OBJECTIVES OF THE STUDY

1. To know and analyse the Digital banking and how it has risen the banking era to new
heights of success and increase the role of banking in different sphere of present
scenario
2. To understand the focused areas of Digital banking
3. To understand the significance of Digital bankinf and acherance to KYC norms in
present scenario
4. To know the challenges of Digital banking and KYC norms
5. To know that countries like India should more adhere to digital banking for
channelization of smooth money supply and overall growth of nations economy.
6. To know and analyse the necessity for the adherence of KYC norms to banking.
7. To know how Banks should frame their KYC policies incorporating the key elements
like Customer Acceptance Policy, Customer Identification Procedures, Monitoring of
Transactions; and Risk Management.
8. To find out the Strength of the KYC norms and how Strict security of Digital banking
will help in Combating Financing of Terrorism

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 INTRODUCTION TO INDUSTRY – BANKING

With the potential to become the fifth largest banking industry in the world by 2020
and third largest by 2025 according to KPMG-CII report, India’s banking and
financial sector is expanding rapidly. The Indian Banking industry is currently worth
Rs. 81 trillion (US $ 1.31 trillion) and banks are now utilizing the latest technologies
like internet and mobile devices to carry out transactions and communicate with the
masses.

The Indian banking sector consists of 26 public sector banks, 20 private sector banks
and 43 foreign banks along with 61 regional rural banks (RRBs) and more than
90,000 credit cooperatives.

Factors promoting growth of Banking and Financial Services

The Banking Laws (Amendment) Bill that was passed by the Parliament in 2012
allowed the Reserve Bank of India (RBI) to make final guidelines on issuing new
bank licenses. Moreover, the role of the Indian Government in expanding the banking
sector is noteworthy. It is expected that the new guidelines issued by RBI will curb
practices of impish borrowers and streamline the loan system in the country. In the
coming time, India could see a rise in the number of banks in the country, a shift in
the style of operation, which could also evolve by incorporating modern technology in
the industry.

Another emerging trend witnessed by the banking sector is the use of social media
platform like Facebook to attract customers. In September 2013 ICICI bank launched
a Facebook bill payment and fund transfer service called ‘Pockets’ for customer
convenience. According to a report by Zinnov, a Globalization and Market Expansion
firm, ‘IT adoption in BSFI sector in India’, the Information Technology Industry
spend in BFSI vertical is expected to reach USD 3.5 billion by Financial Year 2017.

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The study also highlighted ‘the growing maturity of Indian BFSI organizations in IT
adoption, as technology is seen as a driver of business value. Technology firms have
great potential to explore in the BFSI sector, which contributes to eight per cent of
India's Gross Domestic Product.’

Life Insurance

The Indian life insurance industry is estimated to grow at a compounded annual

growth rate (CAGR) of 14.1 per cent, and reach US$ 111.9 billion in 2015 from US$
66.5 billion in 2011, according to a report by BRIC data. This would make India the
third-largest market for life insurance in the world by 2015. India’s present position is
at number 12, among top global markets for life insurance. Number of policies sold is
expected to increase to 85.21 million in 2015 from 53.23 million in 2010. The 2014-
15 Union Budget should exempt life insurance products from taxation to provide
investors an incentive to buy a policy. The insurance industry can gain leverage from
India's burgeoning population only by providing a special tax window for life
insurance policies.

Health Insurance

In the non-life insurance industry, health insurance is the second largest segment in
India; with players in both the public and private sectors playing an active role. The
industry is concentrated around 4 major public sector companies namely, New India
Assurance, United India Insurance, National Insurance and Oriental Insurance.

The Indian health insurance industry has seen major growth in the past 6 years. The
Indian health insurance industry is expected to grow at a CAGR of 37.2% from
FY’2011 - FY’2016; with surging medical costs, rising population and increased
awareness among consumers in the country.

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Recruitment Trends in BSFI Industry

The Banking and Financial Services Industry is expected to recruit about 8.4 million
people as per the growth rate each year. BSFI workforce requirement between 2008
and 2022 is expected to be about 4.2 million and sector may create up to 20 lakh new
jobs in the next 5-10 years.

Advantaged by issuance of new licences and efforts being made by the RBI and the
Government to expand financial services into rural areas, the hiring trend may further
get a boost from the public sector banks. Since most banking workforce is scheduled
to retire in the times to come, they would be in dire need of fresh talent. According
Randstad India, global HR service provider in India, the banking sector will generate
7-10 lakh jobs in the coming decade and the sector would be the among top job
creators in 2016.

According to ‘Human Resource and Skill Requirements in the Banking, Financial

Services & Insurance Sector (2022) report, apart from the on-rolls employment there
is significant contractual employment across all the above segments through various
financial positions such as Direct Selling Agents (DSA’s), Insurance agents, Mutual
Fund Advisors, etc.

Challenges in BFSI

The major challenge faced by the Indian Banking and Financial sector is that the level
of financial exclusion in India is alarming and there is an urgent need to find a
plausible solution to the same. The IBA–BCG survey of banks revealed that the level
of confidence in finding profitable solutions for financial inclusion is not very high.
Financial inclusion has solely been the responsibility of public banks up until now,
but by using inclusive growth as one of the criteria for new licences (new banks have
to open 25 per cent of their branches in rural areas); the RBI will have made the new
private sector banks responsible as well. Currently, public sector banks have more
branches than any other bank group in the rural and semi-urban areas.

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The banking and insurance industry is challenged by competitive pressures, changes
in customer loyalty, stringent regulatory environment and entry of new players, all of
which are pressuring the organizations to adopt new business models, streamline
operations and improve processes.

Road Ahead

An IBA-FICCI-BCG report suggests that India’s gross domestic product (GDP)

growth will make the Indian banking industry the third largest in the world by 2025.
According to the report, the domestic banking industry is set for an exponential
growth in coming years with its assets size poised to touch USD 28,500 billion by the
turn of the 2025. With the deposits growing at a CAGR of 21.2 per cent (in terms of
INR) in the period FY 06–13, there has been evident growth in the overall industry.

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 INTRODUCTION TO ORGANISATION – HDFC BANK

The HDFC Bank was incorporated on August 1994 by the name of 'HDFC Bank
Limited', with its registered office in Mumbai, India. HDFC Bank commenced operations
as a Scheduled Commercial Bank in January 1995. The Housing Development Finance
Corporation (HDFC) was amongst the first to receive an 'in principle' approval from the
Reserve Bank of India (RBI) to set up a bank in the private sector, as part of the RBI's
liberalization of the Indian Banking Industry in 1994.
HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable network
of over 1416 branches spread over 550 cities across India. All branches are linked on an
online real–time basis. Customers in over 500 locations are also serviced through
Telephone Banking. The Bank also has a network of about over 3382 networked ATMs
across these cities.
The promoter of the company HDFC was incepted in 1977 is India's premier housing
finance company and enjoys an impeccable track record in India as well as in
international markets. HDFC has developed significant expertise in retail mortgage loans
to different market segments and also has a large corporate client base for its housing
related credit facilities. With its experience in the financial markets, a strong market
reputation, large shareholder base and unique consumer franchise, HDFC was ideally
positioned to promote a bank in the Indian environment.
The shares are listed on the Bombay Stock Exchange Limited and The National Stock
Exchange of India Limited. The Bank's American Depository Shares ( ADS ) are listed
on the New York Stock Exchange (NYSE) under the symbol 'HDB' and the Bank's
Global Depository Receipts (GDRs) are listed on Luxembourg Stock Exchange.
On May 23, 2008, the amalgamation of Centurion Bank of Punjab with HDFC Bank was
formally approved by Reserve Bank of India to complete the statutory and regulatory
approval process. As per the scheme of amalgamation, shareholders of CBoP received 1
share of HDFC Bank for every 29 shares of CBoP.
The merged entity now holds a strong deposit base of around Rs. 1,22,000 crore and net
advances of around Rs. 89,000 crore. The balance sheet size of the combined entity
would be over Rs. 1,63,000 crore. The amalgamation added significant value to HDFC

6
Bank in terms of increased branch network, geographic reach, and customer base, and a
bigger pool of skilled manpower.
In a milestone transaction in the Indian banking industry, Times Bank Limited (another
new private sector bank promoted by Bennett, Coleman & Co. / Times Group) was
merged with HDFC Bank Ltd., effective February 26, 2000. This was the first merger of
two private banks in the New Generation Private Sector Banks. As per the scheme of
amalgamation approved by the shareholders of both banks and the Reserve Bank of India,
shareholders of Times Bank received 1 share of HDFC Bank for every 5.75 shares of
Times Bank.
HDFC Bank offers a wide range of commercial and transactional banking services and
treasury products to wholesale and retail customers. The bank has three key business
segments:
Wholesale Banking Services – The Bank's target market ranges from large, blue–chip
manufacturing companies in the Indian corporate to small & mid–sized corporates and
agri–based businesses.
Retail Banking Services – The objective of the Retail Bank is to provide its target
market customers a full range of financial products and banking services, giving the
customer a one–stop window for all his/her banking requirements.
Treasury – Within this business, the bank has three main product areas – Foreign
Exchange and Derivatives, Local Currency Money Market & Debt Securities, and
Equities. The Treasury business is responsible for managing the returns and market risk
on this investment portfolio.
HDFC Securities (HSL) and HDB Financial Services (HDBFSL) are its subsidiaries.
Services offered by the company:
Personal Banking
• Accounts & Deposits
• Loans
• Cards
• Forex
• Investments & Insurance
NRI Banking

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• Accounts & Deposits
• Remittances
• Investments & Insurance Loans Payment Services
Wholesale Banking
• Corporate
• Small & Medium Enterprises
• Financial Institutions & Trusts
• Government Sector
Achievements/ recognition:–
HDFC Bank was the first bank in India to launch an International Debit Card in
association with VISA (VISA Electron) and issues the Mastercard Maestro debit card as
well.
2013
 IBA Banking Technology Awards 2012–13 – Best Technology Bank of the year –
Winner
o Best Internet Bank – Winner
o Best Customer Management Initiative – Winner
o Best use of Mobility Technology in Banking

 Business Standard Mr Aditya Puri – Banker of the Year 2013

 Business Today–KPMG Best Banks Survey 2013 Best Bank 2013
 Business India Best Bank 2013
 Global Finance Survey –World's Best Banks 2013 Best Bank in India
 Outlook Money Awards 2013 Best Bank in Large Banks Category
 IBA Innovation Awards Most Innovative use of Technology
 zun & Bradstreet Polaris Financial Technology Banking Award 2013 – Best Private
Sector Bank Technology Adoption
o Best Private Sector Bank Retail
o Overall Best Private Sector Bank
 Institutional Investor – Best Bank in Asia
o Mr. Aditya Puri – Best CEO

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 Forbes Asia Fab 50 Companies List for the 7th year
 Sunday Standard Best Banker Awards – Best Private Sector Bank: Large
o Safest Bank: Large
o Mr. Aditya Puri: Top Achiever
 UTI Mutual Fund CNBC TV 18 Financial Advisory Awards
2012
 Best Performing Bank – Private
 Asia Money 2012 – Best Domestic Bank in India
o Mr. Aditya Puri: Best Executive in India
 MACCIA Awards 2012 Best in Financial Services:Bank Category
 Dun & Bradstreet Corporate Awards 2012Best in Banking sector
 NDTV Profit Business Leadership Awards 2012 Winner in the banking category
 NASSCOM CNBC–TV18 IT Innovation Award Best IT Driven Innovation in
Banking (COMMERCIAL)
 The National Quality Excellence Awards Best Customer Service Result
 FE Best Bank Awards –Best Bank: New Private sector
o Best in Strength & Soundness
o Mr. Aditya Puri: Best Banker
 Skoch Financial Inclusion Awards 2013 Organisation of the Year
2011
 Financial Express Best Bank Survey 2010–11 – Best in Strength and Soundness and
2nd Best in the Private Sector
 CNBC TV18's Best Bank & Financial Institution Awards – Best Bank and Mr. Aditya
Puri, for outstanding finance professional
 Dun & Bradstreet Banking Awards 2011 – Best private sector bank – SME Financing
 ISACA 2011 award for IT Governance – Best practices in IT Governance and IT
Security
 IBA Productivity Excellence Awards 2011 – New Channel Adopter (Private Sector)
 DSCI (Data Security Council of India) Excellence Awards 2011 – Security in bank
 FINANCE ASIA Country Awards 2011: India – Best bank, best cash management

9
 bank and best trade finance bank
 Asian Banker – Strongest bank in Asia Pacific
 Bloomberg UTV's Financial Leadership Awards 2011 – Best bank
 IBA Banking Technology Awards 2010 – Technology bank of the year, best online
bank, best customer initiative, best use of business intelligence, best risk management
system and runners up – best financial inclusion
 IDC FIIA Awards 2011 – Excellence in customer experience
2010
 Outlook Money 2010 Awards – Best Bank
 Businessworld Best Bank Awards 2010 – Best Bank (Large)
 Teacher's Achievement Awards 2010 (Business) – Mr. Aditya Puri
 The Banker and PWM 2010 Global Private Banking Awards – Best Private Bank in
India
 Economic Times Awards for Corporate Excellence 2010 – Business Leader of the Year
– Mr. Aditya Puri
 Forbes Asia – Fab 50 Companies – 5th year in a row
 NDTV Business Leadership Awards 2010 – Best private sector bank
 The Banker Magazine – World's Top 1,000 Banks
 MIS Asia IT Excellence Award 2010 – BEST BOTTOM–LINE I.T. Category
 Dun & Bradstreet Banking Awards 2010 – Overall best bank, Best private sector bank,
Best private sector bank in SME Financing
 Institutional Investor Magazine Poll – HDFC Bank MD, Mr. Aditya Puri among ‘Asian
Captains of Finance 2010’
 IDRBT Technology 2009 Awards – IT Infrastructure, Use of IT within the Bank and
Runners–up – IT Governance (Large Banks)
 ACI Excellence Awards 2010 – Highly Commended – Asia Pacific HDFC Bank
 FE–EVI Green Business Leadership Award – Best performer in the banking category
 Celent's 2010 Banking Innovation Award – Model bank Award
 Avaya Global Connect 2010 – Customer Responsiveness Award – Banking &
Financial Services category

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 Forbes Top 2000 Companies – HDFC Bank at 632nd position and among 130 global
high performers
 Financial Express – Ernst & Young Survey 2009–10 – Best new private sector bank,
Best in growth and Best in strength
 Asian Banker Excellence Awards 2010 – Best retail bank in India, Excellence in
automobile lending, Best M&A integration and technology implementation
 The Asset Triple A Awards – Best cash management bank in India
 Euromoney Private Banking and Wealth Management Poll 2010 – Best local bank in
India (second year in a row), Best private banking services overall (moved up from
No. 2 last year)
 Financial Insights Innovation Awards 2010 – Innovation in branch operations – server
consolidation project
 Global Finance Award – Best trade finance provider in India for 2010
 2 Banking Technology Awards 2009 – Best risk management initiative and Best use of
business intelligence
 SPJIMR Marketing Impact Awards (SMIA) 2010
 Business Today Best Employer Survey – Listed in top 10 best employers in the country
2009
 Business Standard Best Banker Award – Mr. Aditya Puri, MD, HDFC Bank
 Fe Best Bank Awards 2009 – Best Innovator of the year award for its MD Mr. Aditya
Puri – Second Best Private Bank in India – Best in Strength and Soundness Award
 Euromoney Awards 2009 – 'Best Bank in India'
 Economic Times Brand Equity & Nielsen Research annual survey 2009 – Most
Trusted Brand – Runner Up
 Asia Money 2009 Awards – 'Best Domestic Bank in India'
 IBA Banking Technology Awards 2009 – 'Best IT Governance Award – Runner up'
 Global Finance Award – 'Best Trade Finance Bank in India for 2009
 IDRBT Banking Technology Excellence Award 2008 – 'Best IT Governance and
Value Delivery'
 Asian Banker Excellence in Retail Financial Services – 'Asian Banker Best Retail

11
 Bank in India Award 2009 '
2008
 Finance Asia Country Awards for Achievement 2008 – 'Best Bank and Best Cash
Management Bank'
 CNN–IBN – 'Indian of the Year (Business)'
 Nasscom IT User Award 2008 – 'Best IT Adoption in the Banking Sector'
 Business India – 'Best Bank 2008'
 Forbes Asia – Fab 50 companies in Asia Pacific
 Asian Banker Excellence in Retail Financial Services – Best Retail Bank 2008
 Asiamoney – Best local Cash Management Bank Award voted by Corporates
 Microsoft & Indian Express Group – Security Strategist Award 2008
 World Trade Center Award of honour – For outstanding contribution to international
trade services.
 Business Today–Monitor Group survey – One of India's 'Most Innovative Companies'
 Financial Express–Ernst & Young Award – Best Bank Award in the Private Sector
category
 Global HR Excellence Awards – Asia Pacific HRM Congress: – 'Employer Brand of
the Year 2007 –2008' Award – First Runner up, & many more
 Business Today – 'Best Bank' Award
2007
 Dun & Bradstreet – American Express Corporate Best Bank Award 2007 – 'Corporate
Best Bank' Award
 The Bombay Stock Exchange and Nasscom Foundation's Business for Social
Responsibility Awards 2007 – 'Best Corporate Social Responsibility Practice' Award
 Outlook Money & NDTV Profit – Best Bank Award in the Private sector category.
 The Asian Banker Excellence in Retail Financial Services Awards – Best Retail Bank
in India
 Asian Banker – Its Managing Director Aditya Puri wins the Leadership Achievement
Award for India

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 THEORECTICAL PERSPECTIVE

DIGITAL BANKING

Digital banking is the digitization (or moving online) of all the traditional banking
activities and programs that historically were only available to customers when
physically inside of a bank branch. This includes activities like:

• Money Deposits, Withdrawals, and Transfers

• Checking/Saving Account Management

• Applying for Financial Products

• Loan Management

• Bill Pay

• Account Services

Consumer preferences have quickly shifted to online and mobile devices, but many
financial organizations have had trouble shifting their onboarding experiences online
and to smaller screens.

In addition, until the past few years, banks were not envisioning the tremendous shift
in consumer behavior that occurred as a result of the millennial generation now
become the largest consumers of financial products.

What is the Difference Between Online and Digital Banking?

For the most part, these two words are synonyms. But, we define online banking a bit
more narrowly: online banking primarily focuses on remote deposits, money
transfers, bill pay, and basic online management of accounts. Other synonyms for
online banking include internet banking, virtual banking, and e-banking. So, online
banking focuses on digitizing the “core” aspects of banking, but digital banking
encompasses digitizing every program and activity undertaken by financial
institutions and their customers.

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 History of Digital Banking

1994
• Online Banking is built into Microsoft Money. 100,000 households begin accessing
their bank accounts online.
• Stanford Credit Union begins offering banking services via their website, paving the
way for credit unions and banks across the country.
2001: Online banking hits 20 million users, with 8 different U.S. banks achieving at
least a minimum of 1 million online users.
2002: Avoka was founded to help banks and financial institutions in their digital
transformations.
2007: The launch of the iPhone begins shifting digital banking from desktop
computers to smartphones.
2009: Online banking hits 54 million users in the United States.
2016: Millennials succeed in fundamentally shifting digital banking preferences,
signaling to banks that they must move all services online.

Digital Banking may be viewed as adoption of various existing and emerging

technologies by the banks, in concert with associated changes in internal operations as

well as external relationships for providing superior customer services and

experiences effectively and efficiently.

Today we find ourselves in a digital wonderland, where the milkman accepts wallet

payment without a fuss, a man buys a geometry set worth about Rs 100 for his

daughter using a credit card and the vegetable vendor uses QR code based “Scan &
Pay” utility.

The new innovative digital technologies and futuristic thought processes have given

birth to whole new businesses and social dimensions. Projects such as Make in India

and Digital India are now the buzzwords to a bright and sustainable industrial and

financial progress of our nation.

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As part of its impetus for DIGITAL TRANSFORMATION in India, Government also

encourages technology adoption / upgradation while providing connectivity with high

speed bandwidth to every nook and corner of the country. This has exposed the full

potential of the hitherto untapped market in India. Latest technology and service

offerings in the new age Digital Payments space by the Banks, such as Unified

Payments Infrastructure (UPI) including BHIM (Bharat Interface for Money) which is

a Mobile App developed by National Payments Corporation of India (NPCI), Bharat

Bill Payment System (BPSS), mobile money, e-wallets, payment aggregation etc.

have created a revolution by themselves.

Currently there are several technologies, infrastructure and processes available to

enable banks to become super-efficient and dependable banks. Adaptation and

implementation of highly capital intensive global technologies, infrastructure and

processes are decisive in order to remain ahead of the curve. Transition and

Interoperability related issues viz. from traditional banking to state of the art digital

banking such as data integrity, authentication (including third party authentication)

and trust factors in a digital banking environment are gaining importance. Digital

banking provides mission critical solutions to bankers for their short term and long

term business and technological requirements. Today, aspects such as enhanced

customer satisfaction and value through unified customer experiences, faster output,

infinite banking volumes, financial inclusion, operational efficiencies, scale of

economy etc. are being sought after, by leveraging digital banking and mobile
technologies. Becoming a digital bank can improve efficiency and provide a better

customer experience.

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Digital Banking – a boon or bane

Going by the deep penetration within a relatively lesser turnaround time, state-of-the-

art digital payment systems are now poised to take quantum leaps in this new era that

is largely driven by the ubiquitous Internet. These disruptive dynamics and revenue

models are literally the new game changers – causing tangible and tactical shifts

across major verticals. E-commerce and M-commerce success is largely attributed to

the phenomenal growth of various digital payment technologies such as card

payments, electronic fund transfers, payment gateways, ePayments, smart cards,

mobile money wallets etc. Pivotal to embracing such new age payment systems are

the people, technologies, and processes that have together created vast, robust and

dependable networks and seamless systems that guarantee humongous transactional

volumes at breakneck speed, with dependable security and counterchecks built around

them. All these and rest are taking India to the threshold of the big league and to make

the country battle ready to compete with the most influential industrial and financial

powers of global businesses. With digital banking and mobility, the need is no longer

to “leap-frog” but to “deep-dive” into the future. Going digital and mobile for a Bank

is no longer an option, it’s a simple bare necessity – to collaborate and flourish.

Today’s challenging digital payments ecosystem has become a burgeoning

marketplace. Banks have already started evaluating the reduction in number and size

of branches (both the number of units and the size of existing facilities). In addition,

the investment in digital technology to replace more expensive human interactions is

also being considered. This includes, but not limited to, tablets for universal bankers,

automated teller machines and digital kiosks to facilitate account opening and

customer inquiries. To be successful in a digital environment, banks focus on

improving their digital maturity across various dimensions of customer service.

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Customers’ Standpoint

Banks are now increasingly worrying about their very bastions being co-shared by a

string of new age players. And the end-customer is the single largest beneficiary –

with a bouquet of services and service providers to choose from and along with

hugely competitive pricing models. Banks will have to increase their operational

efficiency and improve the customer experience by meeting the customers’

expectations swiftly in order to keep their position in core markets.

The level of automation and digitalization of the account opening and on-boarding

process has become very crucial. The most important aspect is to improve the ability

for consumers to open any new account using digital channels and to efficiently

onboard the new customer digitally. In this area, traditional banks still differ

strikingly from the new market players who offer a convenient endto-end online

process.

The ability to offer basic as well as value-added content and functionalities through

digital channels is another important aspect. Value-added content and functionalities,

in contrast, will contribute strongly towards a positive customer experience. Value-

added functionalities include digital document safekeeping, access to financial news,

digital investing, personalized digital alerts, digital savings tools, online chat, social

media banking, elobbies etc., among others.

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Simplicity of design, availability of contextual offers and ability to personalize the

experience are definitely some of the key success factors. The differentiation between

competitors with regard to design and ergonomics will decide the winner. In the

coming days design will be a much bigger differentiator, with simplicity being the

overarching goal. Elements allowing consumers to personalize their digital banking

experience, such as contextual cross-selling, the ability to set up personalized digital

alerts and even the ability for the customer to design their own digital banking app

(font sizes, accessibility of certain functions, etc.) will gain prominence.

It is the ability to leverage customer insight for improved information access. All new

functionalities need to be part of the same digital banking application. Instead of

having every piece of functionality, bank can dream up crammed into one big-

honking mobile banking app. In the future, digital banking applications will be judged

based on the fewer number of touches/clicks needed to get from one screen to

another. Banks are forced set a goal to improve the individual customer experience.

The level of enhanced security available to protect identity and funds access is equally

imperative. Identity protection and account security will continue to be the focus area

as hacking incidents become more sophisticated and widespread. Banks have to

implement biometric security, including fingerprint technology, facial recognition or

voice recognition etc as part of person identification.

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Challenges of Digitalisation

Secure banking based on technology and its ramifications including cyber-crimes in

today’s digital banking landscape has to be reviewed continuously. The dark side of

being digital i.e. cyber security risks are to be taken care and risk mitigation measures

need to be strengthened. Advanced fraud detection mechanisms and the possibility to

leverage personalized security preferences and alerts will have to become more

widespread. For any security enhancement to be accepted and efficient will require

that the user experience is not impacted. Banks should consider investigating and

implementing additional layers of security that will reduce the potential for device

and account level fraud. While ready to manage breaches, the goal should be to

reduce the potential for losses and customer impact.

Use of advanced data analytics will help in combating several issues mentioned

above. Adoption of technology and convincing the customers to opt for self-service

modes of banking is the biggest challenge. In addition, consumers are becoming

impatient with banks who offer irrelevant products/solutions without proper study of

customer understanding. While new generation banks are performing better and better

with contextual offers that are based on collected insights, consumers expect no less

from traditional banks. Also the need to reduce costs and increase efficiency is

assuming more significance than ever. In this regard, improving a bank’s digital

maturity ensures higher efficiency in its processes such as credit offering, improved

interaction and customer experience.

Renewed skills development of workforce and investments into training and

manpower development is the need of the hour. Customer segmentation is another

aspect which will not only facilitate ease of interaction, but also enable targeted

product placement, thus increasing the likelihood of further acceptance.

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All the while, it is important to be conversant with the regulatory, security,

technology and business challenges that await both – traditional banks as well as the

latest entrants such as payment banks. Taking digital banking to the unbanked is

another task, a social obligation. Achieving financial inclusion targets by innovative

use of digital banking thereby promoting rural banking in a more comprehensive

manner cannot be forgotten.

Status Post Demonetisation

Recent demonetisation exercise of higher denomination notes by the government has

really accelerated the transformation of digital banking in India. Growth in the

number of digital transactions has been exponential since November 2016. Backed by

Government thrust, people of India finally seem to have accepted/embraced digital

economy.

Demand for cash is diminishing slowly. New payment initiatives such as Aadhaar-

linked cashless payment solution which enables a merchant to facilitate Aadhaar

based payment for cashless purchases by customers called ‘Aadhaar Pay’ and ‘Bharat

QR’, an integrated payment system using the customers’ mobile phone to pay through

debit or credit card by scanning a code at the merchant’s place etc., have come to stay.

However with all these revolutionary new technologies, improvement in operational

efficiencies in order to ultimately increase bottom lines and shareholder value will

remain a challenge for all banks. Role of analytics and innovative revenue models

need to be further fine-tuned. To reap maximum advantage in an increasingly digital

society, it is imperative that banks must demonstrate superior performance in all

spheres of customer service.

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 KYC AND ITS ADHERENCE

Know Your Customer - KYC enables banks to know/ understand their customers and
their financial dealings to be able to serve them better and manage its risks prudently.

To establish the identity of the client : This means identifying the customer and
verifying his/ her identity by using reliable, independent source documents, data or
information. For individuals, bank will obtain identification data to verify the identity
of the customer, his address/ location and also his recent photograph. This will be
done for the joint holders and mandate holders as well. For non-individuals, bank will
obtain identification data to:

• verify the legal status of the legal person/ entity

• verify identity of the authorized signatories and

• verify identity of the Beneficial owners/ controllers of the account

To ensure that sufficient information is obtained on the nature of employment/

business that the customer does / expects to undertake and the purpose of the account

No, KYC requirements have always been in place and Banks have been taking KYC
documents in accordance with the guidelines issued by RBI from time to time. RBI
has revisited the KYC guidelines in the context of recommendations made by the
Financial Action Task Force (FATF) on Anti Money Laundering standards and on
Combating Financing of Terrorism and enhanced the KYC standards in line with
international benchmarks

Yes. It is a regulatory and legal requirement. Regulatory: In terms of the guidelines

issued by the Reserve Bank of India (RBI) on 29th November 2004 on Know Your
Customer [KYC] Standards – Anti Money Laundering [AML] Measures, all banks
are required to put in place a comprehensive policy framework covering KYC
Standards and AML Measures.

21
Legal: The Prevention of Money Laundering Act, 2002 (PMLA) which came into
force from 1st July, 2005 (after “rules” under the Act were formulated and published
in the Official Gazette) also requires Banks, Financial Institutions and Intermediaries
to ensure that they follow certain minimum standards of KYC and AML as laid down
in the Act and the “rules” framed there under.

KYC will be carried out at the following stages:

Opening a new account Opening a subsequent account where documents as per

current KYC standards not been submitted while opening the initial account Opening
a Locker Facility where these documents are not available with the bank for all the
Locker facility holders When the bank feels it necessary to obtain additional
information from existing customers based on conduct of the account When there are
changes to signatories, mandate holders, beneficial owners etc

KYC will also be carried out in respect of non-account holders approaching the bank
for high value one-off transactions.

Your contact point in the Bank will be the Relationship Manager or the officer who
opens your account and who is in touch with you for your transactions.

The Bank will be entitled to refuse to open the account (if you are a prospective
customer) or discontinue its relationship with you citing non-providing of KYC
information / documents (if you are an existing customer).

However, for certain categories of customers who are not able to provide the
necessary documents, the Bank will open the account as per the flexibility provided
vide RBI DBOD circular no. AML.BC.28/14.01.001/2005-06 dated 23rd August,
2005.

Customer Identification Procedure: In line with the RBI mandate, the following
features need to be verified and the relevant documents must be obtained from
customers:

22
 Features Documents
Accounts of (i) Passport (ii) PAN card (iii) Voter’s Identity Card (iv) Driving license
individuals (v) Job card issued by NREGA duly signed by an officer of the State
• Legal name Government (vi) UIDAI (Aadhaar) Card
and any other
names used (i) Property or Municipal Tax receipt (not more than 1 year old) (ii)
• Correct Pension or family pension payment orders (iii) Letter issued by Foreign
permanent Embassy or Mission in India certifying/mentioning customer's current
address residential address. (iv) Any Identity Document issued by Government
department or agency of foreign jurisdiction (v) Identity card with
applicant's Photograph issued by Public Sector Undertakings, Scheduled
Commercial Banks, and Public Financial Institutions (vi) Letter issued
by a gazetted officer (with a duly attested photograph of the person
containing name, current address, permanent address, nationality and
DOB of the customer;) (vii) Utility bill (electricity, telephone, postpaid
mobile phone, internet, piped gas, water bill) (viii) Bank account
statement or Post Office savings bank account statement (Statement
should not be more than two months old & Bank account shall be of any
scheduled commercial Bank) (ix) Letter from employer
Please Note: Acceptance of above documents are subject to satisfaction
of the bank.
Accounts 1 of Certificate of incorporation and Memorandum & Articles of
companies Association
• Name 2 & Latest Annual Return with the ROC acknowledgement
registration
3 List of Directors and the Form 32s supporting their director status
details of4 the Resolution of the Board of Directors to open an account and
company identification of those who have authority to operate the account
• Principal place
5 Power of Attorney granted to its managers, officers or employees to
of business transact business on its behalf

23
 (registered6 PAN proof for the Company
address) 7 Any utility Bill for the operating address
• Operating8 Identity and address proof as applicable to accounts of individuals for
address of the all signatories, the Managing Director, the Chairman and signatories to
company the Board Resolution and all ultimate individual shareholders holding
• Telephone/Fax 10% and above capital of the company.
Number 9 KYC for any company which is a significant shareholder of this
company.
Accounts 1 of Registration certificate, if registered OR any business registration
partnership document (eg, Sales Tax Registration/ Service Tax Registration, Shops
firms & Establishments Registration, Factory Registration etc)
1 Evidence 2 Partnership deed copy
Legal name
3 Power of Attorney granted to any employee of the firm to transact
2 Evidence of business on its behalf
Address 4 Any utility bill in the firm’s name evidencing its operating address
(Registered
5 KYC documents for all partners and Power of Attorney holders
and Operating)
6 PAN proof for the Firm
3 Names of all
partners and
their addresses
4 Telephone
numbers of the
firm and
partners
Accounts 1 of Certificate of registration, if registered or PAN Allotment letter /
trusts & Acknowledged Income Tax Return, if not the Trust is not registered
foundations
2 Any utility Bill for the Operating and Registered address evidence
1 Names 3 of Trust Deed copy
trustees, 4 Power of Attorney granted to any employee to transact business on its
settlers, behalf
beneficiaries
5 Trust Resolution of the managing body of the foundation/association

24
 and signatories
6 KYC documents for the trustees, signatories and all beneficial owners
2 Names and with 10% and above share
addresses of
the founder,
the
managers/dire
ctors and the
beneficiaries
3 Telephone/fax
numbers

25
 HOW TO GET KYC DONE FOR BANK ACCOUNTS
Banks need to periodically update customer identification documents in their records
of account holders to adhere to the KYC norms issued by the Reserve Bank of India
(RBI). This can be triggered by a drastic change in the customer's profile or nature of
transactions in the account and depends upon the risk profile of the account holder.
In this regard, in addition to the KYC carried out at the time of account opening, the
account holders may be required to undergo KYC and submit relevant documents
periodically.

Enquiry with the bank

It is in the interest of good housekeeping of financial records to check the status of
accounts held with a bank and submit necessary KYC documents as and when
required. Banks also keep sending reminders to customers regarding re-submission of
KYC documents.
KYC declaration form
Customers are required to fill a KYC form. Personal information and contact details
need to be provided in the form. The form has to be signed by the account holder.

Documents
The customer needs to submit self attested copies of acceptable residential address
proof and identity proof. Submission of documents and KYC form can be done
physically by visiting the bank branch or by scanning the documents and uploading
the same on the Net banking portal.

Processing of request
Once the documents have been submitted physically or online, the bank usually takes
about 10 working days to process the request if the documents are found to be in
order.

Points to note
- In case of joint account holders, the KYC declaration form is required to be
submitted for each individual account holder
- If Aadhaar number has not been updated already in the bank records, a self attested

26
copy of the Aadhaar card also needs to be provided

submitting KYC documents are often requested by the banks when an account is
being held inactive for a longer period or when there are too many or too less changes
in the deposits or when the account is very old. That is depending on the risk category
of the customer, banks might ask to redo KYC formalities so that they can have their
database updated with the latest details of the customers. And banks do this, in order
to comply with the RBI guidelines and this is a very common process.
So if you think that carrying out too many transactions from different sources or move
to a different city or country and keep account inactive then resubmission of KYC
documents would be required. Banks will send you notification via E-mail or letter to
resubmit KYC documents.
Objective of asking for KYC benefits both the entity viz. bank and customer as
follows:
▪ Prevents money laundering
▪ Any type of fraud or irregularity
▪ Safeguard financial transactions of the person
KYC declaration form and mandatory documents:
KYC form is very simple which can be obtained from the bank or by scanning the
documents and uploading the same on the bank’s website (if the facility is available).
Banks can also send the form to their customer’s home. and here are the common
details required to be filled in the banks:

▪ Customer ID
▪ Account Number
▪ Personal details and address – Name, address, contact number
▪ Occupation and income details – Whether salaried, business, self employed,
housewife, student, company name, source of income, residence type, gross annual
income, nature of business
▪ Address and identity proof. Self attested.

27
▪ You also need to affix one photograph and sign the form.
▪ If the account is hold jointly, then each individual has to fill the form.
Once the customer completes all the mandatory documentation and other details,
banks will verify the same and take minimum 7 working days for processing the
request.
In what scenario, KYC is not required when:
▪ You move to another city or change residence
▪ Maintain the account actively
▪ Account is opened newly
▪ Have taken any type of loan such as personal/car/home etc.
▪ Have opened FD or RD account with the bank
Although failure in submitting KYC documents does not mean that account will be
sealed or closed. There is as such no guideline set by the RBI. Many banks viz. ICICI
bank, HDFC bank, Axis bank, IndusInd and others have started asking their
customers to redo KYC.

28
 RESEARCH METHODOLOGY
Research, a crucial phase significant obtaining, classifying and summarizing
data for generation of essential conclusions evidential for the project. So the
Research is a process of collecting, analyzing, interpreting and summarizing in a
significant manner for the purpose of framing out necessary conclusion and
findings of data perceived and formulated for deriving out the meaningful
information. To carry our research necessary telephonic calls needed to be done,
suitable appointments were to be fixed and therefore market survey is to be
followed.

Objective of training:

“DIGITAL BANKING AND ADHERANCE TO KYC NORMS,

A STUDY OF HDFC BANK ”

Process: Methodology or process involving in the Research followed during the

course of summer training is as follows: -

a) Collection of data: - This is an important aspect in formulating the objective of

research process where the data is collected via two process: - i) Primary
Sources and ii) Secondary sources

 Primary sources: - Where the data is collected primarily by interviewing and

personal observation and is original in nature and accurate to the considerable
extent.

 Secondary sources: -Where the data is obtained from some published and
printed sources such as newspaper, magazines, websites and so on.

29
b) Analyzing of collected data: - The data collected through market survey and
published sources is then processed to obtained necessary inferences and
findings for the purpose of achieving the objective as well as to derive necessary
conclusion. A considerable skill and knowledge is involved in analyzing the data
for the purpose of interpreting thereof.

c) Interpreting of data: - it is the significant step where the data collected and
analyzed is interpreted in the forms of graphs and figures is depicted in the
report called Project report.

d) Summarizing of data: - Thereby necessary summary is prepared which is

essential in the project report of the summer training being done under an
organization.

Questionnaire: - Questionnaire is a set or group of questions being framed for

the purpose of obtaining market perspective about a particular aspect or topic.
There are two types questionnaire bing carried necessary for the market survey
of the summer training being undertaken and put for the by the trainee to the
sample people taken as a base for entire population:

a) Open ended Questionnaire: - where the people (also called respondents) are
required freedom to present their views and suggestions for the benefits and
success of the organization.

b) Close ended questionnaire: - where the respondents is limited to the choice of

answer being delivered by the interviewer itself so that quick and fast means of
responses be derived out without wasting much time. Here close ended
questionnaire being followed by me during the course of the summer training
market survey.

Sampling: - Sampling is a process of obtaining a number of individuals taken a

base for the entire population since entire population can not be asked about the

30
 necessary objective upon which a questionnaire is put forth needed for the
responses to be derived for the purpose of generation of facts and customer view
point regarding their perception of particular product or services.

There are two type of sampling – i) Random Sampling and ii) Systematic
sampling.

1. Random sampling: - Random sampling is a process of selecting the sample

size randomly and no choice or preference to be made about the selection of
respondents for the market survey and questionnaire to be put forth against
him. Here, Random sampling being adopted by me.
2. Systematic sampling: - it is a sampling where the limited number of selected
respondents is figured out based on some criteria so that only those
respondents can be asked for the purpose of filing questionnaire.

Sample Size: - 100 respondents comprising of general public, professionals as well

as managers in organizations deal with financial services.

31
 ANALYSIS AND INTERPRETATION OF DATA

Q. 1 Do you believe that Digital banking has risen the banking era to new heights of
success and increase the role of banking in different sphere of present scenario?

Yes 55

To an extent 21

To a little extent 15

No 09

Digital banking has risen

9%

15%

Yes
55%
To an extent
21% To a little extent
No

32
Q. 2 which of the following areas of Digital banking as per you needs great focus:

Periodic monitoring of banking 33

transactions

Creating regular awareness to the account 34

holders

Strengthening firewalls and virus 19

protection measures

Frequent Updation and changes in the 14

system leading to dynamic functioning

Digital banking needs focus

Periodic
14% monitoring
33%

19% Creating regular

awareness

Strengthening
firewalls and
virus protection
34%
Frequent
Updation &
system changes

33
Q. 3 Do you agree that rising digital banking will create a scenario where the paper
money will be near to zero and people will safely and securely as per comfort trade
online?

Yes 58

To an extent 32

To a little extent 7

No 3

Digital banking leads to low paper

money
7% 3%

32%
Yes
58%
To an extent
To a little extent
No

34
Q. 4 Do you agree that digital banking has serious issues like hacking of accounts, money
stealing and credit card numbers and pins being hacked?

Yes 44

To an extent 28

To a little extent 17

No 11

Digital banking has serious issues attached

11%

17% 44%

Yes
To an extent
To a little extent
No
28%

35
Q. 5 According to you countries like India should more adhere to digital banking for
channelization of smooth money supply and overall growth of nations economy?

Yes 39

To an extent 31

To a little extent 21

No 09

Digital banking should be promoted in India

9%

21% 39%

Yes
To an extent
To a little extent
No
31%

36
Q. 6 KYC is essential due to:

To establish the identity of the client 34

verify the financial and legal status of the 19

legal person/ entity

verify identity of the authorized signatories 16

verify identity of the Beneficial owners/ 12

controllers of the account

To ensure that sufficient information is 19

obtained on the nature of employment/
business that the customer does / expects to
undertake and the purpose of the account

To identify client
KYC is essential due to
verify the financial
19% & legal status
34%

verify identity of the

12%
authorized
signatories

verify identity of the

16% Beneficial owners/
controllers
19%

To ensure that
sufficient
information on
employment/busines
s

37
Q. 7According to you KYC adherence will lead to

To be at par with the guidelines issued by 29

RBI from time to time

To keep a check on Anti Money 24

Laundering standards

To Combating Financing of Terrorism 23

To enhanced the KYC standards in line 24

with international benchmarks

KYC Adherance is due to at par with RBI

guidelines

24%
29%
keep check on
Anti Money
Laundering
standards

Combating
Financing of
23%
Terrorism
24%
enhanced KYC
standards with
international
benchmarks

38
Q. 8Are you in favour of compulsory adherence to KYC norms in banking ?

Yes 55

To an extent 32

To a little extent 10

No 03

Favour of Compulsory adherance to KYC

3%
10%

Yes
32% 55%
To an extent
To a little extent
No

39
Q. 9 Do you agree that Banks should frame their KYC policies incorporating the key
elements like Customer Acceptance Policy, Customer Identification Procedures,
Monitoring of Transactions; and Risk Management.

Yes 45

To an extent 32

To a little extent 12

No 11

Banks should frame policies for KYC

11%

12%
45%

Yes
To an extent
To a little extent
32% No

40
Q. 10 Do you think Strengthening the KYC norms and Strict security of Digital banking
will help in Combating Financing of Terrorism

Yes 72

To an extent 20

To a little extent 06

No 02

Strengthen KYC & Secure Digital Banking is essential in

combating Financial Terrorism
2%
6%

20%

Yes
To an extent
72% To a little extent
No

41
 RECOMMENDATIONS

Following recommendations are being made for the purpose of the report:

For Digital banking:

a) econcile (monitor) your banking transactions on a daily basis.

b) Maintain the integrity of your computer by scanning regularly for computer viruses.

c) If using the same computer for online banking, e-mail, and web browsing, always
LOG OFF from online banking sessions before checking e-mail or web browsing.

d) Install commercial anti-virus and desktop firewall software on all your computer
systems.

e) Ensure virus protection and security software are updated regularly.

f) Apply all computer manufacturer, operating system, and key application updates
regularly and as soon as they are available.

g) Consider installing a spyware detection program.

h) Clear the browser cache before starting an Online Banking session to eliminate
copies of web pages that have been stored on the hard drive.

i) Verify use of a secure session (https not http) in the browser for all online banking
activity.

j) Avoid using automatic login features that save usernames and passwords for online
banking.

k) Never leave a computer unattended while using any online banking or investing
service.

l) Create a strong password that will be easy to remember without writing it down.

42
For KYC

1. Banks should keep in mind that the information collected from the customer for the
purpose of opening of account is to be treated as confidential and details thereof are
not to be divulged for cross selling or any other like purposes. Banks should,
therefore, ensure that information sought from the customer is relevant to the
perceived risk, is not intrusive, and is in conformity with the guidelines issued in
this regard. Any other information from the customer should be sought separately
with his/her consent and after opening the account

2. Banks should ensure that any remittance of funds by way of demand draft,
mail/telegraphic transfer or any other mode and issue of travellers’ cheques for
value of Rupees fifty thousand and above is effected by debit to the customer’s
account or against cheques and not against cash payment

3. with effect from April 1, 2012, banks should not make payment of
cheques/drafts/pay orders/banker’s cheques bearing that date or any subsequent
date, if they are presented beyond the period of three months from the date of such
instrument.

4. Banks should ensure that the provisions of Foreign Contribution (Regulation)

Act, 2010, wherever applicable, are strictly adhered to.

43
 CONCLUSION

We see that although there are no shortcuts or guarantees to success, maintaining a

reasonable and disciplined approach to investing will increase the likelihood of
success over time.

The objective of KYC guidelines is to prevent banks from being used, intentionally or
unintentionally, by criminal elements for money laundering activities. Related
procedures also enable banks to better understand their customers and their financial
dealings.

Our KYC procedure specifies certain commonly available documents as proof of

personal identification and address proof, so as to not cause inconvenience to those
intending to open bank accounts in our Bank.

The Account Opening Form provides the nature of documents required / procedure to
be followed for opening a new account. Our Branch officials at the Account Opening
Desk will be able to provide guidance regarding the different types of documents
acceptable for opening any account.

44
Conclusively, what I got to understood is Digital banking & KYC adherance and its
significance that is highly growing in banking sector and in the years to come the
procedure of operations will accomplish the tasks like sky rockets and personnel will
be able to furnish more work in less time. It may be possible that in the years to come
with better investment product being provided and delivered that satisfied to the needs
of the customers may ousted the rigid thinking of present common man that the
investment are not safe today as the sector is also providing its growth opportunities.

45
 BILBIOGRAPHY

Books:

GORDON & NATRAJAN, Financial Service Management

CHANDRA PRASANNA, Financial Management, 2005

KOTHARI C.R.: Research Methodology Management, 3rd Edition

KOTLER PHILIP: Marketing Management” 11th Revised edition ,2002

GUPTA S.P.: Statistical Methods “ Thirteen revised edition, 2001

Magazines & Newspaper:

The Times of India

The Business Standard

India Today

Business World

46
Websites:

a) How to get Digital banking & KYC adherance done for bank accounts - The
Economic Times
economictimes.indiatimes.com › Wealth › Save
b) Digital banking & KYC adherance Form for Individuals - HDFC Bank
https://www.hdfcbank.com/assets/pdf/REKYC_Form_individual.pdf
c) Saving Digital banking & KYC adherance Forms.cdr - Axis Bank
https://www.axisbank.com/docs/default-source/download...Digital banking & KYC
adherance/rekyc2.pdf?
d) Redo your KYC if bank asks for it; it's for your own good - Livemint
www.livemint.com › Money › Personal Finance
e) KYC | Update KYC - ICICI Bank NRI Services
https://www.icicibank.com/nri-banking/update-kyc.page
f) Digital banking & KYC adherance: Importance, Form Details, Documents Required
- AllOnMoney
www.allonmoney.com/banking/resubmit-know-your-customer-details/
g) Banks urge old customers for resubmission of KYC documents - Firstpost
www.firstpost.com › Investing News
h) Getting Digital banking & KYC adherance done for bank accounts - Kotak
Moneywatch
https://www.kotakmoneywatch.com/index.../982-getting-Digital banking & KYC
adherance-done-for-bank-accou
i) Digital banking & KYC adherance diligence of NRE or NRO or FCNR (B) account
- SBI Online
https://www.onlinesbi.com/nri/pdf/NRI_18.5.pdf

47
 QUESTIONNAIRE
NAME: _______________________________________

ADDRESS: _______________________________________

AREA OF SPECIALISATION: ___________________________

Q. 1 Do you believe that Digital banking has risen the banking era to new heights of
success and increase the role of banking in different sphere of present scenario?

 Yes
 To an extent
 To a little extent
 No

Q. 2 which of the following areas of Digital banking as per you needs great focus:

 Periodic monitoring of banking transactions

 Creating regular awareness to the account holders
 Strengthening firewalls and virus protection measures
 Frequent Updation and changes in the system leading to dynamic functioning

Q. 3 Do you agree that rising digital banking will create a scenario where the paper
money will be near to zero and people will safely and securely as per comfort trade
online?

 Yes
 To an extent
 To a little extent
 No

48
Q. 4 Do you agree that digital banking has serious issues like hacking of accounts, money
stealing and credit card numbers and pins being hacked?

 Yes
 To an extent
 To a little extent
 No

Q. 5 According to you countries like India should more adhere to digital banking for
channelization of smooth money supply and overall growth of nations economy?

 Yes
 To an extent
 To a little extent
 No

Q. 6 KYC is essential due to:

 To establish the identity of the client

 verify the financial and legal status of the legal person/ entity
 verify identity of the authorized signatories and
 verify identity of the Beneficial owners/ controllers of the account
 To ensure that sufficient information is obtained on the nature of employment/
business that the customer does / expects to undertake and the purpose of the account

49
Q. 7According to you KYC adherence will lead to

 To be at par with the guidelines issued by RBI from time to time.

 To keep a check on Anti Money Laundering standards
 To Combating Financing of Terrorism
 To enhanced the KYC standards in line with international benchmarks

Q. 8Are you in favour of compulsory adherence to KYC norms in banking ?

 Yes
 To an extent
 To a little extent
 No

Q. 9 Do you agree that Banks should frame their KYC policies incorporating the key
elements like Customer Acceptance Policy, Customer Identification Procedures,
Monitoring of Transactions; and Risk Management.

 Yes
 To an extent
 To a little extent
 No

Q. 10 Do you think Strengthening the KYC norms and Strict security of Digital banking
will help in Combating Financing of Terrorism

 Yes
 To an extent
 To a little extent
 No

50
Suggestions: -

1. _____________________________________________________
2. _____________________________________________________
3. _____________________________________________________
4. _____________________________________________________
5. _____________________________________________________

51