1. Preamble:
  2. The Reserve Bank of India (RBI) has issued comprehensive ‘Know Your Customer’ (KYC) Guidelines to all Non-Banking Financial Companies (NBFCs) in the context of the recommendations made by the Financial Action Task Force (FATF) and Anti Money Laundering (AML) standards and Combating Financing of Terrorism (CFT) policies as these being used as the International Benchmark for framing the stated policies, by the regulatory authorities. In view of the same, Si creva Capital Services Pvt. Ltd. has adopted the said KYC guidelines with suitable modifications depending on the activity undertaken by it. The Company has ensured that a proper policy framework on KYC and AML measures are formulated in line with the prescribed RBI guidelines and duly approved by its Board of Directors of the Company The NBFCs have been directed vide Non-Banking Financial Company – Non-Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016 that all applicable NBFCs having customer interface shall follow the Know Your Customer (KYC) Directions, 2016, issued by the Department of Banking Regulation of RBI, as amended and updated from time to time.
    This policy has been framed in accordance with the Master Directions – Know Your Customer (KYC) Direction, 2016 issued vide RBI Circular No. DBR.AML.BC.No.81/14.01.001/2015-16 dated February 25, 2016 as updated and amended from time to time.
    Pursuant to any subsequent amendments or any statutory modifications or re-enactments in the above stated guidelines / norms / clarifications or in any other applicable acts / regulations, if there is any change in any of the parameter(s) framed by the Board, then the act / regulation will have overriding effect on the parameter(s).

  3. Objectives:
  4. To have a clearly laid out:

    • Customer acceptance policy,
    • Risk Management policy,
    • Customer Identification process and
    • Monitoring of transactions
    • with a view to: –

      • put in place an effective system and procedure for customer identification and verifying its / his / her identity and residential address and conduct customer due diligence (CDD) based on the risk factor associated with each customer;
      • have in place a system of assessing and monitoring the risk factors associated with each customer;
      • put in place a system of checks and balances to ensure formulation and effective implementation of procedures to help control and mitigate the risk of occurrence of financial frauds, swiftly identify probable transactions of money laundering and related suspicious activities and safeguarding Si Creva from being unwittingly used as a conduit for transfer or deposit of funds derived from criminal activity or for financing of terrorism, irrespective of whether such money can be traced to a specific act of terrorism or not;
      • monitor transactions of a suspicious nature and report the same to the Financial Intelligence Unit- India (FIU- IND); verification and maintenance of records of transactions of customers in accordance with PMLA and the Rules made thereunder;
  5. Definitions:
  6. For the purpose of this Policy, – “Customer” means a person who is engaged in a financial transaction or activity with a Regulated Entity (RE) and includes a person on whose behalf the person who is engaged in the transaction or activity, is acting.
    Other terms not specifically defined here shall have the same meaning as assigned to them under the KYC Directions, 2016 or the PMLA.

  7. Customer Acceptance Policy (CAP), Risk Management, Customer Identification Procedure (CIP), Monitoring of Transactions:
  8. a.Customer Acceptance Policy

    • Customers who are acceptable to si creva as per the Risk categorization should fulfill all criteria related to submission of Officially Valid Documents (OVD) as defined by RBI from time to time and more specifically stated under the Customer Identification Procedure in the table set out separately.
    • Si Creva shall refrain from opening an account, where Si Creva is unable to apply appropriate Customer Due Diligence (CDD) measures.
    • In the event, the customer is permitted to act on behalf of another person/entity, Si creva shall verify that the customer has the necessary authority to do so by scrutinizing the authorizing document/s.
    • An account shall not be opened in an anonymous or fictitious/ name(s) and Si Creva will also use RBI caution advices in determining the customer acceptance framework.
    • Optional’/additional information, shall be obtained with the explicit consent of the customer after the account is opened.

    b.Risk Management

    • Risk categorization of customers shall be undertaken on the basis of various factors, such as nature of employment, business activity of the customer, location of customer and his/its clients, mode of payments, volume of turnover, social / financial status and credit history. Si Creva may at its discretion identify additional factors (like Business or Profession, Credit Score, Age, Income, Residence Pincode, etc.) that it may wish to utilize for customer acceptance based on risk profile determined by Si Creva.
    • The company may categorize its customers into ‘High Risk / Medium Risk / Low Risk’ according to risk perceived based on its experience and review it from time to time. The company may devise procedures for creating risk profiles of its existing and new customers and apply various Anti- Money Laundering measures keeping in view the risks involved in a financial transaction or a business relationship. The company’s internal audit and compliance functions shall play an important role in evaluating and ensuring adherence to KYC policies and procedure, including legal and regulatory requirement. The compliance in this regard is being and will continue to be put up before the Board of Directors of the Company on a periodical basis.

    c. Customer Identification Procedure

    • Si Creva shall ensure that customer identification process is undertaken, whenever an account based relationship is being established.
    • While undertaking customer identification, Si creva shall ensure that the decision-making functions of determining compliance with KYC shall not be outsourced.
    • Si Creva shall be adequately satisfied with the information furnished by each new customer with respect to identity of the customer and the purpose of the intended nature of relationship with Si creva. The satisfaction of Si creva with respect to the information/ documents furnished by the customers should be such that if circumstances necessitate, Si creva shall ensure that it is in a position to satisfy the competent authorities that CDD was duly observed by Si creva, based on the risk profile/categorization of the customer
    • s stated in the Customer Acceptance Policy, Si creva shall ensure that its customer is not a fictitious person by verifying the identity of the customer through documentation and shall also carry out necessary checks, so as to confirm that the identity of the customer on the basis of the documents obtained does not match with any person with known criminal background or with banned entities, such as individual terrorists or terrorist organizations.
    • One or more of the following valid self-attested documents may be called for from the customers as OVD, containing details of proof of their identity and address:

    d. Type of Customer Officially Valid Documents Identity proof: (Copy of one of the following)

    • Passport
    • Driving License
    • Income Tax PAN Card
    • Voter’s Identity Card issued by Election Commission of India,
    • Job card issued by NREGA duly signed by an officer of the State Government,
    • Letter issued by National Population Register containing details of name and address
    • Aadhar Card (as may be permitted under the Unique Identification Authority of India Act or Rules as amended and updated from time to time). The Company may carry out offline verification of a customer if he is desirous of undergoing Aadhar offline verification for identification purpose. In cases where successful authentication has been carried out, other OVD and photograph need not be submitted by the customer.

    e. Residence proof: (Copy of one of the following)

    • Utility Bill (Latest Telephone / Post-paid mobile / Electricity bill / Piped Gas bill / Water bill)
    • Property or Municipal Tax receipt
    • Passport
    • Driving License
    • Aadhar Card (as may be permitted under the Unique Identification Authority of India Act or Rules as amended and updated from time to time). The Company may carry out offline verification of a customer if he is desirous of undergoing Aadhar offline verification for identification purpose. In cases where successful authentication has been carried out, other OVD and photograph need not be submitted by the customer.
    • leave and license agreements with Owner of house accompanied with the Utility bill in owner’s name for the same property.
    • letter of allotment of accommodation from employer issued by State Government or Central Government Departments, statutory or regulatory bodies, public sector undertakings, scheduled commercial banks, financial institutions and listed companies and leave and license agreements with such employers allotting official accommodation;
    • A copy of the marriage certificate or Gazette notification, in case of change in name
    • The e-KYC service of Unique Identification Authority of India (UIDAI) shall be accepted as a valid process for KYC verification under the PML Rules. ○ In case of OTP based e-KYC, Biometric or physical KYC is completed within 12 months. If Biometric or physical KYC is not completed within 12 months, accounts to suspended immediately.
    • One self attested latest photo of the customer is obtained from customer in conjecture with the Identity proof.
    • In addition to verification through one or more of the above said documents, the company may also call for suitable introduction by a person known to the company/group companies.

    For On-line Applications:
    For online loan applications, the Company would rely on the KYC process undertaken by the banker (being an RBI regulated entity) of the customer. Hence, it is mandatory for a customer to have a bank account and the customer has to mandatorily provide, apart from copy of PAN Card and Address Proof, a copy of bank Cheque and NACH Form (for auto-debit of future EMIs) and if customer is NOT able to provide required & valid documents, the loan application would be Rejected.
    For cash loans offered through franchisee partners
    In case of Cash Loans offered through Franchisee partners, copy of PAN Card and Address Proof would be taken and customer profile verification (CPV) would be done by the Recovery Agencies under the direct supervision of the Company’s staff comprising the Recovery Team, before disbursement of loan to customer. CPV aims to verify KYC compliance including whether customer stays on the given address, and if he has a clean reputation in his area of residence

    • Simplified procedure for opening accounts by Non-Banking Finance Companies (NBFCs):
    • In case a person who desires to open an account is not able to produce KYC documents, Si creva may, at its discretion, open accounts by following the simplified procedure, as may be prescribed by RBI from time to time.
      While opening accounts as described above, the customer would be made aware that if at any point of time, balances in all their accounts taken together shall not exceed rupees fifty thousand (Rs. 50,000/-) at any point of time and total credit in the account exceeds rupees one lakh (Rs.1,00,000), no further transactions will be permitted until the full KYC procedure is completed.
      The customer shall be notified when the balance reaches rupees forty thousand or the total credit in a year reaches rupees eighty thousand that appropriate documents for conducting the KYC must be submitted otherwise the operations in the account shall be stopped when the total balance in all the accounts taken together exceeds the limits prescribed hereinabove.
      If an existing KYC-compliant customer of Si creva desires to open another account with Si creva, there shall be no need for a fresh CDD exercise.
      A Unique Customer Identification Code (UCIC) shall be allotted while entering into new relationships with individual customers as also the existing customers by NBFCs.

    • Adherence to Know Your Customer (KYC) guidelines by persons authorised as agents, etc.

      • Persons authorised as collection agents shall be fully compliant with the KYC guidelines
      • All information shall be made available to the RBI to verify the compliance with the KYC guidelines and accept full consequences of any violation by the agents who are operating on behalf of the Company.
      • The books of accounts of persons authorised as agents or the like, insofar as they relate to agency functions of the company, shall be made available for audit and inspection whenever required.
    • Identification of Beneficial Owner
      For opening an account of a Legal Person who is not a natural person, the beneficial owner(s) shall be identified and all reasonable steps to verify his/her identity shall be undertaken keeping in view the following:

      • Where the customer or the owner of the controlling interest is a company listed on a stock exchange, or is a subsidiary of such a company, it is not necessary to identify and verify the identity of any shareholder or beneficial owner of such companies.
      • In cases of trust/nominee or fiduciary accounts, whether the customer is acting on behalf of another person as trustee/nominee or any other intermediary is to be determined. In such cases, satisfactory evidence of the identity of the intermediaries and of the persons on whose behalf they are acting, as also details of the nature of the trust or other arrangements in place shall be obtained.
  9. Monitoring of Transactions:
    • The company normally does not and would not have large cash transactions in any customer account. However, if and when cash transactions of Rs.10 lakhs and above are undertaken, the company will keep proper and month wise record of all such cash transactions in a separate register maintained at its office.
    • The company shall monitor transactions of a suspicious nature on an ongoing basis for the purpose of reporting it to the FIU as required under PML Act. The extent of monitoring by the Company will depend on the risk sensitivity of the account and special attention will be given to all complex unusually large transactions, which have no apparent economic or lawful purpose.
    • The company shall promptly report such high value cash transactions or transactions of a suspicious nature every month to the appropriate regulatory and investigating authorities, as per the provisions of the PMLA and the Rules.
    • Si creva shall exercise caution with respect to the transactions with persons (including legal persons and other financial institutions) from the countries which have been identified by Financial Action Task Force (FATF) as high risk and non-cooperative jurisdictions with respect to compliance with the FATF Recommendations, 2012.
      • On-going Due Diligence
        Si creva shall undertake on-going due diligence of customers to ensure that their transactions are consistent with their knowledge about the customers, customers’ business and risk profile; and the source of funds. The extent of monitoring shall be aligned with the risk category of the customer.

      • Periodic Updation
        Periodic updation shall be carried out at least once every two years for high risk customers, once every eight years for medium risk customers and once every ten years for low risk customers

      • Enhanced Due Diligence
      • Accounts of Politically Exposed Persons (PEPs):
        Politically Exposed Persons (PEPs) are individuals, who are or have been entrusted with prominent public functions in India, e.g., Heads of States/Governments, senior politicians, important political party officials, etc. Generally, Si creva would not open accounts of PEP. Decision to deal with such persons as a customer shall be taken up at a senior management level and shall be subjected to enhanced monitoring.
        Note: Senior Management would comprise (i) Director, (ii) Head Business Operations and (iii) Customer Service Manager.

      • Client accounts opened by professional intermediaries:
        Si creva shall ensure that no professional intermediary, who cannot reveal the identity of a customer should be allowed to open such an account with it.

      • Information obtained from Customers
        All the information collected from the customers by Si creva shall be kept confidential and all such information shall be treated as per the agreement/terms and conditions signed by the customers, and subject to applicable laws. Additionally, the information sought from each customer should be relevant to the risk perceived in respect of that particular customer, should not be intrusive and should be in line with the guidelines issued by the RBI in that behalf.

      • Record Management
        Si creva shall take steps in the direction of maintenance and preservation of the records pertaining to KYC and transactions for the time duration of 5 years for KYC-related and transaction-related documents as prescribed by RBI.

      • Other Requirements
        All other requirements under FATCA/CRS/PML/FIU-Ind relating to appointment of designated officer/director, principal officer and reporting requirements relating to filing of Suspicious Transaction Report (STR), Cash Transaction Report (CTR), counterfeit currency report (CCR) and other applicable reports filling under FATCA will be complied with in terms of the direction of the RBI or the other authorities to the extent applicable to Si creva.