Concurrent bank audit -kyc form checking

Dear Mayank

nice to see you doing concurrent audit.. as i was in your shoes years ago .. and was involved in concurrent audit of 4 major branches including 2 VELB.

so far as i know ..

regarding mode of operation and nomination .. they are mandatorily filed with the bank so as to enable the bank to let the accountholder use their account. Unless the bank knows the account has to be operated self or with joint holders ,, it is unsecure to let the person draw money.

Nomination as well is compulsarily required to be filed as per the banking regulations act.

Now the PAN or Declearation on PAN i,e form 60/61... KYC itself mandates to have a PAN to open a account.. but for low profile customers as you have mentioned .. students or low income groups .. the bank gives sort of exemption to have a PAN by filing a decleration. But they cant do away from this procedure.

I hope your query stands answered.

Thank you Sir. The information is really helpful.

However my experience is that the bank officials are callous in getting these three columns filled. They say that when individual has filled the form it is obvious that 'Mode of operation' will be single and 'Nomination' if not filled means the customer does not wish to make anyone as nominee. They are mostly intrested in ID and Address Proof docs.

For PAN i have got something in writing, can you please share for Mode of operation and Nomination details any guidelines?