KYC Documentation Policy

IIFL Finance Ltd. (IIFL) has adopted this code to provide transparency in business dealings with its customers.

The purpose of this document is to establish Know Your Customer (KYC) documentation policy for the IIFL Finance Limited (IIFL). All the loans originated by IIFL would follow this KYC documentation policy. This policy is integral part of KYC & AML Policy of the company.

Note: In case of any update in the documents submitted by the customer at the time of account establishment / thereafter, Customers shall submit the updated documents to the Company within 30 days.

KYC Documents

For undertaking CDD (Customer Due Diligence), Regulated Entity shall obtain following documents mentioned under Category (1) & (2) both and such other documents may be required by the RE

Sr No. Document Particulars Mandatory to provide Document in this category Will be considered as Identity Proof Will be considered as Address Proof
1) PAN or the equivalent e-document thereof or Form 60 (in case of PAN not available)

Note: In case where only Form 60 is provided the same can be accepted as ID proof along with the one of OVD’s (officially valid document) as mentioned below containing the details of identity and address.

 Yes Acceptable Not Acceptable
2) The Aadhar Number (Proof of possession of Aadhaar number) or any one of the Officially valid documents (OVD) or equivalent e documents given below for proof of identity and proof of address (in case offline verification is not possible): Yes Acceptable (Only if documents thereof contain the details of identity) Acceptable
Category (2) mentioned above explained in detail

All products of IIFL have same KYC documentation policy defined in their respective manuals. In case of any change issued by regulator through circular, the required changes were required to be done separately in each manual.

This document will enable us to make changes in only one document which will be followed by all products/businesses and will standardize the KYC documentation policy throughout the organization.

“Officially Valid Document” would mean and include following Documents: Will be considered as Identity Proof Will be considered as Address Proof
Passport (OVD) Acceptable Acceptable
Driving Licence (OVD) Acceptable Acceptable
Proof of possession of Aadhaar number (To be submitted in such form as are issued by the Unique Identification Authority of India) Acceptable Acceptable
Voter ID card issued by the Election Commission of India (OVD) Acceptable Acceptable
Job card issued by NREGA duly signed by an officer of the State Government (OVD) Acceptable Acceptable
Letter issued by the National Population Register containing details of name and address (OVD) Acceptable Acceptable
In case where OVD is furnished which does not have current address following shall be obtained as Deemed OVD and will be considered for proof of address *
Deemed OVD Will be considered as Identity Proof Will be considered as Address Proof
1. Utility bill which is not more than two months old of any service provider (electricity, telephone, post-paid mobile phone, piped gas, water bill) Not acceptable Acceptable
2. Property or municipal tax receipt Not acceptable Acceptable
3. Pension or family pension payment orders (PPOs) issued to retired employees by Government Departments or Public Sector Undertakings, if they contain the address Not acceptable Acceptable
Below additional documents can be taken as an additional proof to the above mentioned OVD
Additional Documents
  • Physical bank statement with current address not older than 3 months.
  • Rent agreement with remaining validity of at least 3 months.(Stamp or franked with date of registration)
  • Life insurance policy receipt.
  • Ration Card.
  • E Statement with current address or Net banking.
  • Bank passbook with latest month transaction in it.

*In the cases where customer is submitting deemed OVD as mentioned above for limited proof of address they will submit updated OVD within a period of 3 months of submitting the same.

*a certified copy of any of the deemed OVD to be obtained

(Obtaining a certified copy by the Company shall mean comparing the copy of the document so produced by the Customer with the original and recording the same on the copy by the person authorized by the Company)

Where a person submits his Aadhaar Number for the purpose of proof of identity and / or address, it shall be ensured such person redacts or blacks-out his Aadhaar Number through appropriate means.

The acceptance, use and storage of Aadhaar, proof of possession of Aadhaar etc., shall be in accordance with the Aadhaar (Targeted Delivery of Financial and Other Subsidies Benefits and Services) Act, the Aadhaar and Other Law (Amendment) Ordinance, 2019 and the regulations made thereunder, the RBI KYC Master directions and other circulars, notification, guidelines issued by the Reserve Bank of India in this regard.

KYC details / application form is required to be in line with prescribed format (CKYC template) for uploading data with Central KYC Record Registry

A document shall be deemed to an “officially valid document” even if there is a change in the name subsequent to its issuance, provided it is supported by a marriage certificate issued by the State Government or a Gazette notification, indicating such a change of name”.

Accordingly, a copy of marriage certificate issued by the State Government or Gazette notification indicating change in name together with a certified copy of the ‘officially valid document’ (as indicated above) in the existing name of the person while establishing an account-based relationship or while undergoing periodic updation exercise may be accepted.

Sr. No. KYC Document to be obtained for carrying CDD
Sole Proprietorship

Any two of the following documents or the equivalent e-documents thereof in the name of the proprietary concern needs to be obtained as a proof of business/activity if the loan is in the name of Proprietorship Firm (Main Applicant)

  1. Registration certificate including Udyam Registration Certificate (URC) issued by the Government
  2. Certificate / licence issued by the municipal authorities under Shop and Establishment Act.
  3. Sales and income tax returns.
  4. CST/VAT/GST certificate
  5. Certificate/registration document issued by Sales Tax/Service Tax/Professional Tax authorities.
  6. IEC (Importer Exporter Code) issued to the proprietary concern by the office of DGFT / Licence/certificate of practice issued in the name of the proprietary concern by any professional body incorporated under a statute.
  7. Complete Income Tax Return (not just the acknowledgement) in the name of the sole proprietor where the firm's income is reflected, duly authenticated/acknowledged by the Income Tax authorities.
  8. Utility bills (electricity, water, and landline telephone bills) Additional documents
  9. Bank account Statement of last six months in the name of the entity (not from a non-scheduled cooperative bank) along with positive Field investigation report

A copy of the following documents to be obtained: - Documents to be obtained from Proprietor – Documents to be obtained from “Individual Customers” i.e. (– Please refer to documents to be obtained from “Individual Customers” for verifying identity and address)

Where the Company is satisfied that it is not possible to furnish two such documents, the Company may accept only one of those documents as proof of business/activity; provided contact point verification has been undertaken and such other information and clarification has been collected which would be required to establish the existence of such firm, and the Company shall confirm and satisfy itself that the business activity has been verified from the address of the proprietary concern.

KYC Template / information in prescribed format for uploading data with Central KYC Record Registry

Note: In case one document is collected as activity proof for proprietorship concerns instead of two; then Contact Point Verification (CPV) is mandatory and cannot be waived.
Companies

Certified copy of each of the following documents or the equivalents e- documents shall be obtained:

  • Certificate of incorporation;
  • Memorandum and Articles of Association;
  • Permanent Account Number of the Company
  • A resolution from the Board of Directors and power of attorney granted to its managers, officers or employees to transact on its behalf;
  • Documents to be obtained from beneficial owner, managers, officers or employees holding an attorney to transact on behalf of company (Please refer to documents to be obtained from “Individual Customers” for verifying identity and address)
  • KYC Template / information in prescribed format for uploading data with Central KYC Record Registry
    • the names of the relevant persons holding senior management position; and
    • the registered office and the principal place of its business, if it is different
Partnership Firms

Certified copy of each of the following documents or the equivalents e-documents thereof shall be obtained:

  • Registration certificate;
  • Partnership deed; and
  • Permanent Account Number of the partnership firm
  • KYC Template / information in prescribed format for uploading data with Central KYC Record Registry and
  • Documents from beneficial owner - For documents to be obtained from beneficial owner, person holding an attorney to transact on behalf of the Partnership Firm – Please refer to documents to be obtained from “Individual Customers” for verifying identity and address
  • the names of all the partners and
  • address of the registered office, and the principal place of its business, if it is different.
Trusts and Foundations

Certified copy of each of the following documents or the equivalents e-documents shall be obtained:

  • Registration certificate;
  • Trust deed and
  • Permanent Account Number or Form 60 of the trust
  • KYC Template / information in prescribed format for uploading data with Central KYC Record Registry and
  • Documents form beneficial owner - Below documents to be obtained from beneficial owner, person holding an attorney to transact on behalf of the Trust – Please refer to documents to be obtained from “Individual Customers” for verifying identity and address
    • the names of the beneficiaries, trustees, settlor and authors of the trust
    • the address of the registered office of the trust; and
    • list of trustees and documents, as specified in Section 16, for those discharging the role as trustee and authorised to transact on behalf of the trust.
Unincorporated association or a body of individuals

Certified copy of each of the following documents or the equivalents e-documents shall be obtained:

  • Resolution of the managing body of such association or body of individuals;
  • Power of attorney granted to him to transact on its behalf;
  • Permanent Account Number of Form 60 of the unincorporated association or a body of individuals
  • Documents from beneficial - For documents to be obtained from beneficial owner, person holding an attorney to transact on behalf of the unincorporated association / body of individuals -– Please refer to documents to be obtained from “Individual Customers” for verifying identity and address
  • KYC Template / information in prescribed format for uploading data with Central KYC Record Registry

Explanation: Unregistered trusts/partnership firms shall be included under the term ‘unincorporated association’.

Explanation: Term ‘body of individuals’ includes societies.
Customer who is a juridical person (not specifically covered in the earlier part) such as societies, universities and local bodies like village panchayats, etc., or who purports to act on behalf of such juridical person or individual or trust

Certified copy of each of the following documents or the equivalents e-documents shall be obtained:

  • Document showing name of the person authorised to act on behalf of the entity
  • For documents to be obtained from person holding attorney to transact on behalf of the entity - Please refer to documents to be obtained from “Individual Customers” for verifying identity and address
  • Such documents as may be required by the Company to establish the legal existence of such an entity/juridical person.
  • KYC Template / information as prescribed by the Reserve Bank of India for uploading data with Central KYC Record Registry
  • Such other documents as may be prescribed from time to time

IIFL shall ensure that in case of customers who are non-profit organizations, the details of such customers are registered on the DARPAN Portal of NITI Aayog. If the same are not registered, RE shall register the details on the DARPAN Portal. REs shall also maintain such registration records for a period of five years after the business relationship between the customer and the RE has ended or the account has been closed, whichever is later.

Note:

  1. Self-attested Photograph of the applicant & Co-applicant is mandatory, however digitally captured live photograph is acceptable.
  2. The KYC documents/ Officially Valid documents can be verified by the employees/ representatives/ service providers *of IIFL.
  3. For the purpose of verifying the identity of customers at the time of commencement of an account-based relationship, Company shall at their option, rely on customer due diligence done by a third party, subject to the following conditions:
    • Records or the information of the customer due diligence carried out by the third party is obtained within two days from the third party or from the Central KYC Records Registry.
    • Adequate steps are taken by IIFL to satisfy themselves that copies of identification data and other relevant documentation relating to the customer due diligence requirements shall be made available from the third party upon request without delay.
    • The third party is regulated, supervised or monitored for, and has measures in place for, compliance with customer due diligence and record-keeping requirements in line with the requirements and obligations under the PML Act.
    • The third party shall not be based in a country or jurisdiction assessed as high risk.
    • The ultimate responsibility for customer due diligence and undertaking enhanced due diligence measures, as applicable, will be with the IIFL.
  4. KYCs of all beneficial owners shall be collected which means-
    1. Ownership of more than 10% shares in a company or
    2. More than 10% of ownership in other forms of entities (LLP / Partnership firms etc.)
    3. 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.
    4. 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 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.
  5. Digital KYC” means the capturing live photo of the customer and officially valid document or the proof of possession of Aadhaar, where offline verification cannot be carried out, along with the latitude and longitude of the location where such live photo is being taken by an authorised officer of the IIFL as per the provisions contained in the Act
  6. “Equivalent e-document” means an electronic equivalent of a document, issued by the issuing authority of such document with its valid digital signature including documents issued to the digital locker account of the customer as per rule 9 of the Information Technology (Preservation and Retention of Information by Intermediaries Providing Digital Locker Facilities) Rules, 2016.
  7. Video based Customer Identification Process (V-CIP)”: an alternate method of customer identification with facial recognition and customer due diligence by an authorised official of the IIFL by undertaking seamless, secure, live, informed-consent based audio-visual interaction with the customer to obtain identification information required for CDD purpose, and to ascertain the veracity of the information furnished by the customer through independent verification and maintaining audit trail of the process. Such processes complying with prescribed standards and procedures shall be treated on par with face-to-face CIP for the purpose of this Master Direction.
     

    All other regulatory changes in this regard will stand updated in the policy from time to time.