Clarification with regards to KYC guidelines for Business.

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RBI Circular Master Direction:

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.

KYC Policy with respect to individuals

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
Voter ID Yes Yes
Passport Yes Yes
Pan Card Yes No
Driving License Yes Yes
Ration Card Only TL No
Utility Bill No Yes
Bank Passbook No Yes
Municipal Tax Receipt No Yes
Property Tax Receipt No Yes

KYC Policy with respect to individuals

Apart from personal KYC, the KYC of business entity also needs to be provided as prescribed by RBI:

  • Business establishment proof.
  • Business Address proof.

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.

  • Business Address proof should contain complete Business address details
  • Business establishment proof should contain the entity/enterprise name

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*
IT Return Yes Yes
Shop establishment certificate Yes Yes
Registration certificate Yes Yes
Professional Tax Certificate Yes Yes
GST Certificate Yes Yes
IEC (Importer exporter code) Only TL No
Utility Bill (Business) Yes Yes
Business PAN Yes No