A SUMMER INTERNSHIP PROJECT REPORT ON

“A STUDY OF BANK’S COMPLIANCE OF THE KYC GUIDELINES

PARTICULARLY IN OLD AND EXISTING ACCOUNTS”

PRESENTED BY:PRAMOD KUMAR

ROLL NO.090101076

IntroductionReserve Bank Of India has vide their circulars dated 16.8.2002 and 19.9.2002 issued several guidelines on ‘Know Your Customer’ norms and advised all banks to follow certain customer identification procedure for opening of accounts and monitoring transactions of suspicious nature for the purpose of reporting it to appropriate authority.The guidelines issued were:1.Know Your Customer standards2.Customer Acceptance Policy3.Customer Identification Procedure4.Monitoring of Transactions5.Risk Management6.Customer Education7.Introduction of New Technologies8.Appointment of Principal Officers

Objective of the project

i) To ensure appropriate customer identification.

ii) To monitor transactions of a suspicious nature.

iii) To study the brand image of the bank.

iv) To find out the customers preferences while opening an account.

v) To increase the business of the bank

vi) New accounts should be open strictly on the basis of KYC norms

Research methodologyPrimary data source:

The method of collection of primary data was direct personal interview

through a structured questionnaire.

Secondary data source : It was collected from internal sources. The secondary

data was collected on the basis of organizational file, official records,

news papers, magazines, management.

Sampling Plan

Sampling Units : customers

Sampling Technique: Random sampling

Research Instrument: Structured Questionnaire

Contact Method : Personal interview

Sample size: 100 respondents

conclusion1. Branches of the banks should be advised to exercise due care

to ensure compliance and desist from opening accounts in the

name of banned organizations and those without requisite

registration.

2. All financial transactions records should be retained for at

least five years after the transactions has taken place.

3. Branches of banks are required to report all cash deposits

and withdrawals of Rs.10 lakhs and above as well as

transactions of suspicious nature with full details in fortnightly

statements to their controlling offices.

4.All the services of the bank should be clearly communicated to the customers.

5.Customers are the king so proper care should be taken while dealing with them

Suggestions and recommendations1. Executive should be trained to explain the products feature and its value

added services to make customers product selection convenient.

2. Executives should recommend right product to the right customer so as

to ensure a high degree of satisfaction among the customer

3. The bank needs to make people aware about there products and the

basic benefits they can derive out of it.

4. 70% of the people did not even know about the concept, benefits and

features of its saving accounts.

5. KYC guidelines should be strictly implemented in the banks.

6. The biggest problem with the KYC is the non existence of a unique

identification number for every individual in the country.

Limitations1. The survey was conducted in a limited area.

2. The survey was conducted with the help of self administered

questionnaire.

3. The respondents were found short of time so the responses may

not real.

4. The respondents were limited so can’t be treated as whole

population.

5. All the interpretation and analysis of data is on the basis of the

respondents responses which might be bias up to some extent.

THANKS