Terms & Conditions governing Current Accounts. To be read in conjunction with Axis Bank Sri Lanka General Terms and Conditions

Transcription

1 Terms & Conditions governing Current Accounts To be read in conjunction with Axis Bank Sri Lanka General Terms and Conditions

2 Contents 1. Scope of this document Product details and features Process flow KYC / AML diligence Complaint handling mechanism...6 Annexure I...7 Annexure II...8

3 1. Scope of this document This document aims to define the terms and conditions governing acceptance of current deposits by branches of Axis Bank in Sri Lanka. For general terms and conditions governing all deposits please refer to document Axis Bank Sri Lanka General Terms and Conditions. 2. Product details and features i. Account type Current Accounts are non-interest bearing operative accounts maintained with the Bank where the balance is repayable on demand.no restrictions on number of debits and credits in these accounts. ii. Who can open an account 1. Individuals (Single or Joint); including non-residents; in DBU 2. Proprietorship Concerns; 3. Partnership Firms; 4. Limited Companies; 5. Corporations; 6. Association, Clubs, Societies, Trusts, NGO s etc.; 7. Executors and Administrators and Liquidators; 8. Banks. iii. Who can open an account 1. Non-resident Sri Lankan; in FCBU 2. Non Nationals; 3. Companies registered outside Sri Lanka; and 4. Companies registered with the Board of Investment (BOI) in Sri Lanka. Accounts will be opened only for entities that are eligible as per the Banking Act and CBSL Guidelines. iv. Minimum requirements to 1. In case of individuals, the primary customer must be aged 18 open an account years or more. 2. The customer should be able to submit a valid proof of identity and a valid address and undergo successful checks as per Axis Bank s policies in this regard. 3. Firms and Companies should produce the prescribed documents establishing the identity and address of the firm / company along with KYC of Authorised signatories as per regulatory requirements of Sri Lanka and undergo successful checks as per Axis Banks policies in this regard. For details refer Annexure II v. Mode of operations: Individual Accounts 1. Singly by the customer; or 2. The Power of Attorney Holder. Joint Accounts 1. Jointly by all the Holders; or 2. Either or Survivor; or 3. Former or Survivor; or 4. Any One or Survivor. Proprietorship Firms 1. Singly by the proprietor; or 2. The Power of Attorney Holder. (Signature of the proprietor under the firm s stamp) Partnership Firms 1. Jointly by all partners; or 2. Either of the partners (where there are 2 partners), as specified by partnership deed; or 3. Any one partner (where there are more than 2 partners), as specified by partnership deed; or 4. Jointly by any two (or three or more) of the partners, as specified by partnership deed; or 5. Singly as specified by partnership deed; or 6. The Power of Attorney Holder as applicable. Public and Private Limited 1. As per board resolution of the company Companies

4 vi. Minimum deposit amount LKR USD AUD EUR GBP JPY 50, vii. Maximum deposit amount Different schemes (under Current Accounts) will have different monthly AVERAGE balance requirements. The Bank has powers to change the minimum balance requirements from time to time. Deposits will be opened in the DBU and FCBU. No maximum deposit limit viii. Currency Sri Lankan Rupee LKR US Dollar USD Australian Dollar AUD Euro EUR British Pounds Japanese Yen GBP JPY Hong Kong Dollar HKD Singapore Dollar SGD Canadian Dollar CAD This list may be amended from time to time in tune with Central Bank of Sri Lanka (CBSL) guidelines. Page 2 of 10

5 ix. Account Operations Deposit of Funds A customer can deposit funds in Current Account in the following ways: 1. by instructing another bank to make an electronic SWIFT transfer; 2. by transfer from an account with another bank to the customer s Account with us through SLIPS; 3. by visiting one of Axis Bank Sri Lanka branches and depositing a cheque or cash; 4. by Standing Instruction order through another bank; 5. by depositing cash or cheque into any of the Bank s ATMs enabled with deposit facility located at the Bank s branch or elsewhere by using the account holder s own debit card. (All transactions through ATM s are subject to Terms and Conditions applicable for those machines.) 6. Funds received from abroad, through banking channels approved by the Government of Sri Lanka will alone be accepted for deposit in foreign currency and in Non-resident accounts. Withdrawal of Funds A customer can withdraw funds from the Current Account in the following ways: 1. By transfer of funds through net banking to a specified account at our Bank in Sri Lanka; 2. By transfer of funds through SLIPS to a specified account at another Bank in Sri Lanka; 3. By transfer of funds through international electronic transfer (SWIFT) to a bank account in another country. Please refer to our Schedule of Charges for further details.the bank receiving the payment may also impose charges that are outside our control. 4. By withdrawal across the counter through cheque. 5. By withdrawal from ATMs through debit card (As and when enabled for certain types of account). 6. Cheque Books will NOT be provided to accounts denominated in foreign currency. In such accounts, debits will be effected on the basis of written request from the customer and subject to other applicable exchange control regulations in Sri Lanka. 7. In case of Foreign Currency Accounts, debits can be made only for purposes specified under the Exchange Control Regulations as applicable to various segments of customers. The Terms and conditions for execution of instructions will be available from the concerned branch. x. Tenor Not Applicable xi. Interest rates No interest in Current Account. xii. Interest payment frequency Not Applicable xiii. Interest payment method Not Applicable xiv. Review of interest rates Not Applicable xv. Updation of interest rates Not Applicable xvi. Value dating of Current Not Applicable Account deposits xvii. Loyalty rates Not Applicable xviii. Tax status- Withholding Tax Not Applicable xix. Bonus payments Not Applicable Page 3 of 10

6 xx. Fees and charges xxi. Transaction Limits xxii. Transaction Confirmation xxiii. Statements xxiv. Closing the Account xxv. In the event of death xxvi. Deposit protection xxvii. Security features and access control The Bank has the right to introduce or vary charges after giving the customer due notice of any change. Please check the Schedule of Charges for the same. There is no limit on daily transactions in Current Account. However, online transfers from other accounts with Axis Bank Sri Lanka would be maximum LKR 50, per transaction per day, where such facility is provided to the account. For information on limits on daily cash deposits, and charges applicable to amounts beyond the free limits, the account maintaining branch may be contacted. Customers have to check their Account statement and transactions therein regularly. If any entry appears to be wrong, this needs to be brought to the notice of the Bank within 30 days of receipt of the statement. Customers who have been provided with net banking facility have the option to check the website / s for confirmation of instructions given by them through the website. Otherwise, the bank will consider the acceptance of the statement as accurate. Printed statements are issued every month to all accounts. Additional printed statements and duplicate printed statements are issued on a chargeable basis, as per our Schedule of Charges. Statements are also issued every month and sent by to all eligible Accounts. (For details please check the Terms and Conditions of the individual schemes). Any account holder can request for monthly e-statements which are sent only to the address of the customer registered with the bank account. Customers who are registered for internet banking are additionally able to generate, download and print statements between two given dates through our internet banking portal. The customer may close the account at any time by giving a written notice. Details are provided in the document Axis Bank Sri Lanka General Terms and Conditions. 1. In case of death of the individual customer (other than joint accounts) the nominee(s) is / are entitled to monies lying in the customer s account. If no nominee has been appointed, then the law of succession in Sri Lanka will apply. 2. In case of joint accounts the remaining holders shall have the option of continuing with the account. In such cases, the name of the primary holder will be replaced / substituted in Finacle. This will be done by the Branch Head and Operations Head only. 3. The Bank shall always call for a death certificate, grant of probate, certificate of confirmation and/or grant of representation or any other document it may deem necessary and sufficient for establishing the genuineness of any claim before allowing access to any of the funds in the account. The Bank will be covered by the Sri Lanka Deposit Insurance Scheme (SLDIS), as per the details in the document Axis Bank Sri Lanka General Terms and Conditions. Serially Numbered Non-personalized Cheque Books would be made available to the branch. These should be stored at the branch in the same manner as other security stationery. Branch will have to affix the account numbers on each cheque leaf before handing over the Cheque Book to the customer. The Bank may decide to issue cheque books from a centralized processingcentre at a later date. Once the centralized processing starts, branch may stop issuing cheque books locally except in rare cases. Cheque Books will NOT be provided to accounts denominated in foreign currency. Page 4 of 10

7 xviii. Liability Bank s liability is restricted to repayment of the credit balance in the account. Under the SLDIS, eligible depositorsare covered to a limit of LKR 200,000.00per Bank, across all deposits and all currencies. xxix. Inactive and Dormant If the account does not have any CUSTOMER INDUCED transaction Accounts in the account for a period of 12 months, the Bank will classify the account as inactive and for another 12 months thereafter, it will be classified as dormant account. The customer will have to contact the Bank to activate the account. 3. Process flow Opening Account Visits the Branch with all a. On receipt of the application, Bank to verify if all relevant documents for information is in order and carry out the KYC checks. Single opening of the account. For list of documents required, please refer to Customer Annexure II b. If successfully processed, Bank to open the account. c. If not successfully processed the customer is to be advised of the additional information/ documents required. d. If KYC / AML process fails, the Bank will Seek documents (ID / Address Proof from customer) to enable completion of the process. If Bank is unable to conduct the KYC, for any reasons, despite best efforts, the Bank to intimate customer of its inability to open the account. Opening All holders visit the Branch a. On receipt of the application the Bank to verify if all Account and submit the completed information of ALL holders is in order and open the Joint Holders AOF. account. For list of documents required, please refer to Annexure II b. Bank will follow the same process for all holders as done for single customers. Opening All authorized operators a. On receipt of the application the Bank to verify if all Account visit the Branch and submit information of ALL holders is in order and open the Firms, the completed AOF. account. For list of documents required, please refer Companies to Annexure II and non- b. Bank will follow the same process for all holders as individuals done for single customers. Account a. Deposit amount into a. If Cheque is returned unpaid the Bank to contact the operation the account through customer and advise on the status. cash or cheque for b. On successful funding, issue cheque book and funding. b. Transacts in welcome kit as applicable to specific schemes. the c. Cheque Books will NOT be provided to accounts account as per denominated in foreign currency. In such accounts, paragraph 4 (ix) above. debits will be effected on the basis of written request from the customer. Others 4. KYC / AML diligence The Bank will have a stringent Know Your Customer (KYC) checking policy and no account will be opened without it being KYC compliant. Regarding KYC/ AML checks the bank will be extremely prudent and will practice physical verification. Online Banking facility, when enabled will be only provided to customers who are fully KYC compliant. Page 5 of 10

8 To be competitive the Bank needs to complete this exercise within a specified turnaround time without in any way compromising on the KYC standards. The AML software and process in vogue in India operations will be replicated in Sri Lanka with appropriate changes 5. Complaint handling mechanism The Bank has a system in place for fair and expeditious handling of customer s grievances. Customers may send mail to complaints.slk@axisbank.com for this purpose. For more details, please see ComplaintHandling Procedurein our website. Page 6 of 10

9 Annexure I The regulations governing Withholding Tax for Sri Lanka are summarized below: All tax calculations pertain to Domestic Banking Unit (DBU) (SOL 921) only. All accounts in the Foreign Currency Banking Unit (FCBU) (SOL 922) are exempt from tax. All tax calculations pertain to Lanka Rupee (LKR) currency only. The interest from all types of liability accounts (Savings, Term Deposits, and Recurring Deposits) is considered for withholding tax. The interest includes interest paid and interest accrued to the applicable accounts. The withholding tax will be considered at the customer level for the BANK as a whole, and not at the BRANCH level. All customers will be required to give the Income declaration in the prescribed form at the beginning of the financial year. All COMPANIES are to be taxed at 10.00% only, no slabs, no exempt limits. All Certificates of Deposit (CD) are to be taxed at 10.00% only, no slabs, no exempt limits. All PARTNERSHIP FIRMS are to be taxed at 8.00% only, no slabs, no exempt limits. All CHARITABLE TRUSTS income declaration can have twoslabs o Interest upto LKR NIL. o Interest above LKR %. All INDIVIDUALS customer income declaration can have three slabs o Interest upto LKR NIL. o Interest above LKR upto LKR %. o Interest above LKR %. In case of JOINT HOLDERS, if there is no mandate from the customer, the interest is to be equally apportioned amongst all the joint holders. In case of SAVINGS ACCOUNTS the interest upto LKR PER MONTH PER CUSTOMER is exempt from tax. If an individual has more than one savings account, then the exemption of LKR per month is for one account only. This account number has to be mentioned by the customer and captured by the system. Even if the declaration by the individual customer is different from the interest ACTUALLY earned from the bank, tax will be deducted on the basis of the declaration, and not as per the actual accrued interest amount. In such cases a report will be required so that the users can contact the customers for a revised declaration. In case the declaration by the charitable institution is different from the interest ACTUALLY earned from the bank, tax will be deducted on the basis of the declaration, and not as per the actual accrued interest amount. In such cases a report will be required so that the users can contact the customers for a revised declaration.

10 Annexure II DOCUMENTS REQUIRED BY THE BANK FOR COMPLETION The following table details the documents that are required to open an account. Please ensure that all Documents mentioned below are submitted along with the Account Opening Form Clubs, NGOs, Documents Limited Sole Documents / Requirements Partnership Societies & Individuals Company Proprietorship received by Trusts the Bank Account Opening Form Mandate / Board Resolution Partnership Agreement Certificate of Incorporation / Certificate of Re Registration Articles of Association List of Directors (Form 48 / Form 20 / Form 1) Business Registration Certificate Constitution / Rules National ID or Passport copies of Authorized Signatories Utility Bill copies of Authorized Signatories if address differs from NIC BOI Agreement Section 17 and Certificate Export Development Board (EDB) Certificate or Exchange Control Approval Approval from relevant Government Ministry / Authority Placing of rubber stamp alongside signatures Documents should be certified by Company Secretaries / Notary Public or Original Document to be sighted by any official of Axis Bank Requested for accounts to be opened in Foreign Currency Banking Unit (FCBU) - In the name of Companies Incorporated in Sri Lanka and authorized to open accounts in the FCBU For Exporters' Foreign Currency Accounts In case of Partnerships, please produce the original of "Partnership Agreement" Authorized Signatories should place rubber stamp alongside signatures Page 8 of 10