PERIODICAL UPDATION OF KYC SIMPLIFIED: The Reserve Bank has revised its earlier instructions on peri

PERIODICAL UPDATION OF KYC SIMPLIFIED: The Reserve Bank has revised its earlier instructions on periodical updation of 'Know Your Customer' (KYC) and has advised banks as follows: a) They should continue to carry out on-going due diligence with respect to the business relationship with every client and closely examine the transactions in order to ensure that they are consistent with their knowledge of the client, his business and risk profile and, wherever necessary, the source of funds. b) Full KYC exercise should be done at least every two years for high risk individuals and entities. c) Full KYC exercise should be done at least every ten years for low risk and at least every eight years for medium risk individuals and entities. d) Positive confirmation (obtaining KYC related updates through email/letter/telephonic conversation / forms / interviews / visits, etc.), should be completed at least every two years for medium risk and at least every three years for low risk individuals and entities. e) Fresh photographs should be obtained from minor customers on their becoming major. · Risk review of customers: Risk review should be done periodically net less than once in 6 months ( 15th of May / Nov. · Banks to keep a record of cash transactions above Rs.10 lac. · Banks to send report of these transactions to Financial Intelligence Unit of India. Cash transaction report: CTR (covering amount above Rs.10 lac of single transaction of total of all transactions within a month) for each month to be sent by 15th of the next month. Individual transactions below Rs.50000 not to be reported. Suspicious transaction report (STR). to be submitted within 7 working days of occurrences. · Banks to maintain records of transactions for a period of min 10 years from date of transaction. Record of documents to be kept for min 10 years from date of termination of relationship. · Banks to issue TCs, DDs, MTs and TTs for Rs.50000 and above only by debit to customers' account. · Due diligence to be ensured for transactions of Rs.50000 and above in case non-customer transactions. · Banks are to appoint a Sr. Mgmt. Officer, to be designated as Principal Office responsible for monitoring and reporting. · Unique Customer Identification Code to be allotted to all new customers. Features of Basic Saving Bank account (RBI Aug 10, 2012): (1) it is subject to normal KYC compliance. Account opened as a small account, attracts conditions applicable to small a/c (2) it is normal banking service available to all. (3) No min balance (4) No max no. of deposits but max no. of withdrawals 4 in a month including ATM (5) No other account is allowed to be opened along with such account. If already opened, it is to be closed within 30 days. Customer Identity Document: Passport, PAN card, Voter I-Card, driving license, Identity card to bank's satisfaction, UIDAI letter, and letter of recognized public authority. (NAREGA job card for opening Small Accounts only) Address Documents: Telephone bill, bank a/c statement, electricity bill (even in name of relative with whom living), letter of recognized public authority, ration card, letter from employer, UIDAI letter, rent agreement is registered with Govt. / Registration Authority Imp: If identity document contains address, separate document not to be taken. Introduction: It is not to be insisted upon (RBI - Dec 10, 2012)