While opening Bank Accounts, one the important check list is the adherence to Reserve Bank of India’s Master Circular – on Know Your Customer (KYC) norms / Anti-Money Laundering (AML) standards/Combating of Financing of Terrorism (CFT)/Obligation of banks under PMLA, 2002.
The circular can be accessed @ http://goo.gl/wHXv
One of major source of Bank Accounts was the salaried class. This class was attractive to
a) Shore up the Bank’s CASA Balances
b) Cross sell Retail Loans
c) Cross sell Demat Accounts
d) Cross sell Insurance Products
e) Cross sell Mutual Fund Products
In short, deepen the existing relationships.
In fact State Bank of India has opened exclusive Branches to cater to Salaried Account Holders.
This gives you an idea about the immense potential of Salary Accounts in the Banking Industry.
Reserve Bank of India, vide its notification http://www.rbi.org.in/scripts/NotificationUser.aspx?Id=6057&Mode=0 dt.26/10/2010, reminded Banks to adhere to the KYC/AML guidelines in letter and spirit.
The highlights of the Circular are : –
01) In addition to the certificate from employer, banks should insist on at least one of the officially valid documents as provided in the Prevention of Money Laundering Rules (viz. passport, driving licence, PAN Card, Voter’s Identity card etc.) or utility bills for KYC purposes for opening bank account of salaried employees of corporates and other entities.