Customer

Practices of Know Your Customer (KYC) Norms in Banking Sector
Practices in banks before penetration of Kyc
Origin of KYC concept
Practices in banks after introduction of kyc ( manikin by phase fraud if it has taken place improvement in kyc)
Annexure kyc requirements nether the four heads for individual (for Indian and for NRI) , sole proprietor, joint account, confederation firms, public limited companies, trusts, and HUF
Category| Sub category|
various(prenominal) | Resident Indian|
| Non resident Indian|
Non Individual| fillet of sole proprietor ship firms|
| Partnership firms|
| Public limited companies|
| Trusts|
| HUF|

Practices in banks before introduction of Kyc
Origin of KYC concept
The main purpose was individuality threat and identity fraud when it was introduced in late 1990s in United States. After 9/11 attack, the US govt. turned very strict to restrict money clean and terrorist financing and all the regulations were finalized by 2002 for KYC.
The US has made changes in its major legislations -- Bank Secrecy Act, USA Patriot Act, et cetera -- to strain KYC norms really effective for the banking sector.
RBI issued its first circular on kyc norms in 16th August 2002 containing guidelines on kyc norms and cash transactions.



The tonality points of this circular is as follows:
| | |
Guidelines for New Accounts(In this regard, a reference to a report on AML guidelines for banks, is made strengthening Kyc norms with AML focus and overly suggesting formats for customer profile, a/c opening procedures, illustrative angle of dip of suspicious activities etc; prepared by a working classify set up by IBA, is made).| Objective is two surface i.e. 1. ensuring customer identification and 2. Monitoring transactions of suspicious individualality| Customer identification is through the documents provided by the customer (or) earlier reference through existing account holder (or) person known to the bank. When documents are not available verification...If you want to take a full essay, order it on our website: Orderessay



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