They say the first impression is the last impression. More so in the high-stakes banking business that pivots around trust and reliability. As a seasoned banker, you will probably agree that the relationship with your business customers should ideally begin when they decide to have a current account with your organization. Ensuring a smooth and easy onboarding process that is highly intuitive can be a great start to that relationship!
Old is Gold? Not Always!
However, suppose you are in a financial institution that still believes in managing current account onboarding in traditional ways. In that case, things are likely far from ideal and out of tune with your staff and customers’ needs.
For instance, to be onboarded for a current account using conventional means, your customers will have to visit your branch in person, costing valuable business hours. They will probably have to schedule the trip days or weeks in advance, meticulously arrange all the physical documents needed for submission and fill up stacks of paper forms.
Inefficient By Design
If such is the distress of your customers, your admin teams are also not better off. They will be painstakingly going through all these documents, fishing for mismatches, errors, and evidence of fraud. The sheer volume of documentation incredibly slows down the process. Further, with third-party agencies conducting compliance checks, your business customers may have to wait for hours or days before being able to actually use the current account services.
Clearly, traditional current account onboarding methods were designed to be policy-centric rather than serving your interest or that of your customers.
A Digitized Leap Forward
In contrast, digitized current account onboarding journeys are built to be human-centric and deliver an anytime-anywhere experience with minimum contact. For instance, it replaces bank visits for your customers with a banking super-app that can be used for current account opening at a time and place of their convenience.
Also, in digitized current account onboarding, the iterative documentation runs have been automated end-to-end with electronic data capturing, API integration with third-party databases, and AI algorithms for verification and churning out decision-ready insights. Consequently, today it is possible to drastically cut paperwork, securely onboard, and give your customers almost immediate access to their current accounts.
Getting The KYC Right
Nevertheless, irrespective of your institution’s position on the digital maturity curve, operating under stringent compliance remains a reality of a banker’s life. Therefore it pays to know all the KYC requirements that RBI has in place for current account onboarding. While such requirements can, at times, be confusing and vary between institutions, this list of significant customer types might come in handy:
Individual Current Account Holders
- Aadhaar or proof of application for Aadhaar card verification
- Copy of PAN card/Form 60
- FATCA Declaration
- Recent photograph
Hindu Undivided Family (HUF)
- Aadhaar of Karta/authorized signatories or proof of application for Aadhaar card verification
- PAN Card of HUF
- PAN Card of Karta
- FATCA Declaration
- A recent photograph of Karta/ authorized signatories
Single Proprietorship Firms
- KYC documents of the proprietor
- Copy of PAN card/Form 60 of the firm/proprietor
- FATCA Declaration
- Registration Certificate
- Document of recognition by Municipal Authorities under the Shop and Establishment Act
- Complete Income Tax returns
- GST certificate (provisional/final)
- Document issued by Sales Tax/Service Tax /Professional Tax authorities
- Importer Exporter Code issued by DGFT
- License/certificate of practice issued by a professional organization incorporated under a statute
- Utility bills
Partnership Firms
- In case the firm is registered, a copy of the registration certificate
- KYC documents of the partners/authorized signatories, as applicable
- Copy of PAN of the partnership firm and the partnership deed
- Proof of address, legal name, telephone number of the firm, and that of the main partners
- FATCA Declaration
- In case the firm is a Limited Liability Partnership, a certificate of its incorporation and registered agreement between partners
Trust/NGOs
- KYC documents of the Trustees/authorized signatories, as applicable
- Copy of the registration certificate duly certified
- Copy of PAN for the Trust/NGO
- Copy of the Constitutional Document/Trust Deed, duly certified
- An authenticated list of the office bearers and current trustees of the Trust/NGO
- Copy of resolution to open and operate a current account
- Copy of PAN
- Proof of address
- If Trust/NGO is exempted from Income Tax, Income Tax registration u/s 12A
- FATCA Declaration
Limited Companies
- KYC documents of the Directors/authorized signatories, as applicable
- Copy of Certificate of incorporation mentioning CIN
- Certified copy of Certificate of Incorporation, Memorandum, and Article of Association
- List of Directors citing DIN and a copy of Form 32
- Copy of resolution to open and operate a current account
- Certified copy of PAN and proof of address of the company, like utility bills
- In the case of a public limited company, a certified copy of the Certificate of Commencement of Business
- FATCA Declaration
Government Departments/Agency/Boards/Local Governance Bodies
- KYC documents of authorized signatories, as applicable
- Copy of resolution/authorization/mandate letter by a competent authority to open and operate a current account
- Certified identification of the authorized signatories by a competent authority
- Certificate of Incorporation/Registration
- Proof of address of the unit, like utility bills or any govt, issued documents
- Copy of PAN card/Form 60/ Income Tax exemption letter
A Solution Tailored For Indian Bankers
Not all digital onboarding platforms are created to deliver in our high-compliance banking landscape. Therefore, it’s understandable if your run-of-the-mill system sometimes falls short in onboarding your current account customers with the speed and efficiency you desire. That’s why TKYC by Perfios has been designed with the real-life challenges and the needs of the Indian bankers in mind.
It is the country’s largest AI-powered digital onboarding and risk mitigation platform that is intelligent enough to handle the load lifting on your behalf. Trusted by over 300 financial institutions at present, TKYC provides a wholly automated and zero-touch current account onboarding experience. It is made possible through cutting-edge OCR technologies, AI algorithms for verification, and exclusive access to a suite of 100+ APIs to handle essential documentation and RBI-mandated KYC checks for current account onboarding.
Seeing Is Believing
However, you need not have to take our word for it! We believe that onboarding your current account customers with ease and compliance is too business-critical to be left to chance. If you agree, we invite you to get in touch with one of our banking industry experts for a free demo and understand why TKYC is all you need to smoothly onboard your current account customers.
About us:
Perfios is the largest data, analytics, automation, and decisioning solution provider to FIs, catering to the entire lending lifecycle from onboarding to diligence & monitoring to collections. Perfios solutions enable systemic fraud prevention, risk management, compliance & automation through superior data engineering and deep tech applications.
In a nutshell, Perfios stands on the trifecta of digitization: automation, enhanced diligence, and robust decisioning for straight-through processing; thus, creating a state-of-the-art digitization process without compromising on security and quality. Perfios is a pioneer in the services it offers and has successfully acquired a very diverse portfolio of 300+ live clients, spanning across the largest gamut of use cases in the industry.
