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Business News/ Money / Personal Finance/  Investing 10 lakh in small saving schemes? You have to show your income proof now
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Investing ₹10 lakh in small saving schemes? You have to show your income proof now

The objective of KYC/AMUCFT guidelines is to prevent money laundering or terrorist financing activities by use of Post Office Savings Bank intentionally or unintentionally by criminal elements, the circular stated

All customers according to the amount involved at the time of opening of account or purchase of Savings Certificates or credit into an existing account have been categorized with the perspective of risk involved.Premium
All customers according to the amount involved at the time of opening of account or purchase of Savings Certificates or credit into an existing account have been categorized with the perspective of risk involved.

In a bid to curb the menace of money laundering and Financing of Terrorism, the Department of Posts has issued a new notification in which it has asked officials to collect the income proofs from investors of certain categories investing in small savings schemes.

"Further, in order to comply with the guidelines of the Financial Intelligence Unit - India (FIU-IND) and Financial Action Task Force (FATF), it has been decided to issue revised guidelines on AML/CFT norms to be followed in the post offices in respect of National (Small) Savings Schemes," the circular stated.

The objective of KYC/AMUCFT guidelines is to prevent money laundering or terrorist financing activities by use of Post Office Savings Bank intentionally or unintentionally by criminal elements. KYC procedures also enable to post office Savings Banks to know understand their customers better which in tum helps them manage their risks prudently.

All customers according to the amount involved at the time of opening of account or purchase of Savings Certificates or credit into an existing account have been categorized with the perspective of risk involved. The categorization is as under:

Low Risk: Where the customer opens account or applies for purchase of certificates or applies for credit of matruity/prematurity value of any existing savings instrument with an amount up to (50,000/and balance in all accounts and savings c.ertificates does not exceed { 50,000/-.

Medium Risk: Where the customer opens account or applies for purchase of certificates or applies for credit of maturity/prematurity value of any existing savings instrument with an amount exceeding t 50,000/- but up to { l0 lakh and balance in all accounts and savings certificates does not exceed t l0 lakh.

High Risk: Where the customer opens account or applies for purchase of certificates or applies for credit of maturity/prematurity value of any existing savings instrument with an amount exceeding { l0 lakh and balance in all accounts and certificates does not exceed t l0 lakh.

For all risk-categories

PHOTOGRAPH

- Two (three in case ofBO) recent Passport Size Photographs are to be given.

- In case ofJoint Account, photograph of all joint holders should be given.

IDENTIFICATION PROOF

Aadhaar Number issued by the Unique Identification Authority of India (UIDAI) where the Aadhaar Number has not been assigned to an individual, he shall furnish proof of application of enrollment for an Aadhaar at the time of opening an account and the account holder shall furnish the Aadhaar number to the Accounts Office within a period of six months from the date of opening of account for linking the account with Aadhaar Number.

Permanent Account Number (PAN) or Form 60 as defined in Income Tax Rules, 1962: If the depositor who has not submitted the Permanent Account Number at the time of

opening an account shall submit the same to the Post Office where the account exists, within a period of two months from tle date of happening of any of the following events, whichever is the earliest, namely

(i) the balance at any point of time in the account exceeds fifty thousand rupees; or

(ii) the aggregate of all credits in the account in any financial year exceeds one lakh rupees; or

(iii) the aggregate of all withdrawals and tansfers in a month from the account exceeds ten thousand rupees.

For High-Risk Categories

PROOF OF SOURCE OF FUND

The customer has to submit copy of document strowing source of receipt of funds tendered for investnent. Any of the following documents may be obtained as Proof of  Source of Fund

(i)Bank / Post Office Account Statement (which reflects the source / receipt of fund)

(ii). Any one of the Income Tax Returns filed during the last three financial years ( co-relates the investment with the gross income)

(ii). Sale deed / Gift deed / Will / Letter of Administration / Succession Certificate

(iv). Any other document which reflects the income / source of fund

Reporting of Transactions.

The following  types of transactions are to be reported:

(a) All cash transactions of value more than 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 10 lakh.

(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 tansactions, involving deposit, withdrawal, tansfer of account, solvency certificate/ lndemnity certificate etc. irrespective ofthe amount of transaction.

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Published: 27 May 2023, 05:00 PM IST
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