Top 5 Blunders While Taking A Home Loan
KYC is an order from Reserve Bank of India for client identification in any type of home loan. The target of the KYC rules is to forestall IRS evasion exercises in banks under the Prevention of Money Laundering Act 2002. Subsequently, the genuine character and gainful responsibility for, assets’ source, nature of borrower’s business, operations in the record in connection to the client’s business, and so on helps the banks to deal with their dangers. However, the subtle elements given by you to the bank under KYC is dealt with a secret.
Banks that require KYC
All banks require KYC structure topped off appropriately by the client. In fact in the event that you scan on web requesting Kotak Mahindra bank KYC structure, Citibank KYC or key structure Punjab national bank and so forth you can discover them and download on the web.
Legal Backing for verifying the identity of clients
Reserve Bank of India has issued rules to banks under Section 35A of the Banking Regulation Act, 1949 and Rule 7 of Prevention of Money-Laundering (Maintenance of Records of the Nature and Value of Transactions, the Procedure and Manner of Maintaining and Time for Furnishing Information and Verification and Maintenance of Records of the Identity of the Clients of the Banking Companies, Financial Institutions and Intermediaries) Rules, 2005.
Documents:
There are two parts of Customer Identification. One is building up personality and the other is setting up present private location.
Here is a concentrate from RBI site which points of interest the archives the bank could inquire.
Account of Individuals
| FEATURES | DOCUMENTS |
| Legal name | (i) Passport
(ii) PAN card (iii) Voter’s Identity Card (iv) Driving license (v) Identity card (subject to the bank’s satisfaction) (vi) Letter from a recognized public authority or public servant verifying the identity and residence of the customer to the satisfaction of the bank |
| Permanent address | (i) Telephone bill
(ii) Bank account statement (iii) Letter from any recognized public authority (iv) Electricity bill (v) Ration card (vi) Letter from employer (subject to satisfaction of the bank) **Anyone document that provides valid customer information |
Accounts of Companies
| FEATURES | DOCUMENTS |
| Name of the company | (i) Certificate of incorporation and Memorandum & Articles of Association
(ii) Resolution of the Board of Directors to open an account and identification of those who have authority to operate the account |
| Principal place of business | (iii) Power of Attorney granted to its managers, officers or employees to transact business on its behalf |
| The mailing address of the company | (iv) Copy of PAN allotment letter |
| Telephone / Fax Number | (v) Copy of the telephone bill |
Accounts of Partnership Firms
| FEATURES | DOCUMENTS |
| Legal name | (i) Registration certificate, if registered
(ii) Partnership deed |
| Address | (iii) Power of Attorney granted to a partner or an employee of the firm to transact business on its behalf |
| Names of all partners and their addresses | (iv) Any officially valid document identifying the partners and the persons holding the Power of Attorney and their addresses |
| Telephone numbers of the firm and partners | (v) Telephone bill in the name of firm/partners |
Accounts of Trusts & Foundations
| FEATURES | DOCUMENTS |
| Names of trustees, settlers, beneficiaries, and signatories | (i) Certificate of registration, if registered
(ii) Power of Attorney granted to transact business on its behalf (iii) Any officially valid document to identify the trustees, settlors, beneficiaries and those holding Power of Attorney, founders/ managers/directors, and their addresses |
| Names and addresses of the founder, the managers/directors and the beneficiaries | (iv) Resolution of the managing body of the foundation/association
(v) Telephone bill |
| Telephone / fax numbers |
Accounts of Proprietorship Concerns
| FEATURES | DOCUMENTS |
| Proof of the name, address and activity of the concern | (i) Registration certificate (in the case of a registered concern)
(ii) Certificate/license issued by the Municipal authorities under Shop & Establishment Act (iii) Sales and income tax returns (iv) CST / VAT certificate (v) Certificate / registration document issued by Sales Tax / Service Tax / Professional Tax authorities (vi) Registration / licensing document issued in the name of the proprietary concern by the Central Government or State Government Authority / Department. (vii) IEC (Importer Exporter Code) issued to the proprietary concern by the office of DGFT as an identity document for opening of bank account. (viii) The license issued by the Registering authority like Certificate of Practice issued by Institute of Chartered Accountants of India, Institute of Cost Accountants of India, Institute of Company Secretaries of India, Indian Medical Council, Food and Drug Control Authorities, etc. **These documents should be in the name of the proprietary concern. Any two of the above documents would suffice. |
