Sr.

No Title Page No

1 Introductioon 3

2 History 5

3 RBI follow-up 6

4 Guidelines 12

5 kyc policy 13

6 Monitoring of transaction 19

7 Global effect 22

8 Wire tranfer 23

9 Principle officer 25

10 kyc foor mutual funds 33

11 Research methodogy 41

12 Case study 50

13 Limitation 54

14 Conclusion 53

15 Questionnaire 55
INTRODUCTION

Know your customer (KYC) is the due diligence and bank regulation that
financial institutions and other regulateds companies must perform to
identify their clients and ascertain relavant information pertinent to doing
financial business with them. Know your customer policies have becoming
increasingly important globally to prevent identity theft fraud, money
laundering and terrorist financing. In a simple form these ruyles may equate
to answering twelve questions,but this is the tip of the iceberg and regulators
now expect much more.KYC should noot be thought of as a form to be
filled- it is a process to be undergone froom the start of a customer
relationship to the end.

One aspect of KYC checking is to verify that the customer is not on any list
of known fraudsters, terrorists or money launderers,such as the Office of
ForeignAssets Control'sSpecially Designated Nationals list.Beyond name
matching, a key aspect of KYC controls is tooo monitor transactions oof a
customer against their recorded profile, history on the customer's account(s)
and with peers.

Know Your Customer Processes are also employed by regular companies of

all sizes, for the purpose of ensuring their proposed agents', consultants' or
distributors' anti-bribery compliance. Banks, insurers and export credit
agencies are increasingly demanding that customers provide detailed anti-
bribery compliance.Banks,insurers and exports credit agencies are
increasingly demanding that customers provide detailed anti-corruption due
diligence information, to verify their probity and integrity.

With effect from 1st feb 2008, KYC is mandatory. till the time, one gets the
KYC refrence number; one cannot invest 50k or more in the Indian mutual
funds.

KNOW YOUR CUSTOMER - WHAT YOU MUST KNOW

Know Your Customer -KYC enables banks to know/understand their

customers and their financial dealing to be able to serve them better.

Meaning of Customer
For the purpose of Policy , a Customer' is defied as:
0 A person or enttity that maintains an account and/or has a business
relationship with the Bank;

1 One on whose behalf the account is maintainbed ( i.e. the beneficial

owner);

Beneficiaries of transactions conducted by professional intermediaries, such

as Stock Brocker, Chartered Accountants, Solicitors, etc. as permitted under
the law , and Any person or entity connected with a financial transaction ,
which can pose significant reputation or other risks to the Bank,say, a wire
transfer or issueopf a high value demand draft as a single transaction.

HISTORY
2 Worldwide Impact:
3 Thw main purpose of KYC norms was to restricing the
United money laundering torrorist financing when it was
 introced in late the 1990s States. The US govt. turned very
strict after 9/11 and all regulations were finalized before
2002 for KYC.

4 The US has made changes in its major legislations- Bank

Secrecy Act, USA Patriot Act- to make KYC norms really
effective for the banking sector.Taking a leaf out of the US
book, the Reserve Bank of India to directed all banks to
implementKYC guidelines for all new accounts in the 2nd
half of 2002. For existing accounts, imposing KYC norms
was a little difficult,so the RBI issued guidelines for the
same aat the end of 2004.
RBI Background:
The Reserve Bank of India (RBI) had issued a directive that bank should
draw up a time bound action plan for obtaining customer inderntification
documents under new KYC norms in respect of all the old accounts and
complete the entire exercise by 31.12.2004. Accordingly, the
Zones/Branches had been adviced to comply with the RBI directive as per
the action plan. All the Zones had confirmed compliance of the KYC norms
for all the accounts based on branch confirmations and the final certificate
was furnished by the Bank to the RBI in April,2005.

5 RBI Follow -up:

6 The Auditors were advised to select all types of accounts over a period
and submit their findings. It means that the Branches are not
complying with the KYC guidelines extremely careful and the
requirement of KYC compliance is not being taken seriously by some
branches.
 7 KYC Test Checks:

8 In the above scenario, as per the directions of the Top Managemnet ,

Inpection & Audit Dept. has carried out test checks at select Branches
in each Zone to check the extent of implementation of KYC norms.

9 The Auditors were advised to select all types of accounts over a period
and submit their findings.

10 It means that the Branches are not complying with the KYC
guidelines extremely careful and the requirement of KYC compliance
is not being taken seriously by some branches.

11 KYC Compliance Measures:

12 The primary objective of KYc guidelines is to prevent form being

used by criminal elements for MONEY laundering and terrorirt
activies and avert occurrence of fraunds.\

13 KYC procedures also enable banks to understand their customers and

their FINANCIALdealing better and there by facilitating prudencial
management of risks.

Following are measure for achieving full KYC compliance in all the
existing accounts as per the RBI directives:

Public Notice in News Papers:

14 RBI then published a general notice in newspapers in English and
Hindi at the Natinal level inviting the customer"attention to the need
to Urgently comply with the KYC requirements.

15 In order to ensure that all the territoties are covered , RBI also
arranged to publish the notice in local news papers of different States.

Branches should display this Notice prominently in the Branch premises and
confirm to their respectives Zonal Offices of having done so .
Identification of KYC Non- compliant Accounts:
16 The task of identifying accounts requiring KYC compliance at each
-branch shall be carried out by the zones oon priority. In order to
ensure that the exercise is done diligently, the scrutiny of accounts to
identify the KYC non-compliant accounts at a branch shall be done by
officer/deputed from a diffrent Branch.

17 Subsequent verification of KYC compliance of the accounts is

completed.

18 (Now days takes 8 to 9 days).The deputed Officers should verify all

types of accounts at the branches. The documents are required to be
obtained for all customers in caseof every individual,every
proprietor,each joint Account holder/Partner/Director/Trustee HUF
Member, each other Authorised signatory if any.Upon completion of
the task, the Officers should hand over a copy of the reprt to the
branch head with a copy to the respective Zonal office.

19 Branch Notice to KYC Non-compliant Customers:

20 Once the accounts are identified for KYC non-compliance and the
nature of the deficiency is established,Branch shall address a suitable
communication to each such identified account holder requesting for
submission of the neccesary documents for compliance of the KYC
requirements. The branch should ensure that any change of address
communited by the customer is properly recorded and the notice is
sent to the correct address. The customers may be given SEVEN
DAYS time for complying with the Bank's required. In caes the KYC
norms are not complied within the period stipulated therein the
accounts shall be frozen.

21 The Notice should be sent by Registered Post A.D and if it undeliverd

then the Branches should make efforts to contact the
 22 Customers and send fresh Notices to them at the correct address so as
to provide a fair opportunity to each customer for compliance with
KYC norms, before freezing the accounts.

Reporting of kYC non-compliant Accounts by Branches/Zones:

After the expiry of the notice period, the Branches shall submit thier reports
to the Zonal Offices within seven days. The zonal Offoices will consolidate
the reports of all the Branches in their zones and submit their report to RBI
within SEVEN Days in the same format.

Final Public Noice in News Papers:

23 Upon receipt of confirmation from all Zones regarding completion
of the KYC exercise menntionned above, RBI published a

24 Second and Final Notice in the news papers, Drawing the customers'
attention to the earlier newspapersnotice as well as the individual
noticesent by the Branches and their failure to comply with the KYC
guidelines spite the said notices. The Notices. shall give a deadline of
seven days to the customers for fulfilling the KYC documentation and
notify to them the transacations in their accounts shall be ceased and
accounts frozen after expiry of the deadline, if KYC compliance is not
fulfilled by that date.

25 On receiipt of intimation of publishing this notice,Branches, should

diisplay the Branch premises so tto draw the attention of the
customers to the urgency in the matter.

Freezing of KYC Non-compliant Accounts:

26 Accounts which remain non-compliant despite all the above
processand even after expiry of the deadline shall be frozen.

27 Situations may arise whereby in respect of accounts which are

 frozen,cheques may be presented across the counter/in clearing for
payment by third parties.Branches may,on case to case basis, allow
payment of such instruments by unfreezing the status.Care should be
taken to re-freezing the account after each such transaction .The act
of unfreezing and re-freezing shall be permitted only by the Branch
Head.Such arrangement may be allowed only for a period of one
month from the date of the first freezing Each time an account is
unfrozen for permitting operation, there spective customer should be
made aware of trhe urgent need to become KYC compliant without
which continuing operations would not be permitted and that Banks
action of allowing operations should be construed by the customer as
permission for any subsequent traansactions.

Activation of Accounts on KYC Compliance:

Let's chheck other aspects KYC.

28 To prevent the possible misuse of banking activites for anti-natinal or

illegal activities , the RBI has given various directives to banks.
Before giving any finance at branch level, making sure that the
person has no links with notified terrorist entities and reportting any
such 'suspect' accounts to the govt. Regular 'Internal Audit' by internal
and concurrent auditors to check if the KYC guidelines are being
properly adhered to or not by banks. Most important ,banks must keep
an eye out for all banking transactions and identify suspicious ones
accounts.

29 The RBI had also directed all banks to make a policy for
implementing 'Know Your Customer' and anti-money laundering
measures and remain fully compliant with given guidelines before
December31,2005. But there have been instances of lapses in the
implementation of KYC guidelines by several banks.That resulted
into the infamous IPO scam. since January 2006, the RBI has slapped
 penalties on several leading banks. Till date we have not come across
any case of money laundering, terrorist financing or transfer of funds
for anti-national activities, but in case of any more lapses in the 'Know
Your Customer' guidelines, the threat of the misuse of the banking
channels for anti-natinal activities always lurks around the corner.

GUIDELINE
General:

1) Banks should keep in mind that the information collected from the
customer for the purpose of opening of account is to be treated as
confidential and details thereof are not to make known for cross selling or
any other like purpose. Banks should, therefore, ensure that information
sought from the customer is relevant to the perceived risk,is not intrusive,
and is in conformity with the guidelines issued in this regard. Any other
information from the customer should be sought separately with his /her
consent and after the opening the account .

2) Banks should ensure that the provisions of Foreign Contribution

(Regulation)Act,1976 as amened from time to time, wherever applicable are
strictly adhered to.

KYC Policy:
Banks should frame their KYC policies incorporating the following four key
elements:

Customer Acceptance Policy:

Customer Identification Procedures:

Monitoring of Transaction:and
Risk management

Customer Acceptance Policy(CAP)

A) Every bakk should develop a clear Customer Acceptance Policy laying

down explicit criteria for acceptance of customers. The Customer
Acceptance Policy must ensure that explicit guidelines are in place on the
following aspects of customer relationship in the bank.

1. No account is openedin anonymous or fictious/be name(s);

2. Parameters of risk perception are clearly defined in terms of the nature

of business activity, location of customer and his clients,mode of
payments,volume of turnover ,social and financial status etc.

3. Documentation requirements and other information to be collected in

respect of different categories of customers depending on perceived
risk and keeping in mind the requirements of PML Act,2002 and
instructions/guidelines issued by Reserve Bank from time to time;

4. Not to open an account or close an existing account where the bank is

unable to apply appropriate customer due diligence measures i.e. bank
is unable to verify the identity and /or obtain docum ent required as
poer the risk categorisatioin due to non- co operation of the customer
or no reliability of the data/information furnished to the bank. It is,
circumstances, in which a customer is permitted to act on behhaf of
another person/entity, should be clearly spelt out in conformity with
the established law and practice of banking as there could be
occasions when an account is operated by a mandate holder or where
an account is opened by an intertmediary in fiduciary.

B) Banks should prepare a profile for each new customer based on risk
categorization. The customer profile may contain information relating to
Customer"identity, social/financial status, nature of business activity,
information about his client" business and their location etc.

C) It is important to bear in mind that the adoption of customer acceptance

policy and its implementation should not become too restrictive and must
not result in denial of banking services to general public, especially to those,
who are financially or sociallly dis advantaged.

Customer Identification Procedure (CIP):

Customer identification means identifying the customewr and verifying
his/her identitty by using reliable, independent source document documents,
data orinformation. Banks need to obtain sufficient information necessary to
establisah, to their satisfaction, the identity of each new customer, whethner
regular or occasional, and the purpose of the intened nature of banking
relationship. For customerts that are naatural persons, the banks should
obtain sufficient identification data verify the identity of customer, his
address/location and also his recent photograph.

For customers that are legal persons or entities, the bank

should

5. Verify the legal status of the legal person/entity through proper and
relevant document.

6. Verify that any person supporting to act on behalf of the legal

person/entity is so authorized and identify and verify the identity of
that person.

7. Understand the ownership contreol structure of the customer. Banks

may, howevewr, frame their own internal guideline based on thier
 experience of dealing suich persons/entities.

8. Banks can use any supplementary evidence such as a letter received

sthrough post for further verification of the address. While issuing
operational insstructions to the branches on the subjects, banks should
keep in mind the spirit of instructions issued by the Reserve Bank and
avoid undue hardship to individuals who are, otherwise, classified as
low risk customers.

Customer Identification Requirements

Indicative Guidelines

9. Trust/Nominee or Fiduciary Accounts: Banks should determine

whether the customer is acting on behalf of anothwer person as
trustee/nominewe or any other intermediary.If so,banks should insist
on receipt of satisfactory evidence of the identity of the intermediaries
and of the persons on whose behalf they are acting, as,also obtain
details of the nature of the trust or other arrangements in place. While
opening an account for a trust, banks should take reasonable
precautions to verify the identity of the trustee and the setters of
trust(including any person settling assets into the trust), greantors,
protectors, beneficiaries and signatories.

10. Accounts of companies and firms:

Banks should examine the control structure of the entity, determine

the source of funds and identify the natural persons who have a controlling
interest and who comprise the management. These requirements may be
moderted according to the risk percetion e.g. in the case of a public company
it will not be necessary to identify all the shareholders.
 iii. Client accounts opened by professional intermediaries:

When the bank has knowledge or reason to believe that the clent
account opened by a professional intermediary is on behalf of a single
client,that client must be identified. Banks may hold'pooled' accounts
managed by professional intermediaries on behalf of entities like mutual
funds, pension funds or oother types of funds.where funds held by the
inteermediaries ther are 'sub-accounts',each of them attributable to a
beneficial owner, all the beneficial owners must be identified. Where such
funds are co-mingled at the bank, the bank should still look through to b the
beneficial owners. Where the banks rely on the 'customer due
diligence'(CDD) done by an intermediary, they should satify themselves
that the intermediary is regulated and superised and has adequate systems in
place to comply with the KYC requirements It should be understood that
the ultimate responsibility for knowing the customer lies with the bank.

iv.Accounts of Policially Exposed Persons(PEP) resident outside

India:

Politically exposed persons are individuals,who are or have been entrusted

with prominent public functions in a foreign country. e.g. Head of States or
of Govt., senior politicians,senbiorGovt.,/judicial/military officers, senior
executives of state-owned corporaations, imporatnt pollitical partyofficials,
etc. Banks should gather suffient information on any person/customer of this
category intending to establish a relationship and check all the information
available on the person in the public domain. Banks should verify the
identity of the person and seek information about the sources of funds before
accepting the PEP as a customer.

v) Accounts of non- face -to - face customers:

With the introduction of telephone and electronic banking , increasingly

accounts are being opened by banks for customers without the need for the
customer to visit the bank branch. In the case of non-face-to-face
customers,apart from applying the usual customer identification procedures,
there must be specific and adequate procedures to mitigate the gigher risk
involved. Certificatiuon of all the documents presented should be insisted
upon and, ifnecessary, additional documents may be called for.

Monitorning of transactions
30 on going monitoring is am essential element of effective KYC
procedures. Banks can effectively control and reduce their risk only if
they have an understanding of the normal and reasonable activity of
the customers so that they have the means of identifying transactions
that fall outside the regular pattern of the activity. However, the extent
of monitorning will depend on the risk sensitivity of the accounts.
Banks should pay special attention to all complex, unusually large
transacvtions and all unusual patterns which have no apparant
econmic or visible lawful purpose. Banks may prescribe threshold
limits for a particular category of accounts and pay particular attention
to the transactions which exceeds these limits. Every bank should set
key indicators for such as the country of origin, sources of funds, the
type of transactions involved and other risk factors. Banks should put
in place a system of periodical review of risk categorization of
accounts and the need for applying enhanced due diligence measures.

Types of risks involved in KYC.

There are five types of risks that an effective KYC policy can help to
mitigate:

31 Reputational

32 Operational

33 Legal

34 Financial

35 Concerntration
Reputational risk:

The Reputational of a business is usually at the core of its success. The

ability to attract good employees, customers, funding and business ids
dependent on Reputation. Even if a business is otherwise doing all the right
things, if customers are permitted to undertake illegal transactions through
that business, its could be irreparably damaged. A strong KYC policy helps
to prevent a business from being used as a vehicle for activities.

Operational risk:

THis is the risk of direct or indirect loss from, faaulty or faiuled internal
processes, management and systems. It ,today's competitive
environment,Operational excellence is critical for competitive advantage. If
a KYC policy is faulty or poorly implemented, then operational resources
are wasted, there is an increased chance of being used by criminals for
illegal purposes, time and money is then spent on legal and investigative
actions and the businbess will be viewed as operationally unsound.

Legal risk:
if a busiess is used as a vehicle for illegal activity by customers, it faces the
risk of fines, penalties, aninjunction an even forced discontinuance of
operations. Apart from regulatory risk, involvement in illegal activities cuold
lead to third party judgement and enforceable contracts. Due to the nature of
business, these risks can never entirely be eliminated. However, if a business
does nott have an effective KYC policy, it will be inviting legal risk. By
stirictly implementing and following a kYC policy, a business can mitigate
legal risk to itself and its staff.
Financial risk :

If a business does not adequately identify and verify customers,it may run
the risk off unwittingly allowing a customer to pose as someone they are
not. THe consequences of this may be far reaching . IF a business does not
know the true identity of its customers, it will also be difficult retrieve any
money that the customer owes.

Concertration risk:

This types of risk occurs on the assets side of a business if there is too much
exposure to one customer or a group of related customers. it also occurs on
the liabilities side if the business holda large concentrations of funds from
one customer or group (in which case it faces liquidity risk if these funds are
suddenly withdrawn)

GLOBAL EFFECT

The golbal banking sector is continually battling against fraudulent

gangs aqnd individuals, from online banking to credit and debit card .In
2008 UK bank fraud losses totaled $53 million.As with card fraud , UK
online banking customers are not liable for fraud losses as al;l banbks have
published online guarentees thsat state, providing a customer does not
breach thier terms and conditions, they will not be held liable for anylosses.
Recently it was reported that UK credit and debit card fraud losses $440m
in 2009. Official fig. from the trade body UK payments A ssociation indicate
that online banking fraud increased to $59.7 million in 2009. THis was an 18
% increase on the year before and more than a doubling since 2007 when
there were $22.6 million of loss.\

IT is imperative for banks to confirm the indentity of all their customers

(Know Your Customer_KYC) and employees Know Your Employees-KYE);
this not only ensure legal/ regulatory compliance but reduces businee risk.

WIRE TRANFER

Banks use wire transfer transfer as an expeditious meethod for transferring

funds between bank accounts. Wire tranfer inclde transactions occuring
within the national boundaries of a country or from one country to another.
As wsire transfers do not involve actual movement of currency , they are
considered as a rapid and secure method for transferring value from one
location to another.

Banks use wire transfers as an expeditious method for transferring funds

between bank accounts. The wire transfer could be domestic or cross
border. The beneficiary and originator could also be the same person.

Domestic wire transfer means any wire transfer where the originator and
beneficiary are located within the same country. A transaction
involving a chain of wire transfers that take place within the borders of a
single country is domestic wire transfer even though the system used for
effectin the transaction is located outside the country.

Cross-border transfer means any wire transfer where the originator and
the beneficiary bank or financial institution are located in different
countries. It may include any chain of wire transfers that has at least one
cross-border element.

Wire transfers, because of its capability of transferring funds

instantaneously between geographies, have become the preferred mode
of transfer of funds across the globe. In addition, because of the lesser
human intervention in the transfer and hence lesser scrutiny, it also
becomes a preferred route for criminals and terrorists to transfer their
funds. To address this, FATF in its Special Recommendations to combat
terrorist financing made recommendations of some minimum requirements
for the wire transfers. RBI vide its circular dated 13 April 2007 implemented
the recommendations in the banks in India.

Requirements for Domestic Transactions:

(a) Information accompanying all domestic wire transfers of Rs.50000/-

(Rupees Fifty Thousand) and above must include complete originator
information i.e. name, address and account number etc., unless full
originator information can be made available to the beneficiary bank
by other means.

(b) If a bank has reason to believe that a customer is intentionally

structuring wire transfer to below Rs.50000/- (Rupees Fifty Thousand)
to several beneficiaries in order to avoid reporting or monitoring, the
bank must insist on complete customer identification before effecting

KYC & AML Guidance Notes For Banks

The transfer. In case of no cooperation from the customer, efforts

should be made to establish his identity and Suspicious Transaction
Report (STR) should be made to FIU-IND.
(c) When a credit or debit card is used to effect money transfer, necessary
information as (a) above should be included in the message.

Requirements for Cross-border Transactions:

(a) All cross-border wire transfers must be accompanied by accurate

and meaningful originator information.

(b) Information accompanying cross-border wire transfers must contain

the name and address of the originator and where an account exists,
the number of that account. In the absence of an account, a unique
reference number, as prevalent in the country concerned, must be
included.

(c) Where several individual transfers from a single originator are bundled in
a batch file for transmission to beneficiaries in another country, they may be
exempted from including full originator information, provided they include
the originator's account number or unique reference number as at (b) above.

Inter-bank transfers and settlements where both the originator and

beneficiary are banks or financial institutions are exempted from the abov
requirements.

Role of Ordering, Intermediary and Beneficiary Banks

(i) Ordering Bank

An ordering bank is the one that originates a wire transfer as per the
order placed by its customer. The ordering bank must ensure that
qualifying wire transfers contain complete originator information. The
bank must also verify and preserve the information at least for a
period of ten years.

(ii) Intermediary Bank

For both cross-border and domestic wire transfers, a bank processing

an intermediary element of a chain of wire transfers must ensure that
all originator information accompanying a wire transfer is retained
KYC & AML Guidance Notes For Banks
with the transfer. Where technical limitations prevent full originator
information accompanying a cross-border wire transfer from remaining
with a related domestic wire transfer, a record must be kept at least
for ten years (as required under Prevention of Money Laundering Act,
2002) by the receiving intermediary bank of all the information received
from the ordering bank.

(iii) Beneficiary Bank

A beneficiary bank should have effective risk-based procedures in

place to identify wire transfers lacking complete originator information.
The lack of complete originator information may be considered as a
factor in assessing whether a wire transfer or related transactions
are suspicious and whether they should be reported to the Financial
Intelligence Unit-India. The beneficiary bank should also take up the
matter with the ordering bank if a transaction is not accompanied by
detailed information of the fund remitter. If the ordering bank fails to
furnish information on the remitter, the beneficiary bank should consider
restricting or even terminating its business relationship with the ordering
bank.

While the information as required above will enable banks to furnish the
details to authorities in an expeditious manner for investigation or
prosecution of money laundering or terrorist financing cases, the beneficiary
banks also should analyse the data to find out any unusual/ suspicious
activities which they may consider reporting to the FIU-IND India.

PRINCIPAL OFFICER

A) Banks should appoint a senior management officer to be designed as

Principal officer.Principal officer shall be located at the head/corporate
office of the bank and shall be responsible for monitoring and reporting of
all transactions and sharing of information as required under the law. He will
maintain close liaison with enforcement agencies, banks and any
otherinstitution which are involved in the fight against money laundering
and combating financing of terroriom.
B) The Principal Officer will be responsible for timely submission of
CTR,STR and reporting of counterfeit notes to FIU-IND.

FACTOR THAT REQUIRE THE NEED FOR INDENTITY

AND ADDRESS PROOF

The identification of a customer is a very critical process with a view to

protect the customer interests by preventing from fraudsters who may use
the name, adderss and forgo signature to undertake by name/ illegal business
activities, encashment of stolen drafts, cheques, dividend warrants, etc. This
also helps to safeguard banks from unwittingly used for the transfer of
deposit of funds derived from criminal activity or for financing terroriem.
Identification of customers will also help to control financial frauds,
identify money laundering and suspicious activities, and for
scrutiny/monitoring of large value cash transactions.

EVOLUTION OF KYC REQUREMENTS

No, KYC requirements have always been in place and Banks have been
taking KYC documents in accordance with the guidelines issued by RBI
from time to time.RBI has revisited the KYC guidelines in the context of
recommentatins made by the Financial Action Task Force (FATF) on Anti
Money Laundering Standards and on Combating Financing of Terrorism and
enhanced the KYC standards in line with internatiuonal benhmarks.

REGULATORY AND LEGAL REQUIREMENTS ABOUT

KYC
Regulatory:
In terms of the guidelines issued by the Reserve Bank of India (RBI)on
Novembewr29,2004 on Know Your Customer(KYC) Standards-Anti Money
Lauandering (AML) Measures,all banks are required to put in place a
comprehensive policy framework covering KYC Standards and AML
Measures.

Legal:
The Prevention of Money LaunderingAct,2002(PMLA) which came
into force from July 1, 2005 (after "rules" under the Act were formulated and
published in the OfficalGaztte) also requires Banks,Financial Institutions
and Intermediarries to ensure that they follow certain minimum standards of
KYC and AML as laid down in the Act and the "Rules" framed there under.

APPLICATION OF KYC

KYC will be carried out at the following stages:

36 Opening a new account

37 Opening a subsequent account where documents as per current KYC
standards not been submitted while opening the initial accoun
38 Opening a Locker Facility where these documents are not available
with the bank for all the Locker Facility holders
39 When the bank feels it necessary to obtain additional information
from existing customers based on conduct of the account
40 When there are changes to signatories, mandate holders, beneficial
owners etc. KYC will also be carried out in respect of non-account
holders approaching the bank for high valueone-off transactions.

PERSON RESPONSIBLE FOR KYC PURPOSES IN

BANK
The contact point for the customer in the bank will be Relationship
Manager/the official who opens the account and who is in touch with the
customer for all transactions.

ABOUT MONEY LAUNDERING

Money Laundering refers to conversion of money illegally obtained to

make it appear as if it originated from a legitimate source..Money
laundering is being employed by launderers worldwide to conceal
criminal activity associated with it such as drugs/arms trafficking,
terrorism and extortion.
All crimes that produce a financial benefity give rise to money
laundering.

MONEY LAUNDERING-ISSUES RELATED WITH

OPENING BANK ACCOUNTS

The first step in the laundering process for criminals is to get their money
into an account with a Bank, often using a false identity and address. The
funds so deposited will be transferred to other accounts locally or abroad
or used for buying goods or services.

These trasactions would appear to be like any legally earned money and
beecomes difficult to trace it back to its criminal past. Banks under law
should not only prevent this, but should stop criminals who wish to use
the banking channel to launder the ill-gotten money from illegal/ criminal
activities.

AFFECT OF MONEY LAUNDERING ON CUSTOMERS

A key defense against money laundering is to prevent accounts being
opened in false identities. Anyone wishing to open an accoun will
therefore be asked for proof of their identity and address. These
documents have to be essentially obtained irrespective of the type of
account to be opened and the purpose for which the account is opened
for.
The fact that these documents are asked for opening of account does not
mean that you are suspected of money laundering. Criminals try to
appear to be normal law -abiding customers, foe ex. they may try to open
a no. of accounts using small amounts of money. Hence it is necessary to
identify all prospective account holders or customers. Anybody including
a criminal couunld falsely use your identitty documemts are not obtained.

PROOF OF INDENTITY REQUIREMENT

The best identification documents are those which are issued by a Govt.
authority, which should have a photograph, address and signature. You
may provide one single document which can establish your identify and
address or two or more documents. For individual documents like copy
of the passport,Election Identity Card,Driving License, Permanent
Account Number(PAN) card, etc. would be sufficient for the purpose of
establishing the identity, addess and signature.Similarly, for other entities
like firms, companies,trusts,etc. documents like Partnership Deed,Trust
Deed,Memorandum &Articles of Association,Certificate of
Incorporation, Registration and Service Tax,License under Shops and
Establishment Act, etc. would be applicable and the branch/ sales staff/
call center would be able to help you in providing the details of the list of
approved documents.

CONSEQUENCES OF NOT PROVIDING KYC

INFORMATION IN BANKS
The Bank will be entitled to refuse to open the account (if you are a
prospective customer) or discontinue its relationship with you citing
non-providing ofKYC information documents(if you are an existing
customer).If you however, require reasonable time to furnish certain non-
critical documents you can approach the branch/sales staff.

GUIDELINES FOR SMALL CUSTOMERS

While the internal procedures of the Bank and the guidelines of RBI
require that satisfactory proof of customer identity and addess,RBI has
simplified the KYC procedure with the objective of greater financial
inclusion,i.e. making available the basic banking facilities to those
persons who intend to keep balances not exceeding Rupees Fifty
Thousand (rs.50000) in all their accounts taken together and the total
credit in all the accounts taken together is not expected to exceed Rupees
One Lakh(Rs.100000/-) in a year.

Bank can also help prevent crime against yourself and others by
maintaining the confidentiality of your account details and documents.

INDIA REGULATIONS ON PREVENTION OF MONEY

LAUNDERING
41 A customer must know Under the Prevention of Money
Laundering Act (PMLA)2002,and the Rules thereof, the banks are
required to report:
42 All cash transactios (deposits and withdrawals)of the value of more
than Rupees Ten Lakh s or equivalent thereof in foreign currency.
43 All series of cash transactions integrally connected to each other,
which have been vaued below Rupees Ten Lakhs or its rquivalent
in foreign currency where such series of transactions have taken
place within a month and the aggregate value of such transactions
exceeds rupees Ten Lakhs.
44 All cash transactions were forged or counterfeit currency notes or
 Bank notes have been used as genuine and where any forery of a
valuable security has taken place;
45 All suspicious transactions whethere or not made in cash and by
way of as mentioned in the Rules.
46 Under regulatory instructions issued by the Reserve Bank of India
in consultation with the Govt. of India and Indian Bank's
Association
47 Demand draft, mail transfers and travelers cheques for Rs.50000/-
and above can be paid by banks only by credit to the customer's
account or through other banking channels and not in cash.

KYC FOR MUTUAL FUNDS

With effect from January 1,2011, all categories of investors

irrespective of amount of investment in Mutual Funds are required to
comply with KYC norms under the Prevention of Money Laundering
Act 2002(PMLA) for carrying out the transactions such as
new/additional purchase, switch transactions, new SIP/STP/DTP
registrations received from effective date i.e. January 1,2011.Thus,
with effect from 1st January 2011.any investor (all applicants in a
folio)investing into mutual funds through the Investment Service
account would be required to be KYC compliant with CVL(CDSL
Ventures LTD) without which the transactions may be liable to be
rejected by the respective mutual funds houses.

MF investor's line up for KYC compliance

Mumbai: Huge rush in complying with Know Your

Customer(KYC)norms for the mutual funds industry is leading to an
increase in its processing time.The KYC process which earlier used
to take a day earlier now takes up to 8-10 days CDSL Venture (CVL),
a subsidiary of (Central Depository Services), is carrying out the
process of KYC and is receiving over 20000-25000 KYC applications
on a daily basis. Earlier, it used to be 800-1000 applications.
Association of Mutual Funds in India. (AMFI) had directed all the
funds houses to comply with KYC norms with effect from January 1,
2011. As per rules, all fresh MF investments have to comnply with
KYC norms from this yerar. And with 50 Lakhs mutual fund investors
in the country, MFs arte facing the challenge of bringing every one
under the KYC ambit. In urban cities it is taking one-two days to
process KYC.... procedures,while in semi- urban and rural areas they
are taking as long as 8 days.

"we are losing outr many investors due to delay in completing the
KYC norms. Usually, this is the time, retail investors start investing
into equity linked saving scheme (ELSS)funds for gaining tax
advantages," said a leading distributor on condition of anonymity.
WaqarNaqvi,CEO of Taurus MF said, Due to compulsory KYC, the
appolication volumes have gone up in the last few days". He however
added that the suddenrush might have led to some technical
glitches,which could be ironed outover a period of time.

FEW QUESTIONS ABOUT KYC RELATED TO

MUTUAL FUNDS:

1. What are the KYC requirements for a Mutual Fund Investor?

Answer-Individual investors will have have to produce a Proof of
identity(Photo PAN card copy or PAN card copy and copy of the
passport, driving llicense, etc.)and Proof of Addess (any valid
documents listedinspection B of the KYC Application Form
Individuals.)Non-Individual Investors will have to produce certain
documents pertaining toits constitution/ registration to fulfill the KYC
process.A list of Mandatory Certified Documents to be submitted can
be found in section C of the KYC application form for Non-
Individual Investors.

2.Where and how does one get to be KYC Compliant ?Does the
investor have to repeat the KYC process with every Mutual
Fund?
Answer- The Association of Mutual Funds of India (AMFI) has
facilitated a centralised platform through CDSL Ventures Limited
(CDSL), a wholly owned subsidiary of Central Depository
Services(India) Limited , to carry out the KYC procedure on behalf
of all Mutual Funds. Once the KYC is duly completed in all regards,
the investor needs to produce a copy of the acknowledgement when
investing for the firsttime with a Mutual Fund. There is no need to
repeat the KYC process individually for each mutual fund.

3.What is a KYC Application Form?

Should the investor visit personally to obtain KYC Compliance?
Answer-A KYC Application Form has been designed for individual
and Non-Individual Investors separately.These forms are available on
the website of mutual funds, AMFI and Central Depository Services
(India)Limited(CDSL) If the investor is not in a position to visit
personally, the KYC Application Form along with the necessary
documents (including originals if the copies are not attested )can be
sent through the distributor or representative.

4.To who is KYC applicable ? Is there any exemption?

Answer-Currently, all investors (Individuals or Non-Individuals)who
wish to make an investment in a mutual fund scheme irrespective of
amount will be required to complete the KYC process. This would
also apply to new Systematic Investment Plan(SIP) registrations on or
after01 january 2011, irrespective of amount.

Joint Holders: Joint holders(including first, second and third if any,

are required ) to be individually KYC complaint before they can
invest with any Mutual Fund and copies of each holder's KYC
Acknowledgement must be attached to the investment application
form with any Mutual Funds.

Minors: In case of investments in respect of a Minor, the Guardian

should be KYC compliant and attach their KYC Acknowledgement
while investing in the name of the minor. The minor, upon attaining
majority, should immediately apply for KYC compliance in his/her
own capacity and intimate the concerned Mutual Fund(s), in order to
be able to transact, furthering his/her own capacity.

For transmission(in case of death of the unit holder): If the deceased

is the sole applicant, the claimant should submit his/her KYC
Acknowledgement in the request along with the other relevant
documents to effect the transmission in his/her favours.

5.How fdoes the investor transact in Mutual Fund after

completing the KYC process?
Answer: Investors must attach thier KYC Acknowledge along with
the Investment Application Form(S) Transacation Slip(s) While
investing for the first time in a mutual fund. Application Forms/
Transaction Slips not accompanied by KYC Acknowledgement are
liable to be rejected by the Mutual fund. If you do not obtain a KYC
Acknowledgement, you will not be able to invest in a mutual fund.

6.Once an account is opened with a Mutual Fund by the 1st,2nd

and 3rd holder after complting the necessary formalities and the
investor's return to make a fresh investment, do they need to
furnish the necessary documents again?
Answer- Investors must attach their KYC Acknowledgement along
with the Investment Application Form(s)Transaction Slip(s)while
investing for the first time in Mutual Fund.

7.What are the consequences of KYC cancellation/rejection?

Answer-In the event of any KYC Application Form being found
deficient for lack of information/ insufficiency of mandatory
documentation, further investments will not be permitted.

8.Does the KYC Acknowledgement have an expiry date?

Answer- No, Once the KYC Acknowledgement is obtained and
informed to a Mutual Fund, Itwill be registered against the folio and
quoted in all future account statements. The same will exist in
perpetuity, unless cancelled by CVL.

9.Are there any special requirements for an NRI?Is there any

special requirement for a PIO (Person of Indian Origin)?
Answer- Yes, In addition to the certified true copy of the passport,
acertified true copy of the address and permanent addess will also be
required. If any of the documents (including
attestations/certifications)towards proof of identity or address is in a
foreign language,they have to be translated to Englishfor
submission.The requirements applicable to an NRI will also apply to a
PIO. However additionally, he will need to submit a certified true
copy of the PIO Card.

10.Why does investor need to give his/her income details?How can

they be sure that it will not be misused?
Answer-As per PMLA,it is mandatory for Mutual Funds to obtain
financial status details from its investors. It is for this reason that the
income details are sought. Please notes that no proof/income
documents are required.The information given in KYC Application
Form will be treated in a confidential manner and used for regulatory
purposes,if called for.

ARE KYC NORMS CROSSING THE LIMITS?

Mumbai,July17 too much of anything is not good, or so the adage

goes. This is true in the case of banks enforcing Know Your Customer
(KYC) norms.With the ReserveBank of India penalishing several
banks for violating KYC norms, most banks are now applying them
with zeal, even at the cost of losing customers sometimes. The
mandatory details required under KYC norms are proof of residence
such as ration card , letter from employer or the housing society, and
proof of identity,which could be any photoidentity such as pass port,
voter ID card, PAN card,and driving licence. But customers often
facebanks asking for other personal details .Recently , local Mumbai
branch of Indian Overseas Bank asked customers for information
about their blood group, along with other details such as PAN number
and proof of residence, as part of KYC> but such personal details are
optional and it is not binding on the customer to provide them, said an
official from the bank.

KYC norms deter rural clients:

Another reason is Know Your Client(KYC)norms where every

account holder has to disclose relevant detail like photo identity,
addess proff,PAN card above a certain amount, etc. For rural people it
is very difficult to provide these details as a number of them arew not
litera.
especially not in English and documents are generally maintained in
English. If a rural person does not have his own residence, it is a
tedious job to prove his address.In that case, the person prefers not to
come to the bank and goes to the total money lender who does not
ask for such documentation. How can an old single woman arrange a
PAN card to go for a minimum fixed deposit?

Compliance Risk:

"But it is for the general good. There is a law and there is need to
follow a certain process.World over compliance risk is the biggest
risk,"he said. Bank officials point out that all application forms are
divided into two parts mandatory information and optional
information. The mandatoryinclues the ISA verification-Identity,
Signature and Address, said Mr. Ghotgalkar,Corporate Head, Retail
Banking , IDBI LtD. Other information, such as previous credit
history and details about the customer's assets are usually part of
optional information, which the customer need not reveal.

CUSTOMER EDUCATION/EMPLOYEE'S TRAINING/

EMPLOYEE'S HIRING :

Customer Education:
Implementation of KYC procedures requires banks to demand certain
information from customers which may be of personal nature or
which have never been called fore. This can sometimes lead to a lot
Questioning by the customer as to the motive and purpose of
collecting such information. There is, therefore,a need for banks to
prepare specific literature/pamphletsetc. so as to educate the customer
of the objectives of the KYC programmed.The front desk staff needs
to be specially trined to handle such situations while dealing with
customers.

Employee's Training :
Banks must have an on-going employee training programme so that
the members of the staff are adequately trained in KYC
procedures.Training requirements should have different focuses for
frontline staff,compliance staff and staff dealing with new customers.
It is crucial that all those concerned fully undewrstand the rationale
behind the KYC policies and implement them consistently.

Hiring of Employees:
It may be appreciated that KYC norms/AML standards?CFT measures
have been prescribed to ensure that criminals are not allowed to
misuse the banking channels. |It would, therefore, be necessary that
adequate screening mechanism is put in place by banks as an integral
part of their rewcruitment/ hiring process of personnel.

Purpose
1.Main purpose for doing so is to prevent future mal practice and
financial frauds.

2.Collection of appropriate data before transaction is must to have

idea about concern customer.

3.To aware customer time to time there must be need for training of
employee.

4.employee training is an imporant function that will keep all staff

Member "scurrent about policies, procedures and the technology used
in the department.

KYC IS NOW 'A MODERN DAY INTELLIGENCE ART

FORM:

A question that the Big B may not ask on KBC is:

What does KYC stand for?

A)kaun yaar crorepati
B)kentucky Yummy Chicken
C)Know Your Customer
D)Kieler Yacht Club?

No prize for the right answer.But penalty is huge if you don't know
your customer',especially in the world of finance.

Which is Why,the Indian Bank'Association (IBA) organzied a focued

briefing on "Compliance to KYC norms'.IBAs letter about the
programme exudes urgency.'With Financial Intelligence Unit(FIU)
formed in India, in tune with FATF (Financial action Task Force )
guidelines,and RBI (Reseve Bank of India) stepping up KYC
compliance pressures......KYC is nota one-time effort while signing up
a new customer, points out the IBA,"It is involves continuos
monitoring of customer behaviour as reflected through his
transactions with the bank.It is here that AML technology finds its
use."Even if a financial institution takes all reasonable steps to
determine the veracity of potential customer,it may still be held
responsible of that customer is subsequently determined to be engaged
incriminal or other illegal activities, "The banker would have to know
the source of funds, nature of customer's business, what constitutes
reasonablke account activity, and who the customer's customers are!

DIFFERENT FEATURES INCLUDED IN KYC TECHNOLOGY

Open source technolgy

* Google your investigation.

Community bank space

* Knowledge but lack of consistency.

*Fits the bill-cheap.

Keys

* Don't forgot to capture your trail.

*Information can be misleading- focus on the negatives.

List checking

*Checks names against the following:

*Internal lists
 *Other lists

Keys

*False positives choking the process

*Where to stop

Public data search tools

*Check names and entities against public data.

Community bank space

* Strong penetration
.
*Can be leveraged for other risks to the organization.

Keys

*Cost varies but can be prohibitive.

*Shelf-ware

*Information needs interpretation.

CIP solutions

*Information collection,management and retrival.

*Too many banks collect but fail to use.

Community bank space

 *Home grown solutions.

# Integration issues

*Leveraging other technologies to provide solution.

Keys

* Is the front- end collection leading to back-end anayses?

*Integration with account opening is a must.

OBJECTIVES OF STUDY

48 To know the KYC procedure adopted by the bank.

49 To know how KYC procedures help the banks in reducing non-
performing assets.
50 To know concepts ofKYC helps in indentifying the sources of funds
and to check the money flowing from restricted sources.
51 To study how banks control money laundering, theft, frauds through
KYC formats.

RESEARCH METHODOLGY

TYPE OF DATA:-There are two type of data i.e. Primary data and
secondary data. For carrying out this research study I need Primary Data.

METHOD OF DATA COLLECTION:- There are 4 methods For

collecting primary data.
52 interview method
53 Observation mewthod
54 Questionnaire method Schedule method

For carrying out this study I will use questionnaire as a method of data
collection.

SAMPLE AREA-Bhopal City

SAMPLE SIZE:- 3BANKS(SBI,AXIS BANK,KARNATAKA BANK)

SAMPLE DESIGN:- Stratified random Sampling

STATE BANK OF INDIA

HISTORY-The evolution of State bank of India can be traced back to

the first decade of the 19th century. It began with the establishment of the
Bank of Calcutta in Calcutta, on 2 June 1806. The bank was redesigned
as the Bank of Bengal,three years later, on 2 January 1809. It was the first
ever joint-stock bank of the British India, established under the
sponsorship of the Govtof Bengal.Subsequently, the Bank of Bombay
(establoshed on 15 April 1840) and the Bank of Madras (established on 1
July 1843) followed the Bank of BEngal. These three banks dominated
the modern banking scenario in India. until when they were amalgamated
to form the Imperial Bank of India ,on 27 January 1921.

55 An important turning point in the history of State BAnk of India is

the launch of the first Five Year of independent India, in 1951. The
Plan aimed at serving the Indian economy in general and rural
sector of the country, in particular. Until the Plan,the commercial
banks of the country, including the Imperial Bank of India,
confined their services to the urban sector. Moreover, they were
not eqipped to respond to the growing needs of the economic
revival taking shape in the rural; areas of the country. Therefore, in
 order to serve the economy as a whole and rural in particular,
theAll India Rural Credit Survey Committee recommened the
formation of a state- partnered and state- sponsored bank.

BRANCHES- The corporate centre of SBI is located in Mumbai.In

order to cater to different functions, there are several other
establishments in and outside Mumbai, apart from the corporate
center. The bank boasts of having as many as 14 local head offices
and 57 Zonal Offices, locatyed at major cities throught out India. It is
recorded that that SBI has about 10000 branches, well networked to
cater to its customers through out India.

56 ATM Services:

SBI provides easy access to money to its customers through more

than 8500 ATMs in India.

THE EIGHT BANKING SUBSIDIARIES ARE:

57 STATE BANK oF BIKANER AND JAIPUR(SBBJ)

58 STATE BANK OF HYDERABAD(SBH)
59 STATE BANK OF INDIA(SBI)
60 STATE BANK OF INDORE (SBIR)\
61 STATE BANK OF MYSORE(SBM)
62 STATE BANK OF PATIALA(SBP)
63 STATE BANK OF SAURASHTRA(SBS)

KEY MEMBERS OF THE BANK:

64 Shri.O.P.Bhatt-Chairman
 65 Shri. Sk.Bhattacharyya-MD &CC&RO
66 Shri.R. Sridharan-MD & GE(A&S)
67 Shri.D.Sundram.
68 Shri Dileep .C.Choksi.

MILESTONES OF SBI BANK:

69 The only Indian Bank to find a place in the Fortune Global 500 list-
Improved Ranking from 495 last year to 380 this year.
70 Reputation Institute, USA has ranked SBI 29th .
71 Awarded the "Bank of the Year- 2008 India " by the Banker Magazine,
London.
72 Ranked #1 in survey of Top 5 Companies in India in terms of
Financial Reputation by Wall Street Journal Asia.

AXIS BANK

HISTORY- Axis Bank was the first of the new private banks to have
begun operations in 1994, after the Govt. of India allowed new private
banks to be established. The Bank was promoted jointly by the
Administrator of the specified undertaking of the Unit Trust of India
(UTI-I), Life Insurance Corporation of India(LIC) and General Insurance
Cororation of India (GIC) and other four PSU insurance companies, i.e.
National Insurance Company Ltd., The New India Assurance Company
Ltd., The Oriental Insurance Company Ltd. and United India Insurance
Company Ltd.

73 The Bank today is capitalized to the extent of Rs.359.76 crores

with the public holding (other than promoters) at 57.79%.
74 The Bank's Registered Office is at Ahmedabad and its Central
Office is located at Mumbai. The Bank has a very wide network of
more than 853 branches and Extension Countries (as on 30th June
2009). The Bank has a network of over 3723 ATMs (as on 30th
June 2009) providing 24 hrs a day banking convenience to its
customers. This is one of the largest ATM networks in the country.
75 The Bank has strengths in both retail and corporate banking and is
commited to adopting the best industry practices internationally in
order to achieve excellence.

KEYS MEMBERS OF THE BANK:

76 Smt.Shikha Sharma-Managing Director & CEO

77 Shri.N.C. Singal- Director
78 Shri. J.R.Varma-Director

MILESTONES OF AXIS BANK:

79 UTI Bank re-brands itself as Axis Bank-JULY 07

80 Axis Bank ties up with Banque Privee Edmond de
Rothschild Europe for Wealth Management -September 07
81 Axis Bank gets AAA National Long-Term Rating From
Fitching Rating -December 07
82 Axis Bank launches Platinum Credit Caed, India's first
EMV chip based catrd - March -08

MISSION AND VALUES OF AXIS BANK:

83 MISSION:
84 Customer Service And Product Innovation tuned
todiverse needs of
85 individual and corporate clientele.
86 Continuous technology upgradation while maintaining
human values.
87 Progressive globalization and achieving internalional
standards.

88 Efficiency and effectiveness built on ethical practices.

89 CORE VALUES:
90 Customer Satisfaction through
 # providing quality service effiectively and
efficiently

#"Smile,it enhances your face values" is a quality

stressed on

#Periodic Customer Service Audits

91 Maximiztion of Stakeholder value
92 Success through Teamwork,Integrity and People

KARNATAKA BANK LTD.

HISTORY- Karnataka Bank Limited is a leading private sector bank in

India. It was incorporated on 18th February 1924 at Mangalore, a town
located in the kannada district of Karnataka. The bank emerged as a
major player during the freedom movement of 20th Century India.
During its process of expansion, the Karanataka Bank merged with other
banks like Srigeri Sharada Bank Ltd,Chitradurga Bank Ltd. and Bank of
Karnataka Bank has Chitradurga Bank Ltd. ANd Bank of Karnataka.
today, Karnataka Bank has emerged as one of thge top financial service
institution in India.

Karnataka Bank Limited, a leading 'A' Class Scheduled Commercial

Bank in India, was incorporated on February 18th, 1924 at Mangalore, a
coastal town of Dakshina Kannada district in Karnataka State.The bank
took shape in the aftermath of patriotic zeal that engulfed the nation
during the freedom movement of 20th Century India.ovewr the years the
Bank grew with the merger of Srigeri Sharda Bank Ltd., Chitradurga
Bank Ltd. and Bank of Karnataka. With over 85 years experience at the
forefront of provioding professional banking services and quality
customer services, we now have a national presence with a network of
449 branches spread across 20 states and 2 Union Territories.

Managed by a dedicatede & professional management team, we have

over 4,900 emplyees, 71,822 shareholders and over 3.7 million
customers.

Today,we have emerged as a leadinbg financial services institution in

India.

KARNATAKA BANK :- BRANCHES AND BUSINESS

Karnataka bank has expanded its reach to various parts of India, over
the85 years of its existence.Today, the bank has a total of 447 branches,
spread across 19 statesand 2 Union Territories, with a total business of
about Rs. 31,248 crore. The bank presently employees over 4,900
employees and is answerabl,es to about 71,822 shareholders and over 3.7
million customers. The bvank hes specialized branches like Agricultural
Development Branch, Overseas, Foirsign Excharge Branches,
Specialized SSI Branches, Asset Recovery Management Branches,
currency Chests,Central Processing Centre spread across the length and
breadth of the country.

KARNATAKA BANK:-

FACILITIES AND CUSTOOMER SERVICE:-

Karnataka Bank provides a broad range of customized products and

services suitable for all kinds market, trade and pereceived requirements,
be it business or personal. IT deals in Personlized banking, business
banking, money tranfer, internet banking and insurance services. The
facilities include borrowing facilities, deposits, optimum returns on
surplus funds and helping with smooth overseas transactions.
93 As a part of personalized banking, Karnataka Bank provides
services for high earning deposits, simple & convenient loans, Life
insurance, Money trasfer, utility bill payments and thus,efficiently
keeps a track of your finances. As a part of its busioness banking,
the bank provides you with working capital finmance, term laons
and infrastructure finance,to let your business expand
smoothly.The Internal Banking