Banks’ Action For Non –furnishing of information required for KYC: Where the bank is unable to apply appropriate KYC measures due to non-furnishing of information and /or non-cooperation by the customer, the bank can consider closing the account or terminating the banking/business relationship after issuing due notice to the customer explaining the reasons for taking such a decision.We wish to inform you that SEBI has introduced some changes in guidelines on Know Your Client (KYC) norms.To ensure that the latest details about the customer are available, banks have been advised to periodically update the customer identification data based upon the risk category of the customers.Banks create a customer profile based on details about the customer like social/financial status, nature of business activity, information about his clients’ business and their location, the purpose and reason for opening the account, the expected origin of the funds to be used within the relationship and details of occupation/employment, sources of wealth or income, expected monthly remittance, expected monthly withdrawals etc.50,000/-) and the total credit in all the accounts taken together is not expected to exceed Rupees One Lakh (Rs. The introducer’s account with the bank should be at least six months old and should show satisfactory transactions.Photograph of the customer who proposes to open the account and also his address needs to be certified by the introducer, Or any other evidence as to the identity and address of the customer to the satisfaction of the bank.
Customer identification means identifying the customer and verifying his/her identity by using reliable, independent source documents, data or information.
If at any point of time, the balance in all his/her accounts with the bank (taken together) exceeds Rupees Fifty Thousand (Rs.
50,000/-) or total credit in the account exceeds Rupees One Lakh (Rs.
This step has been taken to make the KYC process investor friendly and to make it uniform across various SEBI regulated intermediaries in the securities market viz.
Mutual Funds, Portfolio Managers, Depository Participants, Stock Brokers, Venture Capital Funds, Collective Investment Schemes, etc.