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Vol. 4 Issue : 2 DECEMBER 2012-FEBRUARY 2013 BCSBI NEWS Since the last issue of ‘Customer Matters’, Parvatiya Gramin Bank joined the BCSBI fold. Following the amalgamation of some Regional Rural Banks, the total number of member banks is 126. BCSBI, recognizing the need to make bank officials aware of the Codes and the need to internalize them and make them a part of their daily functioning, continues its efforts in this direction. Shri P B Vaze addressing the participants at the Conference of Training Heads at Pune. Also seen in the photograph are (L to R) As Controlling Heads of branches can play an important Shri D G Kale, General Manager, RBI, Shri A C Mahajan, Chairman, role in disseminating information, BCSBI organised a BCSBI, Shri N Raja, CEO, BCSBI and Shri R L Sharma, Vice Principal, meeting with such officials of select banks, in and College of Agricultural Banking. around Ahmedabad, at Bank of Baroda’s Staff College Just as bank officials are required to be aware of the in Ahmedabad to discuss strategies for familiarizing Codes so that they are implemented in true letter and both officials and customers of banks about the Codes. spirit, there is a need to make customers aware of their The Chairman and Chief Executive Officer participated rights and responsibilities as embedded in the Codes. in the programme. Following the meet, it is hoped that To this end in view, BCSBI participated in Town Hall the officials play a pro-active role in dissemination of meets and awareness pogrammes organised by the Codes amongst staff and customers, through Andhra Bank at Lucknow. training programmes, e-learning modules and customer meets. Syndicate Bank at Mumbai. Pallavan Grama Bank at Cuddalore Central Madhya Pradesh Gramin Bank at Hoshangabad Narmada Jhabua Gramin Bank at Indore The Chairman addressed the participants at the Town Hall meet at Lucknow. Shri A C Mahajan, Chairman addressing the participants at the Conference of Controlling Heads at Ahmedabad. Also seen in the photograph (R to L) Shri D G Kale, General Manager, RBI, Shri N Raja, CEO, BCSBI and Shri Rajesh Kumar Banking Ombudsman, Ahmedabad. BCSBI arranged a Conference of Training Heads of member banks at the College of Agricultural Banking, Shri A C Mahajan, Chairman, BCSBI addressing participants at the Pune to discuss ways to enhance awareness of the Town Hall Meet organised by Andhra Bank at Lucknow. Also seen in Codes amongst operating staff and reduce gaps in the photograph (R to L) Shri S K Kalra, Executive Director, Andhra service delivery mechanism at branches / grass root Bank and Shri Vinay Varma, Zonal Manager, Andhra Bank, Lucknow. level. It is hoped that this session has a trickledown effect and training of staff in implementation of the BCSBI also participated in the customer awareness Codes becomes an integral part of training programmes programmes conducted by Banking Ombudsmen in in the banks. association with leading banks at - CUSTOMER MATTERS DECEMBER 2012-FEBRUARY 2013 Alwar in Rajasthan Since the campaign was launched, we have been Arani in Tamil Nadu receiving a number of queries about the Codes. We have also been receiving requests from some Aurangabad in Maharashtra customers of banks for copies of the Codes as their Bhilai in Madhya Pradesh bank has not been able to provide them with copies, Mehsana in Gujarat though they are expected to do so. Pala in Kerala Shillong in Meghalaya KNOW YOUR CUSTOMER (KYC) What is KYC? KYC is an acronym for ‘Know Your Customer’, a term that is used to describe the process of customer identification. KYC enables banks to know and understand their customers and their financial dealings so as to serve them better and prudently manage the risks of Money Laundering and Financing of Terrorism. KYC has two components - Identity and Address. While identity remains the same, the address may change and hence the banks are required to periodically update their records. Ms N M Shah, Senior Vice President addressing the participants at the Customer Awareness programme at Mehsana, Gujarat Banks need to obtain sufficient information necessary to establish, to their satisfaction, the identity of each A meeting of Micro and Small Entrepreneurs organised new customer, whether regular or occasional, and the by the Industrial & Manufacturers Association, Nasik purpose of the intended nature of banking relationship. was addressed by a senior BCSBI official. Why is KYC required? The Chief Executive Officer addressed and interacted The objective of the KYC guidelines is to prevent banks with the passing out batch of students of the Post being used, intentionally or unintentionally by criminal Graduate Programme in Banking and Finance elements for money laundering. KYC procedures conducted by the National Institute of Bank enable banks to know and understand their customers Management, Pune. and their financial dealings better which in turn help The Chief Executive Officer was also a member of the them manage their risks of Money Laundering and expert panel and participated in the discussion on Financing of Terrorism prudently. ‘Financial Literacy – Focus on Customer Perspectives’ at the seminar on Strategies for When will the bank require KYC to be done? spreading Financial Literacy – Role of FIs and Banks, The bank will carry out KYC procedure for- organised by the College of Agricultural Banking, RBI, Opening a new account Pune. Opening a subsequent account where documents BCSBI launched a media campaign through TV, Radio, as per current KYC standards have not been Print media and Internet to create / enhance awareness submitted while opening the initial account about the Codes amongst members of the public. The campaign was aimed at reaching out to customers Opening a Locker facility across the country and was carried out in multiple Issue of ATM/ Debit/Credit cards languages.The campaign included placement of Periodical updation advertisements in about 70 newspapers in various languages in different parts of the country. non-account holders approaching the bank for high Advertisements were telecast on 23 TV channels while value one-off transactions radio advertisements were broadcast across 47 centres Banks may also seek information / additional information through nine stations. Advertisements were also run on from existing customers based on conduct of the internet – MoneyControl.com, Google.com and Yahoo. account. in 2 CUSTOMER MATTERS DECEMBER 2012-FEBRUARY 2013 CUSTOMER MATTERS DECEMBER 2012-FEBRUARY 2013 What are the documents the bank will accept to of repute and when they are aware of the competent fulfill KYC norms? authority designated by the concerned employer to issue such certificate/letter. In addition to the certificate/ An indicative list of documents that banks may accept letter issued by the employer, banks have been advised to fulfill KYC requirements is given below. As proof of to obtain at least one of the officially valid documents identity and address must satisfy the bank, different (listed above) for KYC purposes for opening bank banks may prescribe different documents as per their policy. accounts of salaried employees of corporate and other entities. Documents If a person is unable to produce any document Identity (Legal • Passport name and any to establish his / her place of residence as he/ other names used) • PAN card she lives with his/ her parents? What should he/ • Voter’s Identity Card she do? • Driving licence The person will be required to submit documents to establish his / her identity along with a declaration from • Identity card (subject to the bank’s satisfaction) his / her father / mother that he/she is staying with him/ her along with a utility bill that is in his /her father’s / • Letter from a recognized public mother’s name, wherein the address is that indicated authority or public servant verifying the identity and residence of the in the account opening form. The bank may ask for any customer to the satisfaction of supplementary evidence like a letter received by the bank person through post for further confirmation. • Aadhar card / letter Is an introduction from an existing customer from • NREGA Card the bank where a person intends to open an account necessary to open an account with the Address • Telephone bill concerned bank? • Bank account statement No. A bank cannot insist on an introduction if the person • Letter from any recognized public is able to submit the requisite documents to establish authority his/her identity and address, to the satisfaction of the • Electricity bill bank. • Ration card Once KYC requirements are complied with while • Passport opening the account, can the bank ask for KYC • Aadhar Card / letter compliance from the account holder again? • Letter from employer (subject to Yes. To ensure that the latest details about the customer satisfaction of the bank) are available, banks have been advised to periodically • Rent Agreement duly registered with the State Government or update the customer identification data (including similar Registration Authority photograph/s) after the account is opened. Does a person need to submit documents to fulfill Will the bank accept a copy of the passport for KYC requirements when he/she transfers his/her establishing identity as also address? account from one branch of a bank to another Yes. If the address in passport is the same as that branch of the same bank? declared in the account opening form, the bank will No. KYC once done by one branch of the bank is valid accept the passport as valid proof of both identity and for transfer of the account within the bank as long as address. full KYC has been done for the account proposed to be transferred. The bank will accept the new address on Will a certificate from an employer serve as identity the basis of a declaration, subject to it being provided as well as address proof for opening an account? as documentary evidence of the new address within six Banks normally rely on certificate/letter of identity and/ months of the account being transferred.

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