Concurrent bank audit -kyc form checking

Others 2827 views 2 replies

Mayank Saini

Student

123 Points Joined August 2012

I am an Article in a mid sized firm. I have been recently given a concurrent Audit assignment of OBC's branch. I have question regarding KYC form cheching.

As per the checklist we are following since one year for KYC checking apart from other items includes:

1. Mode of Operation- Is it mandatory to be filled?

2.Nomination details- Is it mandatory to be filled?

3.Pan No. or Form 60/61- for minors or for low income individuals(<50,000) should they give declaration in Form 60/61 mandatorily?

However i have found many Account opening forms not filled properly on above points.

While surfing on internet I could not get any information on points 1 &2 that it is mandatory and regarding point 3 it is mandatory to quote pan for opening a bank A/c but again we can give declaration in form 60/61 if pan is not available. That is what I could get.

Please guide me on above points.

Replies (2)

CA-CWA RAVI

CA-CWA in industry

5464 Points Joined May 2008

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.

Mayank Saini

Student

123 Points Joined August 2012

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?