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General_KYC

 KNOW YOUR CUSTOMER - DOCUMENTS

KYC norms have been revised vide SB Order No. 12/2023.  As per the new norms, the POSB customers are to be classified into three categories, namely,  Low Risk, Medium Risk and High Risk. 

Low Risk : If the amount of deposits in all PO Savings Schemes put together does not exceed Rs.50000/-

Medium Risk:  It exceeds Rs.50000/- but does not exceed Rs.10 lakhs.

High Risk : It exceeds Rs. 10 lakhs

KYC documents required:
For all Categories : 
Photographs:
1) Two Passport size photographs (Three in the case of BOs) and photographs of all depositors in the case of Joint Accounts.
2) Identification documents: (required for joint account holders also)
a) Aadhar number and if not available, proof of applying for Aadhar to be submitted and Aadhar number should be submitted within six months from the date of opening.
b) PAN or Form-60.  PAN should be submitted within 2 months from the date on which the balance in an account exceeds Rs.50000/- or if the aggregate of all credits in an account in a financial year exceeds Rs.1 lakh or if aggregate of all withdrawals and transfers in a month in an account exceeds Rs.10000/-.  Failure to submit will make the account inoperative and such accounts will become operational only when the PAN is submitted. 
3) Address Proof : (required for Joint account holders also)
a) Aadhar card
b) PAN
c) If Aadhar does not contain the present address, any of the following documents can be produced:
    i)   Passport
   ii)   Driving licence
  iii)   Voter's Card
  iv)   Job card issued under MGNREGA
   v)   National Population Register (NPR)
 vi)   Utility Bill of not more than 2 months old (electricity, water,  Mobile,  Gas, Property Tax,
 vii)   PPO or Family Pension payment order
viii)  Letter of allotment of accommodation to employees by their employers under Govt/semi-govt/public sector/Listed companies.
 (4)     In case of an account opened on behalf of a minor or a person of unsound mind the identity documents of the guardian shall be furnished to the Accounts Office.
(5) Where an account is opened through an authorised agent, the agent shall also affix his signatures and mention the particulars of his agency on the identity documents, alongside those of the depositor.
 
(6)      In case of change of address, the depositor shall submit the relevant identity document with updated address within a period of three months.

For High Risk customers : Proof of source of fund tendered for investment should also be submitted.  Bank/Post office account statement or IT returns filed for the previous three years or copies of sale/gift deed, Will, Succession certificate can be produced as proof.  If the investment is on behalf of minor, documents relating to the guardian should be submitted. 

Re-KYC:  KYC should be revised in every 7 years in respect of Low Risk customers, 5 years in respect of Medium Risk customers and 2 years in respect of High Risk customers.  In addition, Customer Due Diligence review should be done whenever there arises doubts about the documents already produced or when adequate proof of source of fund is not produced. 

Note 2: The customers who are already having updated KYC details in CBS Post Offices are not required to submit photographs and KYC documents for opening of accounts subsequently.
Note 3: Depositor may open account in any post office by submitting the prescribed KYCdocuments irrespective of his/her area of residence.


Suspicious Transaction means a transaction defined in clause (i) to (iv) below, including an attempted transaction, whether or not made in cash which, to a person acting in good faith-
(i) gives rise to a reasonable ground of suspicion that it may involve proceeds of an offence specified in the schedule to the Act regardless of the value involved: or
(ii) appears to be made in circumstances of unusual or unjustified complexity: or
(iii) appears to have no economic rationale or bonafide purpose; or
(iv) gives rise to a reasonable ground of suspicion that involves financing of the activities relating to terrorism;

'Transaction' includes deposit, withdrawal, exchange or transfer of funds in whatever currency, whether in cash or by cheque/DD/Banker's cheque, payment order or other instruments or by electronic or other non-physical means.
Reporting of Transactions: 
Following types of transactions are to be reported:
4.2,1 Types of transactions
(a) All cash transactions of value more than t l0 Lakh.
(b) All series of cash transactions which are less than < l0 lakh but are integrally connected and are carried out within one calendar month period and totally exceed Rs l0 lakhs
(c) Any account where cash is accepted and forged or counterfeit currency notes are used or where forgery of valuable Security or documents has taken place.
(d) Any attempted transaction involving forged or counterfeit currency notes, forged
security or document.
(e) All suspicious transactions, involving deposit, withdrawal, transfer of account,
solvency certificate/ lndemnity certificate etc. irrespective of the amount of transaction.
The first two items above come under CTR (Cash Transaction report) and the remaining come under STR (Suspected Transaction Report). CTR to be submitted monthly on 6th working day and STR on the very same day of occurrence of transaction. Attempted transactions should also be included.

Click here for the relevant SB Order No. 12/2023,   and SB Order No. 8/2023
Preservation Period of KYC documents at Circle CPC has been prescribed in SB order No. 6/2019 which reads as follows:
(A)Physical KYC Forms at CPC(CBS):- "One year after scanning and ' uploading"
(B) Scanned images of KYC forms at CPC(CBS) :' "Three year after scanning  and uploading".
(C)Disposal of KYC Forms at CPC (CBS):- KYC Forms to be destroyed by shredding method in the presence of In-charge CPC(CBS) and necessary  records to be maintained at CPC(CBS) as regards the destruction of KYC forms.

Click here for SB Order No. 6/2019

Introduction of eKYC:


Paperless process by obtaining eKYC through Aadhar authentication process has been introduced in POSB.  As per this, CIF ID can be created by providing eKYC through Aadhar authentication process.  Accounts can be opened and deposits as well as withdrawals can be made without providing any document   
For details click here for SB Order No. 1/2025
As per SB Order No. 7/2025 dated 30/04/2025, e-KYC facility has been implemented for opening of TD, MIS, NSC and KVP accounts Accordingly, now the post offices will be able to open the MIS, TD, KVP and NSC scheme accounts of Single - Individual (Adult) type through Aadhaar authentication using e-KYC CIF. 
On invoking the CMISAOP menu, the Counter PA has to obtain the biometric of the depositor for getting the consent to use his/her Aadhaar and proceed for feeding the other details for opening of the account. On completion of all the data entry in CMISAOP screen, before submission, second biometric of the depositor shall be obtained for authenticating the transaction
No-pay-in-slip (deposit) voucher shall be collected for any amount of deposit while opening these accounts on Aadhaar Authentication basis. The amount written by the depositor in the Account Opening Form (SB-eKYC-AOF) shall be considered as amount of deposit. If the depositor desires to transfer the funds from PO Savings Account for opening of MIS/TDiKVP/NSC accounts, the debit account should be either Single or Joint B type account olthe depositor. In case the account is opened on transfer of funds from the PO Savings Account of the depositor, withdrawal form (SB-7) shall not be collected, as the account is opened though biometric authentication of the depositor. The existing process shall be followed for the paper-based (voucher based) transactions. . Aadhaar Authenticated Transactions will directly be posted in the ledgers and require no verification by the checker. Accordingly, the account will be opened directly on biometric authentication of the depositor. All the transactions including the POSA debit transactions, posted for opening of MIS/TD/KVP/NSC through biometric authentication shall appear in the ..eKYC long book detailed report.  


The development of functionalities like Account Closure, Transfer of Accounts, change of nomination (Account Modification) etc. through biometric authentication are underway. Meanwhile, these operations shall continue to be performed through the existing method. 


The following points are once again reiterated.  For any eKYC based transactions, AOF or any other form collected from the customer shall have Aadhar no. in masked form (xxxx-xxxx). If any document contains the unmasked Aadhaar, Postmaster should ensure that first eight digits of the Aadhaar number are masked using black ink pen or sketch or any available means.  All the post offices and CBS-CPCs should ensure that the Aadhaar Number is masked in all the existing documents like AOF, KYC Form etc. containing the Aadhaar Number including the copy of the Aadhaar obtained.  Circles should ensure that paperless KYC is performed with due diligence for all the new customers and existing account holders for ease of KYC compliance and other benefits to the customers and Department.


Click here for SB Order No. 7/2025