KYC Policy

KYC 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.

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.

KYC Documents
Mandatory Document:ID ProofAddress Proof
PAN or the equivalent edocument thereof/ Form 60 (in case of PAN not available)

Note: In case Form 60 provided the same cannot be accepted as an ID proof

MandatoryX
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):  
Proof of possession of Aadhaar number (if offline verification is possible) e-Aadhaar/QR code embedded in Aadhaar Card
Or
Proof of possession of Aadhaar number (OVD), Masked Aadhaar (if offline verification is not possible)
Or any OVD or the equivalent e documents thereof containing the details of identity and address)

Note:The first 8 digits of the Aadhaar Number while storing physical copy or digitally obtained Aadhaar Card or eAadhaar must be masked/redacted.
Masked Aadhaar may be obtained only if voluntarily offered by the customer

AcceptableAcceptable
Passport (OVD)AcceptableAcceptable
Driving Licence (OVD)AcceptableAcceptable
Voter ID card issued by the Election Commission of India (OVD)AcceptableAcceptable
Job card issued by NREGA duly signed by an officer of the State Government (OVD)AcceptableAcceptable
Letter issued by the National Population Register containing details of name and address (OVD)AcceptableAcceptable
Deemed proof of address alongwith one of the OVD mentioned above in case the OVD furnished by the customer does not have current address *:  
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 acceptableAcceptable
property or municipal tax receiptNot acceptableAcceptable
pension or family pension payment orders (PPOs) issued to retired employees by Government Departments or Public Sector Undertakings, if they contain the addressNot acceptableAcceptable
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 licence agreements with such employers allotting official accommodationNot acceptableAcceptable
Additional documents  
Physical bank statement with current address not older than 3 monthsNot acceptableAcceptable
Rent agreement with remaining validity of at least 3 months
(Stamp or franked with date of registration)
Not acceptableAcceptable
Life insurance policy receiptNot acceptableAcceptable
Ration CardNot acceptableAcceptable
eStatement with current address or NetbankingNot acceptableAcceptable
Bank passbook with latest month transactions in itNot acceptableAcceptable

*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 authorised 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.

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
  2. Certificate/licence issued by the municipal authorities under Shop and Establishment Act.
  3. Sales and income tax returns.
  4. CST/VAT/GST certificate (provisional/final).
  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 not more than two months old).
  9. Bank account Statement of last six months in the name of the entity (not from a non-scheduled cooperative bank) alongwith 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)

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) 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 IIFL – (– 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

     

Partnership Firms

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

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

  • Registration certificate;
  • Partnership deed; and
  • Permanent Account Number of the partnership firm

AND

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

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

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

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
  • 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.

Juridical person not specifically covered in the earlier part such as societies, universities and local bodies like village panchayats

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

Note:

  1. Self-attested Photograph of the applicant & Co-applicant is mandatory, however digitally captured 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 REs 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 RE.
  4. KYCs of all beneficial owners shall be collected which means-
    1. Ownership of more than 25% shares in a company or
    2. More than 15% 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 RE 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 RE 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.