Abstract This paper outlines the regulatory framework and documentation requirements governing the Know Your Customer (KYC) process for opening various types of bank accounts in India. It integrates the provisions of the Prevention of Money Laundering Act, 2002 (PMLA) and the Reserve Bank of India (RBI) Master Directions on KYC, highlighting the risk-based approach, documentation…
Opening a bank account in India requires following specific rules and submitting valid documents. The procedure and documentation vary depending on whether the applicant is an individual, company, society, cooperative, or institution. This article explains the step-by-step requirements and includes easy compliance checklists for each category of account holder. 1. Opening Current Accounts for Clubs,…
RBI has been imposing heavy penalties on banks that have not complied or the account opened in contravention of various directions and instructions issued by it, which includes failure to obtain adequate documents for opening accounts, failure to carry out identification procedures, and failure to examine the control structure of entities. However, to help the…
The Government of India has amended the Prevention of Money Laundering (Maintenance of Records) Rules, 2005 to make the Know Your Customer (KYC) process more flexible and citizen-friendly. The amendment, notified on November 13, 2019, permits individuals to use their Aadhaar number for identification while declaring a current address different from the one recorded in…
1. Understanding Partnership Firms A partnership is one of the oldest and most common forms of business organization, where two or more individuals come together to carry on a business and share its profits and losses. Each partner contributes skills, capital, or resources and, in return, becomes jointly and severally liable for the firm’s debts…
As banking regulations continue to emphasize transparency, traceability, and compliance, account opening procedures for non-individual customers such as clubs, societies, and associations have become more structured and documentation-driven. Banks are expected to not only verify the legal standing of such entities but also establish a clear understanding of the individuals authorized to manage their financial…
Diamond Dollar Accounts (DDAs) are specialized current accounts denominated in US dollars, maintained with banks in India. These accounts are exclusively available to firms and companies engaged in the import and export of rough or cut and polished diamonds, coloured gemstones, and precious metal jewellery, whether plain, enameled (minakari), or studded with diamonds or other…
The closure of a bank account requires adherence to specific procedures to ensure compliance with banking regulations and institutional protocols. The following outlines the steps and requirements involved in the process: 1. Submission of a Written Request A written application must be submitted by the account holder to the branch where the account is maintained.…
Current accounts or SB accounts may be transferred from one branch of a bank to another without incurring any charges. When an account holder wishes to initiate such a transfer, a written request must be submitted—either to the current branch or the branch to which the account is to be transferred. Any unused cheque leaves…
Every applicant for opening current account must provide specific documents relevant to their entity type. Additionally, banks are required to perform a comprehensive Know Your Customer (KYC) verification for the entity and its key stakeholders, such as the proprietor, partners, or directors. KYC involves several steps to (i) establish customer identity (ii) understand the nature…