Friday, 27 December 2019

BC / BF - 11 , Banking Fundamentals to Know for Students.

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What is Know Your Customer (KYC)?

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 the banks' services are not misused. Banks have to complete the KYC procedure while opening accounts and it has to be updated periodically. To open a bank account, one needs to submit 'proof of identity and proof of address together with a recent photograph.
The Government of India has notified six documents as 'Officially Valid Documents (OVDs) as proof of identity. These six documents are:-

1) Passport,
2) Driving Licence,
3) Voters’ Identity Card,
4) PAN Card,
5) Aadhaar Card issued by UIDAI
6) NREGA Card.

You need to submit any one of these documents as proof of identity. If these documents also contain your address, then it would be accepted as 'proof of address'. If the document you submit as proof of identity does not contain your address, then you will have to submit another officially valid document that contains your address.

If I do not have any of the documents listed above to show my 'proof of identity', can I still open a bank account? Yes. You can still open a bank account known as 'Small Account' by submitting a recent photograph and putting your signature or thumb impression in the presence of a bank official 'Small Accounts' have certain limitations such as:
1) Balance in such accounts at any point in time should not exceed Rs.50,000.
2) Total credits in one year should not exceed Rs.1,00,000.
3)Total withdrawal and transfers should not exceed Rs.10,000 in a month.
4) Foreign remittances cannot be credited to such accounts.

Having a Bank Account is not enough. The job is only half done. Start using your bank account regularly and reap the associated benefits that come with it learn banking and its benefits and embark on the wonderful endless journey of banking!

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Lendings-8 , Banking Fundamentals to Know for Students.

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