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CKYC for Bank Account of ABC Tenants Group
1 week ago
Now that the CKYC is required for the Bank account of such Tenant Association, the Bank is asking for the PAN no of such joint account of the Tenants Association viz. 11 tenants jointly opened a savings account in the name of ABC Tenants Association & all 11 tenants had submitted their individual PAN & Aadhar; But now bank is asking for the PAN of this ABC Tenants Association (Which is not registered any where) & the purpose of the account is only towards repairs & maintenance of the tenanted building
The Bank authorities are saying if the CKYC is not done then the Bank account may be frozen in some time
Please help & show us the wat out
A.Dear Client,
An association intending to carry out activities with certain purpose must legally be registered under the Societies Registration Act. The PAN and other documents are vital to open a bank account or to use the funds in the bank. Further, in case the account is managed by an association, the individual members PAN or documents cannot be accepted for CKYC purposes. The association being a separate entity must be duly registered in order to transact the funds through the bank account. Failure to register or provide a PAN of the association, might lead to freezing of the bank account. Hence, it is advisable to register the association and follow the mandates laid down by the bank.
Hope it helps.
Thank you.
An association intending to carry out activities with certain purpose must legally be registered under the Societies Registration Act. The PAN and other documents are vital to open a bank account or to use the funds in the bank. Further, in case the account is managed by an association, the individual members PAN or documents cannot be accepted for CKYC purposes. The association being a separate entity must be duly registered in order to transact the funds through the bank account. Failure to register or provide a PAN of the association, might lead to freezing of the bank account. Hence, it is advisable to register the association and follow the mandates laid down by the bank.
Hope it helps.
Thank you.
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A.Dear Client,
An association is a body of individuals and an association is required to be registered under the Societies Registration Act to make it a legal entity to apply for PAN. So when you are opening in the name of an association, the PAN or other documents of individual members of the association are not acceptable for CKYC purposes. The Bank has rightly asked for the PAN of the association for opening and operating a bank account in the name of the association. Thus, on registration of the Association with the concerned registration authority and on receipt of PAN in respect of the association, a Bank Account can be opened in the name of the association.
An association is a body of individuals and an association is required to be registered under the Societies Registration Act to make it a legal entity to apply for PAN. So when you are opening in the name of an association, the PAN or other documents of individual members of the association are not acceptable for CKYC purposes. The Bank has rightly asked for the PAN of the association for opening and operating a bank account in the name of the association. Thus, on registration of the Association with the concerned registration authority and on receipt of PAN in respect of the association, a Bank Account can be opened in the name of the association.
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