c) Yes, AGM(LCPC) only has right to allocate queue as priority d) No,as system allocates all the queues based on the logic keyed in 74.CRS is applicable to the ?........ accounts a) US Reportable b)Other than US Reportable c) Only A d) Only B 75.A Joint Hindu Family engaged in business activity can open?......Only a) Current account b)Saving bank account c) Either saving bank account or Current account as per customer needs d) CC Account only 76.Who keeps the custody of welcome kits at branch? a) Cash officer b)Branch Manager c) Service Manager d) Joint custodian with vault teller rights 77.In case of account of a new customer, within how many days SBI as a reporting entity requires filing electronic copy of its customers KYC records to CERSAI? a) 5 days after opening an account b) 8 days after opening an account c) 10 days after opening an account d) 15 days after opening an account 78.Who among the following are politically exposed persons 1)Heads of states or of governments 2) senior politicians 3)Senior government/judicial/military officers a) Only 1 b)Only 2 c)Only 2&3 d)All of them 79.If, customer, at the time of onboarding , voluntarily provide Aadhaar number for identification purpose , and wants to provide current address different from the address contained in Aadhaar record,which document may be obtained from the customer in that case, after ensuring that Aadhar authentication/offline verification is done in all such cases without fail? a)Rent agreement with same address as that of Aadhar card b)Copy of utility bill not more than 6 months old c)Self Declaration d)Either of A and B 80.FATCA has been introduced to a) To help counter tax evasion in the US b)To help counter tax evasion in india c)To help counter tax evasion in member nation of UN d) All are correct 81.CERSAI generates how many digits of CKYC number? a)10 b)12 c)14 d)16 84.NPWKs are very important for the bank because…. a)As it gets issued on the very same day b)Almost all the requirement of customer is fulfilled c)it will help to bank in decongestion of branches by shifting customers to alternate channels d)All of the above 85.Which of the following are not correct for Relationship Manager(RM) FATCA & CRS? a) Branch managers of branches with incumbency up to SMGS-V b)One of the AGMs in branches headed by DGM and above c) Official authorizing account opening in the branch d) If there are more than one official handling account opening in the branch, any one of such officials 87.Who enacted/legislated on FATCA? a)United states of America b)United kingdoms c)United Nations d)United arab emirates 88.Admin(LCPC) has assigned the role in the system. Who can remove or re-assign this assigned role? a) Once allocation done by system, it can not be re-assigned b) Admin(LCPC) can remove and re-assign c) Only AGM(LCPC) can remove and re-assign d) by raising a S-Core request by Admin(LCPC) 21. How many months old utility bill should customer can submit current address proof? a)1month 2)3 months c)6 months d)12 months RBI has specified KYC standards. KYC standards are required under Anti Money Laundering (AML) and Combating of Financing of Terrorism (CFT). Section 3 of the Prevention of Money Laundering Act, 2002 (PMLA) has defined the “offence of money laundering” as under: Section 12 of PMLA places the following obligations on the Bank:- i.maintaining a record of prescribed transactions ii.furnishing information of prescribed transactions to the specified authority iii.verifying and maintaining records of the identity of its clients (in other words complying with the KYC requirements) and identifying the beneficial owners, if any, of such clients iv.Preserving records in respect of (i) and (ii) above for a period of five years from the date of transactions, and in respect of (iii) above for a period of five years after the cessation of relationship with the clients in respect of account opening forms and KYC documents. PPF A Customer wants to cancel the nomination in PPF account ? Form -F To add nominee ? Form-E How many Nominee’s in PPF account – 1 or More How many Witness for nominee register in PPF AC --2 incase of illeterate We can change PPF nominee any time The KYC policy has the following four elements i.Customer Acceptance Policy (CAP) – it ii. Risk Management – iii. Customer Identification Procedures (CIP) – iv. Monitoring of Transactions – Beneficial Owner(BO) Beneficial owner is an individual who ultimately owns or controls a client of a reporting entity or the person on whose behalf a transaction is be ing conduct ed (a) Where the customer is a company, the beneficial owner is the natural person(s),who, whether acting alone or t ogether, or t hrough one or more juridical persons, has/haveacontrollingownershipinterestorwhoexercisecontrolthrougho thermeans. “Controlling ownership interest” means ownership of/entitlement to more than 10percentofthesharesor capitalor profitsof thecompany. “Control” shall include the right to appoint majority of the directors or to control themanagement or policy decisions including by virtue of t heir shareholding or managementrightsorshareholdersagreementsorvotingagreements. (b) Where the customer is a partnership firm, the beneficial owner is the naturalperson(s), who, whether acting alone or together, or through one or more juridicalperson, has/have ownership of/entitlement to more than 10 per cent of capital orprofitsofthe partnership. (c) Where the customer is an unincorporated association or body of individuals, thebeneficial owner is the natural person(s), who, whether acting alone or together, orthrough one or more juridical person, has/have ownership of/entitlement to morethan 15 per cent of the property or capital or profits of the unincorporated association orbodyof individuals. (d) 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%or more interest in the trust and any other natural person exercising ultimate effectivecontroloverthetrustthroughachainofcontrolorownership. Beneficial Owner - 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 a. “Controlling ownership interest” means ownership of/entitlement to more than 25 per cent of the shares or capital or profits of the company. b. “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. c. 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 15 per cent of capital or profits of the partnership. d. 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 per cent of the property or capital or profits of the unincorporated association or body of individuals. e. 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 f. 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 15% 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 Small Account: means a savings account which is opened in terms of subrule (5) of the PML Rules, 2005.Small Accounts entails following limitations: (a) the aggregate of all credits in a financial year does not exceed Rupees one lakh. (b) the aggregate of all withdrawals and transfers in a month does not exceed Rupees ten thousand; and (c) the balance at any point of time does not exceed Rupees fifty thousand.  Provided, that this limit on balance shall not be considered while making deposits through Government grants, welfare benefits and payment against procurements. The account shall remain operational initially for a period of twelve months which can be extended for a further period of twelve months Officially Valid Documents (OVDs) a. The Passport b. The Driving License c. Proof of Possession of Aadhaar number d. Voter id Card issued by Election Commission of India e. Job card issued by NREGA duly signed by an officer of the State Government f. Letter issued by the National Population Register containing details of name and address ( Aadhaar number has been redefined to include any alternative Virtual Identity Number (VIN) generated. Branches/Business Units shall obtain the Aadhaar number from an individual who is desirous of receiving any benefit or subsidy under any scheme notified under section 7 of the Aadhaar (Targeted Delivery of Financial and Other subsidies, Benefits and Services) Act, 2016 (18 of 2016), and the same shall be authenticated. 1. If there is a change of name after marriage, then a document shall be deemed to be an OVD if it is supported by a marriage certificate issued by the State Government or Gazette notification, indicating such a change of name. 2. Certified copy means - comparing the copy of officially valid document so produced by the client with the original and recording the same on the copy by the authorised officer of Bank If the OVD furnished by the customer does not contain updated address, the individual shall submit documents which are termed as deemed OVDs for the limited purpose of proof of address. The customer shall submit OVD updated with current address within a period of three months of submitting the above documents. oCustomer Due Diligence (CDD) If the customer, at the time of onboarding, voluntarily provides Aadhaar number for identification purpose, and wants to provide current address different from the address contained in Aadhaar records, a self-declaration may be obtained from the customer to that effect and such current address may be entered in CBS. Further, Branches /Business Units shall ensure that Aadhaar authentication/ is done in all such cases without fail. 1. If the OVD submitted 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. utility bill which is not more than two months old of any service provider (electricity, telephone, post-paid mobile phone, piped gas, water bill) b. property or Municipal tax receipt c. pension or family pension payment orders (PPOs) issued to retired employees by Government Departments or Public Sector Undertakings, if they contain the address d. 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 license agreements with such employers allotting official accommodation However, the customer shall submit OVD updated with current address within a period of 3 months of submitting the above documents. Updation of KYC once in every two years for high risk customers, once in every eight years for medium risk customers once in every ten years for low risk customers Individual Customers: i. No change in 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 Bank, customer’s mobile number registered with the Bank, ATMs, digital channels (such as online banking / internet banking, mobile application of Bank), letter etc. ii. 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 Bank, customer’s mobile number registered with the Bank, ATMs, digital channels (such as online banking / internet banking, mobile application of Bank), 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. Proprietary Concerns 1. Minimum 2 documents issued in the name of Proprietary Concern from the following list of documents along with OVD and PAN/Form 60 of the proprietor Registrationcertificate 2. Certificate/license issued by the Municipal Authorities under Shop & Establishment Act. 3. Sales and Income Tax returns. 4. CST/VAT/GST Certificate (provisional/ Final) Certificate/registration document issued by Sales Tax/Service Tax/Professional Tax authorities In cases where the Branch / Office is satisfied that it is not possible to furnish two such documents, they may accept only one of those documents as proof of business/activity. Provided Branch / Office undertake contact point verification and collect such other information and clarification as would be required to establish the existence of such firm, and shall confirm and satisfy itself that the business activity has been verified from the address of the proprietary concern. Limited Company 1. Certificate of Incorporation dated …………………………………………… (for inspection and return). A copy of the same is Retained; 2. Memorandum of Association registered on …………………………………………………… and Articles of Association dated ………………………… obtained; 3. A resolution from the Board of Directors and Power of Attorney granted to its managers, officers or employees to transact on its behalf; 4. PAN. (Note: PAN is mandatory for companies. Form 60 is not acceptable.) Partnership Firm 1. Registration Certificate (in case of registered firms); 2. Partnership deed dated………………………………………………………; PAN of the Partnership Firm (Note: PAN is mandatory for Partnership firms. Form 60 is not acceptable.Trust 1. Registration Certificate; 2. Trust Deed; and 3. PAN of the Trust; and 4. (a) OVD; and (b) Permanent Account Number of Form 60 issued to the person holding POA on its behalf Other Documents HUF 1. Joint Hindu Family Letter (The existing Joint Hindu Family Letter (Part-A) shall continue to be used for HUFs whose funds relate to business and modified Joint Hindu Family Letter (Part -B) should be used for HUFs whose funds do not relate to business.)dated ………and No. …… Obtained on Cos 38, signed by all the adult coparceners Family (HUF) 2. Declaration from the Karta 3. OVD and PAN of Karta 4. OVD and PAN of adult coparceners 5. PAN Card or Form 60of Joint Hindu Family On death of a coparcener, birth of a coparcener and a minor coparcener attaining majority (18 years), a fresh JHF letter (COS 38) has to be executed Declaration that a) the depositor is the Karta of the Joint Family, b) the deposit belongs to JHF Accounts of PoliticallyExposed Persons (PEP) sufficient information including information about the sources of funds accounts of family members and close relatives is gathered on the PEP “Politically Exposed Persons” (PEPs) are individuals who are or have been entrusted with prominent public functions by a foreign country, including the Heads of States/Governments, senior politicians, senior government or judicial or military officers, senior executives of stateowned corporations and important political party official The following can open a Current Account – as stated above if the purpose is other than savings than almost anyone can open a Current Account. The list could be as under: 1. Individuals 2. Proprietorship Firms 3. Partnership Firms (Unlimited / Limited Liability) 4. Joint Hindu Family (engaged in business activity then mandatory current account only) 5. Private & Public Limited Company 6. Clubs/ Associations/ Societies of other fiduciary nature 7. Trusts 8. Liquidators 9. Executors and Administrators 10. Banks 11. Local bodies like Municipal Corporations, Zilla Parishads, Taluka Panchayats and Gram Panchayats are given grants in the nature of ‘compensation and assignments’, which also form part of budgetary allocation, although taxes collected by these bodies are not covered under the definition and scope of budgetary allocation of Central and State Governments. Accounts of jewellers/bullion dealers, NRIs, HNIs, trusts, charities, NGOs, PEPS, non-face to face persons to be categorized as high risk requiring enhanced due diligence Common issues related to Account Opening: Following common irregularities are pointed out by the Inspecting officials during Audit: Documents obtained viz. Proof of ID, Proof of Address and Photograph are not held on record. Proof of ID, Proof of Address and Photograph are not updated, as prescribed / Full particulars of the documents are not entered in the CBS correctly. Multiple CIF of same branch or at different branches have not been deduped/merged into a single CIF. Passbooks including duplicate Passbooks and Welcome Kits are not handed over to the Account Holders under acknowledgement. Welcome Kits are not kept in Joint Custody. Welcome kits are not handed over to the Account Holders under acknowledgement. Welcome Kits are not reconciled at the prescribed periodicity. Cheque books including Emergency Cheque Books are not issued against requisition slips/ written request after verifying the identity and signature of the customer.  Undelivered cheque books are not deactivated immediately in CBS and kept under joint custody and not destroyed as per guidelines. In all inoperative a/cs with balances over Rs 25,000, all extant guidelines for such cases are not meticulously followed Inoperative Accounts are not revived, and operations permitted without authorization, verification of addresses, signatures & identity of the customer. Communications is not sent to all customers (who’s a/cs have a balance of Rs. 5,000 & above and where no customer-induced transactions have taken place for more than a year) for ascertaining reasons for non-operation. (For details please go through report folder of end of June and December) In all inoperative a/c's with balances over Rs 25,000/-, where communication forwarded to account holders is returned undelivered extant guidelines viz enquiry through telephone, e-mail, contact through employers or any other known person, legal heirs etc. are not followed. Welcome Letter returned undelivered are not recorded in system and appropriate action not taken. Specimen signatures are not scanned and uploaded in the system. Account opening forms (AOFs) are not sent to e-DAC on prescribed interval using the Workflow module and discrepant AOF are not rectified and submitted. SB accounts opened for Government / Quasi Govt. Depts without obtaining proper authority letter from the competent authority of the concerned Govt. Dept. and proper record not maintained. Mismatch in information on PAN card & Officially valid document (OVD)/mandatory document submitted as Customer Due Diligence (CDD) Video based Customer Identification Process (V-CIP) (i) the validity of Aadhaar XML file / Aadhaar Secure QR Code and (ii) to undertake the video process has been amended to ‘three working days.” Concurent audit must take place on V-CIP EDD- Enhanced Due Diligence procedure is followed before establishing Account based relationship with Accounts of Politically Exposed Persons (PEPs)? (a) sufficient information including information about the sources of funds accounts of family members and close relatives is gathered on the PEP;  (b) the identity of the person shall have been verified before accepting the PEP as a customer; (c) the decision to open an account for a PEP is taken at a senior level in accordance with the Bank’s Customer Acceptance Policy; (d) all such accounts are subjected to enhanced monitoring on an on-going basis; (e) in the event of an existing customer or the beneficial owner of an existing account subsequently becoming a PEP, senior management’s approval is obtained to continue the business relationship; (f) the CDD measures as applicable to PEPs including enhanced monitoring on an on- going basis are applicable. These instructions shall also be applicable to accounts where a PEP is the beneficial owner ✓ New AOF, Pre-LCPC AOFs, AOFs under CKYC and KYC documents are to be segregated and sent in separate envelop to LCPC marking the type of documents sent in the envelop, otherwise whole bunch will be returned without acceptance from LCPC as there is no sorting section of AOFs at LCPC. ✓ LCPC shall not be responsible for loss of AOF or KYC Documents if sent with mixed lot. Process at LCPC Menus provided through CKYC interface for second scrutiny. Allocation of records for scrutiny on the basis of available tellers in the system nd Images and CIS/AOFs will be available to LCPC maker & checker for 2 scrutiny. Approved records are processed and debit freeze will be removed and sent to CERSAI automatically. Generation of C-KYC number ❖ The CKYC number generated will be advised to the customer by SMS on the registered mobile number by GITC Belapur. CKYC Dashboard  ❖ SBI Times -> My Workplace -> Useful links 1 -> CKYC Dashboard CKYC – Common Irregularities (a) Images are not being uploaded properly according to file size and type i.e. jpg for signature & photo and pdf for AOF/other documents. (b) Mandatory / starred (*) fields in AOFs are not completely filled in. (c) Partial upload / Non uploading of documents.(Part-I / Part-II / AOF / POI / POA / Others). (d) Uploading of documents not in respective tabs. (e) Non verification of Photocopies / Documents with signature, name and SS number of Bank Official. (f) Photograph not verified with signature, name and SS number. (g) Valid KYC documents not obtained i.e. name in AOF and ID proof is not matching). (h) PAN / Form-60 / FATCA is not available. (i) Non-Updation of Screen “60429” personal Details in CBS. (j) In respect of Joint Accounts, Part-I of AOF of all the account holders are required and CIFs are to be linked with account. (k) Guardian’s CIF is to be created and linked to all minor accounts, even if the age of the minor is more than 10 years. (l) Part-I of AOF and CIF number for related persons / beneficial owners / POA holders are required and CIFs are to be linked with account. (m)Mandate for mode of operation in respect of joint account is required. (n) Nomination form (DA-1) is not completely filled in - Age, Relation, witness (wherever applicable) etc are missing. (o) More than one nomination in Deposit Account. (p) In Sukanya Samriddhi Accounts, proof of DOB / Application Form / Annexure not available. (q) Accounts opened with Pre-CKYC CIFs (CIFs created prior to 06.05.2018 (Roll Out date) do not require uploading of documents related to CKYC. (r) Partial uploading of POA and POI documents. Complete document must be uploaded and verifying official’s signature (with SS no) & seal should be legible. (s) Documents being uploaded are coded. Sometimes the code & uploaded documents does not match eg. Code selected for PAN but Aadhar is uploaded. (t) CIF created for one customer (Say for X) but document’s (AOF,POI,POA etc) uploaded are different. (Say that of Y). (u) Only CIF is created, A/C not opened and only Part –I, is uploaded & Part-II not uploaded. This is permitted in case of loan accounts only and not for Deposit Accounts. (v) While creating CIF, Loan/Deposit account is not mentioned in comment box. A detailed Procedure to be followed at LCPC level for scrutiny of images of account opening forms andscrutinyofphysicalaccount  SCRUTINY OF IMAGES OF SCRUTINY OF PHYSICAL ACCOUNT ACCOUNT OPENING OPENING FORMS AT LCPC – NON- FORMS AT LCPC - C-KYC INDIVIDUALS & INDIVIDUAL PROCESS ACCOUNTS Receiving documents at LCPC Role assignments Acknowledgment of AOFs in Workflow Re-allocation of Queue Scanning of specimen signature Allocation of forms for account data entry Receipt of scanned images at LCPC Scrutiny of application forms at account opening section Scrutiny/Data Data entry for CIF details Entry by Maker Data entry for account details Authorization/ Rejection by Maker Verification by officer Receipt/ Scrutiny of images of AOFs Discrepancy in AOFs and/ or documents by Checker Scanning of AOFs and documents Updation from CERSAI Transfer of AOFs to DAC/ LCPC Storage Submission of KYC documents by branches on Follow-up and KYC updation Monitoring opening forms are given herewith: SCRUTINY OF IMAGES OF ACCOUNT OPENING FORMS AT LCPC PROCESS Role assignments Every start of day, Admin at LCPC will mark the availability of Makers and Checkers (i.e. Present or absent), so that the system allocates all queue to present Makers and correspondingly to Checkers. Admin has the authority to remove/re-assign any role to the staff. Re-allocation of Queue Admin at LCPC can also re-allocate a set of CIFs to any Maker/Checker and also allocate any queue as Priority Receipt of scanned images at LCPC ▪ The LCPC Maker will be allocated the scanned images of AOFs along with documents. ▪ The images of the AOFs will be assigned to all the makers on round-robin basis automatically. ▪ Maker will login to C-KYC application. A summary of Makers work will appear on the screen. All pending CIF will appear on screen on FIFO method sorted by date of upload. (Functionary for above : Maker) Scrutiny/Data Entry by Maker ▪ For scrutinizing a CIF in C-KYC application, the maker will click on the CIF which will open the split screen - on right side will be CIF data populated from CBS and on left side will be images of CIS (Part I), AOF(Part II), Proof of Identity (POI), Proof of Address (POA), and other documents. ▪ The maker will verify the data on right screen with the images of AOFs/documents. ▪ All the documents/fields’ mandatory for uploading to CERSAI needs to be verified. ▪ The maker will enter the missing/non-mandatory fields in the C-KYC application taking information from the images of AOF and documents. This data will be auto-updated in CBS. Updation from CERSAI ▪ The image upload of the approved CIF to CERSAI is a continuous process ▪ On regular intervals, CERSAI updates us about status of the image uploads with 3 responses:  1) Approved accounts with newly assigned C-KYC number which are automatically updated in CBS 2) Accounts with probable matches. 3) Rejections (due to technical reasons like zip creation failed) ▪ The LCPC makers need to verify and ascertain that the probable match received from CERSAI pertains to the customer for whom the data has been uploaded by us. 1) If probable match is correct, Maker will select the record which will auto-update the C-KYC number from CERSAI in CBS. 2) If probable match is not correct, Maker will reject these records. New C-KYC number will be generated by CERSAI. Status of Probable matches for a LCPC is also updated in C-KYC Dashboard under “Probable Pending” Tab. ▪ The images of Approved CIFs will automatically travel to GITC for upload to CERSAI. ▪ The Dashboard can be accessed from: SBI Times -> My Workplace -> Useful Links 1 -> C-KYC Dashboard ▪ Apart from these, the dashboard has the facility to get the data for any period or date. All the reports can be downloaded in PDF/excel format. Scanning of specimen signature ▪ In-charge, Scanning section shall receive forms from inward Mail section and distribute to Assistants for scanning (Functionary for above : In-charge) ▪ Assistant will check signature of customer in CBS for individuals as well as non- individuals accounts (even after CKYC implementation date). If the signature is already scanned by the branch, the AOF will be marked as ‘complete’ in Workflow. Following are some of the observations made by LCPC and reasons of rejection AOFs and Documents sent by the Branches: ▪ Branch Manager/Authorised officer has not verified / scrutinised AOFs properly along with documents. ▪ In case of Government accounts, respective forms to be used for obtaining request from the customer. e.g. for PPF, SCSS, Sukanya Samruddhi A/cs, along with Part I of all CIF and KYC Documents. ▪ AOFs not used as prescribed, especially in case of current account. ▪ Branches are not obtaining Part I for all the CIF in all/some cases, in case of more than one account holder for various types of accounts. ▪ Branch officials have not ensured that all fields, Columns filled/attended. ▪ Customer’s and Branch Official’s signature are missing at some/many places. ▪ AOFs Part-I, II not filled properly, handwriting not legible, mandatory information found blank, which are required for CERSAI. Forms are incomplete, wrongly filled, partially filled. ▪ If Aadhar does not carrying full birth date, then other document mentioning full date of birth to be obtained. ▪ In case, two documents submitted by the customer, DOB and Name should be same in both the documents. ▪ In case of minor’s account branches are opening account with other relative like uncle, aunty, grandfather, other than guardian in case of father and mother both not available. In such case prior permission required from district magistrate, mamlatdar etc. branches are opening account without such permission by influence of staff or other reputed persons and local authority. ▪ In case of sole minor’s account signature obtained in full capital. ▪ Details of relation with minor not mentioned. ▪ In case of sole minor’s account, Minor’s OVD and Birth Proof to be obtained not guardians. Column No. 7 in Part I (CIS) guardians details must be obtained. ▪ In part II, columns related to nominations must be filled. ▪ Except Bank Accounts, in all other accounts more than one nominee allowed. In all cases full details of nominee not obtained, incomplete details observed, like relation, date of birth of nominee etc. ▪ Signature of witnesses required in case of nomination made by literate customer also, in Government Accounts, while in Bank Accounts signature of witnesses required only in case of illiterate customers. ▪ In case of nomination made by illiterate customer, it should be witnessed by two individuals with full address and contact number. ▪ Further, signature of witnesses not obtained as per applicability discussed above. In case, more than one person nominated distribution percentage not mentioned. ▪ Date of Birth and relation is very important information in case of nomination. In case of nominee is a minor, details of guardian to be obtained. However, in some cases it has not been obtained by branch, found missing/not filled/partially filled. ▪ In case of outside customer, permanent address found different than OVD. Branches are taking letter from employer and that address mentioned in CBS as permanent address, instead of correspondence address. ▪ In case of different address than OVD, Branch has not obtained other address proof. ▪ Other documents in case of non-individual accounts as per KYC guidelines, branches are not obtaining. Or Documents are incomplete. ▪ Undertaking/Confirmation in case of current a/c that not maintaining/enjoying current a/c/credit facility with other Bank or Financial Institute. ▪ In case of non-individual accounts, branches are not linking CIFs with account, within 3 to 4 days CIFs became inactive, it cannot be activated at a later date. New CIF has to be opened and to be linked with account. In such case all the formalities to be repeated. Duplication of work at branches as well as at LCPC. ▪ In all the cases, signature in capital letters not allowed, hence it should be ensured. ▪ Authorised officials have not signed in form at some or all the places. ▪ An official has signed but SS Number not affixed, even not written manually. ▪ KYC documents not verified with original by the authorised official by affixing SS Number. ▪ In case of just confirmed officer PO/TO/JMGs who not having SS Number and single officer, respective RBO has to attested/certify his/her signature and same to be enclosed along with AOFs. But branches are not enclosing. ▪ Scanning size as prescribed not maintained by Branch. ▪ Branch are uploading documents other than mentioned (Part-I/II, Documents) ▪ Scanned copy of AOF and KYC documents should be legible. AOFs along with Part- I, II and other documents should clearly scanned by the branch to enable LCPC verification. Found that not properly scanned and images are not clear. As it can be verified, it has to be rejected. ▪ Customer’s signature not properly scanned/not appearing complete signature in CBS. ▪ In case of A/c opened through YONO, photograph uploaded by customer is not appropriate. Found as modelling photo, selfie, sitting on bike, wearing goggles, wearing cap/hat etc. which should not be accepted by Branch. Branch has to reject. Passport size photo for identification purpose to be obtained by branch, as per KYC guideline so as in case of need, it may be used to furnish authority.  Chapter-4:Non-Personalized Welcome Kits (NPWKs) ❖ What is Non-Personalised Welcome Kits (NPWKs)? Non-Personalised Welcome Kit (NPWKs) is kit issued to the customer immediately who is opening new account with Bank. ❖ What does NPWKs carry? ▪ Cheque Book ▪ INB Kit and details of URL for registration for Internet Banking ▪ ATM Card ▪ User Manual regarding use/Block of ATM Card ▪ Write up for generating PIN ▪ Pay-in-Slips ▪ Customer Care Contact Details like Toll free number, email, SMS, Bank Website, IVRS etc. ❖ Why NPWKs are important for the Bank? ▪ Issuance of NPWKs to the new customers immediately on opening of account itself is the USP for Bank. ▪ In one go, all the valuable items which are the immediate requirement of customers, will be available to them in first visit only. ▪ It will create a good impact among the customers in this competitive scenario. ▪ It is and immense opportunity for the Bank to improve customer service by issuing NPWKs to the new customers. ▪ It will also help to Bank in decongestion of branches by migrating them to alternate channels. To improve our Customer service it is imperative that Non personalised Welcome Kits should be issued to all customers at the time of account opening itself. The issue of Welcome Kit to customers which includes INB Kit & ATM card will also help in decongestion of branches by migrating them to alternate channels. Personalised Welcome Kits are issued to customers (who specifically request for them) by sending through speed post from LCPC after collating the cheque book and ATM card from the vendors. NPWK There should not be any Welcome Kit with ‘Hold’ status for more than 5 days Threshold limit fixed in NPWK by LCPC GITC directly NPWK to Branches through India Post. The report containing particulars of dummy accounts created along with cheque details will be downloaded from CDC Pendency of Welcome Kit will be monitored by Nodal Officer at LCPC. ❖ Process for Welcome Kit:  Defining Threshold and Monitoring of Welcome Kit inventory position of linked branches Indenting for NPWKs Blocking of dummy accounts in system Generation of Reports and File extracts Monitoring of Non-Personalized Welcome Kit Preparation and despatch of Welcome Kit for Personalized Welcome Kits Preparation and despatch of Non- Personalized Welcome Kits (NPWKs) Generation and Despatch of Welcome Letter & Nomination Letter Undelivered Welcome Letter & Nomination Letter Defining Threshold and Monitoring of Welcome Kit inventory position of linked branches In charge welcome kit shall define threshold limit of welcome kits for each branch Blocking of dummy accounts in system ▪ Once the list of branches is finalized, the officer concerned shall enter the relevant menu in the system for blocking dummy accounts. ▪ The officer shall then generate request for blocking accounts, for each branch in the list. ▪ Particulars of the accounts blocked will be recorded in a register. Generation of Reports and File extracts ▪ The report containing particulars of dummy accounts created along with cheque details will be downloaded from CDC and printed. ▪ Cheque extracts will be sent by workflow team at GITC directly to Centralized Security Printers, which print Cheque-books and after collating ATM Cards, despatch the NPWK to Branches through India Post. Monitoring of Non-Personalized Welcome Kit ▪ Pendency of Welcome Kit will be monitored by Nodal Officer at LCPC. ▪ There should not be any Welcome Kit with ‘Hold’ status for more than 5 days. Preparation and despatch of Welcome Kit for Personalized Welcome Kits ▪ Centralized Security Printing unit (outsourced vendor) will receive Circle wise file extract from the Workflow team at GITC in encrypted form. Preparation and despatch of Non-Personalized Welcome Kits (NPWKs) Cheque extracts will be sent by workflow team at GITC directly to Centralized Security Printers, which prints Cheque-book and after collating ATM Cards, despatches the NPWK to Branch through India Post Generation and Despatch of Welcome Letter &Nomination Letter ▪ At EOD, extract for Welcome letter and/or Nomination Facility (if any) will be generated at CDC & transferred by workflow team to Centralized Security Printers in encrypted form. ▪ Nomination Letters are despatched to customers by ordinary Post by Centralized Printers The Joint Custodian with Vault Teller rights (currently the Branch Accountant) will acknowledge the complete set of Welcome Kit 1.Non Personalised welcome kits are issued ?  a. At the time of opening the accounts b. After one month of opening the account c. After account opening forms are verified by LCPC d. By vendors directly to the customers 3.Where from the report containing particulars of dummy accounts created along with cheque details can be downloaded ? a. CDC b. LCPC c. LHO Site d. None of the above 4.There should not be any Welcome Kit with ‘Hold’ status for more than ? a. 5 days b. 7 days c. 3 days d. 2 days  Chapter-5: Foreign Accounts Tax Compliance Act (FATCA) and Common Reporting Standards (CRS) FATCA stands for the Foreign Account Tax Compliance Act. It is a new piece of legislation by US to help counter tax evasion in the US. A few points which are critical and important for the purpose of compliance with CBDT rules are enumerated below: i. An account reportable to USA is termed as US Reportable Account (FATCA). An account reportable to a country or territory outside India other than US is termed as Other Reportable Account (CRS). ii. FIs have to treat an account as a reportable account as on the date it is identified pursuant to due diligence procedure specified in sub-rule (3) to (8) of Rule 114H and, unless otherwise provided, information with respect to a reportable account will be required to be reported annually in the calendar year following the calendar year to which the information relates. There are two types of accounts under FATCA and CRS – Individual Accounts and Entity Accounts. Personal accounts are called individual accounts and non- personal accounts viz proprietorship, partnership, company, trust accounts etc. are called entity accounts. These accounts are subjected to due diligence at the time of opening of accounts to find out the reportable status. If the account holder has connection with US, the account becomes US Reportable Account. For account holders having connection with other countries, the accounts become Other Reportable Account. Further, based on the date of opening, accounts are classified as either “Pre-Existing” or “New”. The treatment of accounts as pre-existing or new is as per following criteria: a) “pre-existing account” means a financial account maintained by a reporting financial institution as of, (i) in case of a U.S. reportable account (FATCA), 30 June 2014; and (ii) in case of other reportable account (CRS), 31 December 2015. b) “New account” means a financial account maintained by a reporting financial institution opened on or after, (i) in case of a U.S. reportable account (FATCA), 01 July 2014; and (ii) in case of other reportable account (CRS), 01 January 2016 Change in Circumstances in Pre-Existing Accounts As per CBDT Rules, if there is a change in circumstances subsequently which results in one or more indicia being associated with the account, or the account becomes a high value account, then the reporting financial institution shall treat the account holder as resident for tax purposes of each such county or territory for which indicium is identified, unless the self-certification submitted cures the same i.e. making the account not reportable. Change in Circumstances basically means a previously non-reportable account becoming reportable at a later date due to change in one or more indicia like country of tax residence. FATCA rules mandate review of accounts only when they qualify value threshold of $50000. Accordingly, all pre-existing accounts having balance of more than $50000 have been uploaded in CBS. If any subsequent change in circumstances takes place in these accounts, they can be marked reportable in CBS. Similarly, any high value account identified in any calendar year can be marked reportable in CBS if there is subsequent change in circumstances, since all high value accounts are already uploaded in CBS. However, in respect of CRS, the Circles need to advise accounts on yearly basis in which, change in circumstances has taken place, for uploading in CBS. Due diligence in all those CIFs advised by Circle should be completed. The due diligence procedure for identification of reportable accounts in respect of entity accounts is different from that of Individual accounts. However, the fields/screens required and being developed for capturing/determining the status of the entity account for Pre-existing Entity Accounts and New Entity Accounts are same for both FATCA and CRS. The following type of entities will be reportable for FATCA & CRS. FATCA(US Reportable Account) 1. Non-Participating Financial Institution 2. A Non-Financial Entity ( NFE) that is a Specified US person 3. A non US entity with one or more controlling person which is a Specified US Person Due Diligence for New Accounts: The due diligence procedure involves capturing of the status of the account as US Reportable or Other Reportable or not reportable at the time of CIF creation itself. While no value threshold is prescribed either for Individual CRS New or Entity (FATCA & CRS) for reporting, Individual FATCA New accounts exceeding $ 50000 as on the last day of calendar year is taken for final reporting. In case of reportable accounts, TIN/ functional equivalent is mandatory wherever reportable country issues the same. Due diligence Procedure for Entity Accounts All entity accounts opened since 01.07.2014 are to be treated as New Entity Accounts. For accounts opened from 01.07.2014 up to date of on boarding, an alternate procedure was made applicable. Actual on boarding of accounts means opening of new account with FATCA & CRS compliant account opening forms/screens. Relationship Manager and his Roles and Responsibilities Branch Managers in branches up to Scale-V incumbency and one of the AGMs in DGM & above headed branches have been designated as Relationship Manager, FATCA & CRS. Apart from that, the official authoring the account opening is the designated Relationship Manager, FATCA & CRS. Accordingly, if there are more than one official handling account opening in the branch, all such officials will be the designated RM, FATCA & CRS in respect of the accounts being authorized by them for the purpose of opening the same. The Relationship Manager hasto ensure complete compliance with the due diligence procedure prescribed under CBDT Rules with respect to both pre- existing accounts as well as new accounts for FATCA & CRS for the purpose of correct reporting of US Reportable account (FATCA) and / or Other Reportable account (CRS). He has to send monthly report to the Controller once the accounts are identified Rule of aggregation of balances for FATCA For purposes of determining the aggregate balance or value of financial accounts held by an individual or entity, a reporting financial institution is required to aggregate all financial accounts (other than “excluded accounts” like accounts under Senior Citizens Savings Scheme Rules,2004 or a retirement or pension account or account opened by a court order or judgement) maintained by the reporting financial institution, or by a related entity, but only to the extent that the reporting financial institution’s computerized systems link the financial accounts by reference to a data element such as client number or taxpayer identification number, and allow account balances or values to be aggregated. Each holder of a jointly held financial account shall be attributed the entire balance or value of the jointly held financial account for purposes of applying the aggregation requirements. Currency Translation Rules Account in INR or in any permissible currency (other than $) shall be converted to $ at the end of the reporting period @ spot reference rates of the FEDAI. GENERAL KYC Stands for—Know your customer OVD stands for--- Officially valid document CBS SCREEN FOR DEBIT FREEZ SCREEN NUMBER—9093 PMLA Stands for---Prevention of money laundering act (2002) SPDI stands for----Sensitive personal data or information Section 3 of PMLA Act 2002 refers to ----- Offence of money laundering CDD ---Customer due giligence EDD--- Enhanced Due Diligence Smishing— Whiling-