Page 75 - DCOM208_BANKING_THEORY_AND_PRACTICE

Banking Theory and Practice

Notes iv. while carrying out due diligence, ensure that the procedure adopted will not result
in denial of banking services to the general public especially those who are
financially or socially disadvantaged.
2. Customer Identification Procedure: The fit requirement of customer identification
procedure is to be satisfied that

i. a prospective customer is who he/she claims to be,
ii. the second requirement of customer identification procedures is to ensure that
sufficient information is obtained on the nature of the business that the customer
expects to undertake, and any expected, or predictable, pattern of transactions and
The information collected will be used for profiling the customer,

iii. the identity is to be verified for:
(a) the named account holder;
(b) the beneficial owne;
(c) the signatories to an account; and

(d) the intermediary parties.
iv. the Customer Identification Procedures are to be carried out at the stages:
(a) While establishing a banking relationship
(b) When the bank feels it is necessary to obtain additional information from the
existing custome based on the conduct or behaviour of the account.
Documents to verify the name/identity of the customer:
(a) passport,

(b) PAN card,
(c) voter identity card,
(d) driving license with photograph,
(e) identity card,

(f) letter from a recognized public authority verifying the identity and residence
of the customer to the satisfaction of the branch official authorized to open the
account,
(g) confirmation/ letter from employer/ other bank (subject to satisfaction of the
branch official authorized to open the account).

Documents to verify the address are:
(a) Telephone Bill,
(b) Bank account Statement,
(c) Electricity bill,

(d) Ration Card,
(e) letter from employer to the satisfaction of the bank.
3. Monitoring of Transactions: Monitoring of transactions will be conducted taking into
consideration the risk profile of the account. Special attention will be paid to all complex,

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