Q. What is KYC? Why is it required?
Response: KYC means “Know Your Customer”. It is a process by which banks obtain information about the identity and address of the customers. This process helps to ensure that banks’ services are not misused. The KYC procedure is to be completed by the banks while opening accounts. Banks are also required to periodically update their customers’ KYC details.
Q. What are the KYC requirements for opening a bank account?
Response: To open a bank account, one needs to submit a ‘proof of identity and proof of address’ together with a recent photograph.
Q. What are the documents to be given as ‘proof of identity’ and ‘proof of address’?
Response: The Government of India has notified six documents as ‘Officially Valid Documents’ (OVDs) for the purpose of producing proof of identity. These six documents are Passport, Driving Licence, Voters’ Identity Card, PAN Card, Aadhaar Card issued by UIDAI and NREGA Job Card. You need to submit any one of these documents as proof of identity. If these documents also contain your address details, then it would also be accepted as ‘proof of address’. If the document submitted by you for proof of identity does not contain address details, then you will have to submit another officially valid document which contains address details.
Q. If I do not have any of the documents listed above to show my ‘proof of identity’, can I still open a bank account?
Response: Yes. You can still open a bank account known as ‘Small Account’ by submitting your recent photograph and putting your signature or thumb impression in the presence of the bank official.
Q. Is there any difference between such ‘small accounts’ and other accounts
Response: Yes. The ‘Small Accounts’ have certain limitations such as:
· balance in such accounts at any point of time should not exceed Rs.50,000
· total credits in one year should not exceed Rs.1,00,000
· total withdrawal and transfers in a month should not exceed Rs.10,000
· Foreign remittances cannot be credited to such accounts.
Such accounts remain operational initially for a period of twelve months and thereafter, for a further period of twelve months if the holder of such an account provides evidence to the bank of having applied for any of the officially valid documents within twelve months of the opening of such account.
Q. Would it be possible, if I do not have any of the officially valid documents, to have a bank account, which is not subjected to any limitations as in the case of ‘small accounts’?
Response: A normal account can be opened by submitting a copy of any one of the following documents as Proof of Identity (PoI):
(i) Identity card with person’s photograph issued by Central/State Government Departments, Statutory/Regulatory Authorities, Public Sector Undertakings, Scheduled Commercial Banks, and Public Financial Institutions;or
(ii) letter issued by a gazetted officer, with a duly attested photograph of the person.
For Proof of Address (PoA), you may submit the following documents:
i. Utility bill, which is not more than two months old, of any service provider (electricity, telephone, post-paid mobile phone, piped gas, water bill);
ii. Property or Municipal Tax receipt;
iii. Bank account or Post Office savings bank account statement;
iv. Pension or family Pension Payment Orders (PPOs) issued to retired employees by Government Departments or Public Sector Undertakings, if they contain the address;
v. Letter of allotment of accommodation from employer issued by State or Central Government departments, statutory or regulatory bodies, public sector undertakings, scheduled commercial banks, financial institutions and listed companies. Similarly, leave and license agreements with such employers allotting official accommodation; and
vi. Documents issued by Government departments of foreign jurisdictions or letter issued by Foreign Embassy or Mission in India.
This, however, is not a general rule and it is left to the judgement of the banks to decide whether this simplified procedure can be adopted in respect of any customer.
Q. If my name has been changed and I do not have any OVD in the new name, how can I open an account?
Response: A copy of the marriage certificate issued by the State Government or Gazette notification indicating change in name together with a certified copy of the ‘Officially Valid Documents’ in the prior name of the person is to be furnished for opening of account in cases of persons who change their names on account of marriage or otherwise.
Q. Are banks required to categorise their customers based on risk assessment?
Response: Yes, banks are required to classify their customers into ‘low’, ‘medium’ and ‘high’ risk categories depending on their AML risk assessment.
Q. Do banks inform customers about this risk categorisation?
Response: No
Q. If I refuse to provide requested documents for KYC to my bank for opening an account, what may be the result?
Response: If you do not provide the required documents for KYC, the bank will not be able to open your account.
Q. Can I open a bank account with only an Aadhaar card?
Response: Yes, Aadhaar card is accepted as a proof of both identity and address.
Q. Is it compulsory to furnish Aadhaar Card for opening an account?
Response: No. you may furnish Aadhaar card or any of the other five OVDs for opening an account.
Q. Is introduction necessary while opening a bank account?
Response: No, introduction is not required.
Q. For which banking transactions do I need to quote my PAN number?
Response: PAN number needs to be quoted for transactions such as account opening, transactions above Rs.50,000 (whether in cash or non-cash), etc. A full list of transactions where PAN number needs to be quoted can be accessed from website of Income Tax Department at the following URL:
http://www.incometaxindia.gov.in/_layouts/15/dit/pages/viewer.aspx?grp=rule&cname=CMSID&cval=103120000000007541&searchFilter=&k=114b&IsDlg=0
Q. My KYC was completed when I opened the account. Why does my bank insist on doing KYC again?
Response: Banks are required to periodically update KYC records. This is a part of their ongoing due diligence on bank accounts. The periodicity of such updation varies from account to account depending on its risk categorisation by the bank. Periodic updation of records also helps prevent frauds in customer accounts.
Q. What if I do not provide the KYC documents at the time of periodic updation?
Response: If you do not provide your KYC documents at the time of periodic updation, bank has the option to close your account. Before closing the account, the bank may, however, impose ‘partial freezing’ (i.e. initially allowing all credits and disallowing all debits while giving an option to you to close the account and take your money back). Later, even credits also would not be allowed. The ‘partial freezing’ however, would be exercised by the bank after giving you due notice.
Q. How is partial freezing imposed?
Response: Partial freezing is imposed in the following ways:
· Banks have to give due notice of three months initially to the customers before exercising the option of ‘partial freezing’.
· After that a reminder for further period of three months will be issued.
· Thereafter, banks shall impose ‘partial freezing’ by allowing all credits and disallowing all debits with the freedom to close the accounts.
· If the accounts are still KYC non-compliant after six months of imposing initial ‘partial freezing’ banks shall disallow all debits and credits from/to the accounts, classifying them inoperative.
Meanwhile, the account holders can revive accounts by submitting the KYC documents.
BANK MEMBERSHIP
Q. Who can become the member of the bank?
● Any Individual Above the age of 18 years with permanent residence of J&K..
● Sole Proprietor/Partnership concern/Private limited Concern having permanent residence of J&K can become the member of the bank.
Q.What are the formalities required to become the member of the bank?
The below mentioned requirements are essential to become the member of the bank:
a) Membership Form duly signed by individual/Proprietor/Partners/Authorised signatory in case of Pvt. Ltd Co. along with duly attested State Subject Certificate.
b) Rs.100/- being the cost of four shares and Rs.10/- as admission fee and also must have Saving Bank account with any of branches of the bank with minimum balance of Rs.200.00.
c) Person having no Saving account in any branch has to purchase minimum of 20 shares amounting to Rs.500.00.
d) Two coloured recent passport size photographs duly signed on back of photograph by the concerned with name.
e) Photo Identity proof and permanent address proof.
Additional requirement for:
Partnership Concern:
f) Copy of Partnership Deed duly registered in competent court of law.
For Private Limited Concern:
In addition to point a,b,c,d & e the following enclosures are required:-
g) Memorandum of association.
h) Article of Association.
i) Authority to sign/operate.
j) Resolution of Board of Director.
NEFT FAQs
Q. What is NEFT System ?
National Electronic Funds Transfer (NEFT) system is a nation wide funds transfer system to facilitate transfer of funds from any bank branch to any other bank branch. The system uses the concept of centralised accounting system and the bank's account, that are sending or receiving the funds transfer instructions,gets operated at one centre.
Q. When will the beneficiary receive the money ?
The beneficiary gets the credit on the same Day or the next Day depending on the time of settlement.
Q.What is the information required ?
The essential information that the remitting customer has to furnish is: o Beneficiary details such as beneficiary name and account number. o Name and IFSC of the beneficiary bank branch.
Q.What is IFS Code (IFSC) ?
How it is different from MICR code ? Indian Financial System Code (IFSC) is an alpha numeric code designed to uniquely identify the bank-branches in India. This is 11 digit code with first 4 characters representing the banks code, the next character reserved as control character (Presently 0 appears in the fifth position) and remaining 6 characters to identify the branch.
Q.Is there any way a remitting customer can track the remittance transaction ?
The remitting customer can track the remitting transaction through the remitting branch only, as the remitting branch is informed about the status of the remitted transactions.At what time during the day/week the NEFT service is available? NEFT transactions will be sent to RBI based on the following schedule:
| Day | Start Time | End Time |
| Monday to Friday | 8:00 hrs | 18:30 hrs |
| Saturday | 8:00 hrs | 12:30 hrs |
Please note that all the above timings are based on Indian Standard Time (IST) only.
Q.What is AADHAAR Card?
AADHAR card is issued by Central Govt. to all citizens of India with a Unique Identification number (UIDN). AADHAR is a 12 digit unique number that stores demographic and biometric information of a Card Holder (With photograph). This is an acceptable proof of Identity and Address for opening Bank Accounts
The following data fields are covered on the AADHAR card.
Customers Name, Address, Gender, Age/Date of Birth, Mobile number, email address
Q.Why to get AADHAR?
Aadhaar card will facilitate the transfer of cash benefits directly to the accounts of beneficiaries without any middlemen being involved in the transfer of the government schemes.
Q.Who can get AADHAR?
Any resident in India, any age, any gender who satisfies the verification process laid down by UIDAI can enroll for Aadhaar Card.
Q. How to get AADHAR?
You can apply for an AADHAR card by submitting a detailed application (with residence proof and identity proof ) at the prescribed enrollment agency.
Q. What is Aadhaar Enabled Account?
AADHAAR ENABLED ACCOUNT can be offered by a Bank which is empanelled with NPCI . A customer has to submit a mandate to the Bank to link his/her Aadhaar number to his/her bank account for the availing the benefits of the various government schemes.
Q. Which are the Schemes covered under this Aadhaar Enabled accounts?
Some of the schemes which are covered under the Aadhaar Based Payment Services.
• Direct credit of subsidies from government that include LPG, Kerosene, Sugar etc
• Direct credit of welfare funds, pensions, scholarship, MGNREGA wages etc from government
Q. Why should I link my account to AADHAAR Number?
You will get a seamless credit of Govt. benefits and other credits like pension / salaries when you link your account to the Aadhaar Number.
Q. How to link the account?
a) If you do not have an account with CCB and have an Aadhar Card
You can open an Aadhaar Enabled Account with CCB Bank by submitting your AADHAR number and a mandate.
b) If you already have your AADHAAR Card then how to get your AADHAAR number linked to CCB Bank account
If you already have a AADHAAR card you have to fill up a prescribed mandate form and submit photo copy of your AADHAAR card to the bank for linkage.
c) If you don’t have the AADHAAR Card and you are the account holder of CCB Bank, then what is the process to get your card linked to your account
When you are applying for an AADHAAR Card you can mention our Banks 15 digit account number in the Aadhaar Card Application Form.
Q. What is a Mandate form?
It’s a letter format wherein you authorize the CITIZENS’ COOPERATIVE BANK to link your account with your Aadhaar Number.
Q. What data I need to provide on this mandate form?
You need to provide your 11 Digit CCB Bank Account number , 12 Digit Aadhaar number, your mobile number , your email id and self attested photo copy of the Aadhaar Card .
Q. In a joint account what is the procedure?
Both the account holders can link their Aadhaar Number to the joint account.
Q. I have applied for AADHAR card but not yet received?
Give your Aadhaar Letter or Aadhaar Acknowledgment receipt copy to CCB Bank for existing account or customer can open new account with this Aadhaar letter, subsequently need to submit Aadhaar number to enable their account as Aadhaar Enabled account.
Q. Can I register my Aadhaar Number with CCB Bank if I have already registered with another Bank? Which bank account will I receive my benefits ?
Yes, you can register your Aadhaar Number with CCB Bank even if you have already registered with another Bank, the Government Subsidy/Benefits will be received in last Bank Account that has been registered with NPCI, hence if CCB Bank account is the last Bank you have registered then you will receive all benefits in your CCB Bank account.
Q. Do I need to inform about these changes to Gas Agency/Aadhaar dept or any other Govt Agencies?
You only need to inform your Aadhaar Number and complete the formalities as prescribed by these agencies.
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