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According to the circular, customers are grouped according to the level of risk they represent. In along with the standard KYC requirements, high-risk customers must produce proof of the money they are investing.
According to the circular, We can divided clients on the basis of risk perception as below mention:
➡ High risk: Where the customer opens an account or applies for purchase of certificates or applies for prematurity value or credit of maturity of any existing savings instrument with an amount exceeding INR 10,00,000/- and balance in all accounts and certificates does not exceed INR 10,00,000/-.
➡ Medium risk: Where the customer opens account or applies for purchase of certificates or applies for prematurity value or credit of maturity/of any existing savings instrument with an amount exceeding INR 50,000/- However up to INR 10,00,000/- & balances in all accounts and savings certificates does not exceed INR 10,00,000/-
➡ Low risk: Where the customer opens an account or applies for purchase of certificates or applies for prematurity value or credit of maturity of any existing savings instruments with an amount of up to INR 50,000/- and balances in all accounts and savings certificates does not exceed INR 50,000/- .
Accounts relating to Politically Exposed Persons residing outside India shall fall under High-Risk Class. Politically Exposed Persons are those individuals who are or have been entrusted with prominent public functions by a foreign country, including judicial or senior politicians, or military officers or senior government, Heads of Govts or States, important political party officials & senior executives of state-owned corporations.
According to the circular, the A copy of a document identifying the source of the cash received for investments must be submitted by the customer. The source of funds can be verified with any of the following document:
Apart from asking for proof of money source for certain investors, all categories of customers/investors (irrespective of their risk categories) are required to produce the following documents to do the investment:
It is to be Noted that documents should be self-attested by investor. If joint account, ID & address proof of all joint depositors are needed. For basic savings accounts, document given that depositor is a beneficiary of any govt scheme is compulsory.
Above mention circular explain that Re KYC required to done depending on risk of customers. For low-risk customers and high-risk, medium risk, Re-KYC must be done every 2, 5 & 7 years respectively.
When any certificate holder or depositor or requests that the maturity value of an existing savings account be credited, this should only be done after confirming that the savings account in question was opened with the proper KYC documentation and applying the risk category in accordance with the balance in the account following the credit of the maturity value.
According to the circular, if a new savings account is opened to credit maturity value, it must be assured that the proper KYC documents are obtained depending on the maturity value being credited into the account.
Income Tax Dept given following key services within prescribed deadline given below.
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