Know Your Customer Direction, 2016 dated 25th February 2016 provides detailed guidelines on KYC to be obtained for individuals & other business entities. In order to sync with the RBI directives on KYC, it has become necessary to reiterate the KYC guidelines on loans to non-individuals and to business entities.
Personal KYC (ID & Address proof) is collected for the proprietors/ partners/ directors as per respective constitution of the firm. The complete list of personal KYC for Business has been appended as per RBI guidelines. Only the following documents qualify as acceptable KYC documents.
|Document type||ID Proof||Residential address proof|
|Aadhar Card [ Optional ]||Yes||Yes|
|Ration Card||Only TL||No|
|Municipal Tax Receipt||No||Yes|
|Property Tax Receipt||No||Yes|
Apart from personal KYC, the KYC of business entity also needs to be provided as prescribed by RBI:
Looking at the profile of customers being catered to under Emerging Micro, it is clarified that at least one of the documents under Business Address Proof and Business establishment proof has to be collected. The list of documents which can be accepted under business address proof has undergone changes.
Note:- The business address proof has to be in the name of the Enterprise only. Address proof of the business premise in the name of individual, landlord in case of rented premises will not be considered as business address proof.
Constitution proof is required to be collected for loan request/ application received from enterprises (non- individual entity) like Partnership, Pvt Limited Company etc. For example: In the case of partnership firms, Registered Partnership Deed, & partner’s consent letter needs to be collected.
This circular supersedes all other KYC circulars issued for Business.
All offices shall ensure compliance of the aforesaid guidelines.
The approved list of documents for business KYC is as below:
|Document type||Business establishment proof**||Buisiness address proof*|
|Shop establishment certificate||Yes||Yes|
|Professional Tax Certificate||Yes||Yes|
|IEC (Importer exporter code)||Only TL||No|
|Utility Bill (Business)||Yes||Yes|