KYC & AML Policy

KYC & AML Policy for Salary Baba

IDF Financial Services Pvt. Ltd. is an RBI-registered NBFC specializing in short-term personal loans.

1. Objective

To prevent misuse of the NBFC's services for money laundering, terrorist financing, and other unlawful activities by implementing robust Know Your Customer (KYC) and Anti-Money Laundering (AML) procedures.

2. Regulatory Framework

• RBI Master Direction – KYC, 2016 (updated as on August 14, 2025).
• Prevention of Money Laundering Act (PMLA), 2002.
• RBI's AML/CFT guidelines and all subsequent circulars and amendments.

3. Customer Acceptance Policy (CAP)

• No account shall be opened anonymously or under fictitious/benami names.
• Mandatory collection of valid identity and address proof before loan disbursal.
• Enhanced due diligence for high-risk customers such as PEPs or NRIs.
• Accounts shall not be opened if the customer refuses to provide required documentation.

4. Customer Identification Procedure (CIP)

• Verification through valid KYC documents such as Aadhaar, PAN, Passport, or Voter ID.
• Biometric authentication via UIDAI where applicable.
• Video KYC permitted for onboarding, subject to regulatory compliance.
• Periodic re-KYC for existing customers based on their risk categorization.

5. Risk Categorization

• Low Risk: Salaried individuals and government employees.
• Medium Risk: Self-employed and small business owners.
• High Risk: Politically Exposed Persons (PEPs), cash-intensive businesses.
• Risk-based KYC updating frequency will apply accordingly.

6. Monitoring of Transactions

• Automated alert systems will identify suspicious activities such as frequent cash deposits or round-tripping.
• Threshold-based reports will be generated for FIU-IND.
• Real-time flagging of high-value or unusual transactions.

7. Record Keeping

• Maintain KYC records for at least 5 years post account closure.
• Transaction records retained for 5 years from the transaction date.
• All data will be securely stored and made available for regulatory inspection when required.

8. Reporting to Authorities

• Suspicious Transaction Reports (STRs) will be filed with FIU-IND within prescribed timelines.
• Cash Transaction Reports (CTRs) will be filed for cash transactions over ₹10 lakh.
• Compliance with RBI's AML/CFT periodic reporting formats will be ensured.

9. Employee Training & Accountability

• Ongoing employee training on KYC/AML procedures, red flags, and escalation processes.
• Standard operating procedures for onboarding, documentation, and verification.
• Defined accountability and escalation matrix for credit and operations teams.

10. Internal Audit & Review

• Quarterly internal audits focused on KYC/AML compliance effectiveness.
• Annual policy review by senior management and the Board.
• Timely corrective measures for any lapses or identified deficiencies.