By Registered Post

NHB(ND)/DRS/Pol-No.08/2004-05
March 31, 2005

TO ALL REGISTERED HOUSING FINANCE COMPANIES (HFCs)

Dear Sir,

“KNOW YOUR CUSTOMER (KYC)” GUIDELINES –IDENTIFICATION OF CUSTOMERS EITHER THROUGH DOCUMENTARY EVIDENCE OR BY PERSON KNOWN TO THE HFC

Please refer to our Circular No. NHB(ND)/DRS/POL-No.02/2004-05 dated August 24, 2005 wherein the “KYC” guidelines were introduced by NHB for Housing Finance Companies (HFCs), with effect from October 1, 2004. As per clause 2.1 of these guidelines, a customer should be introduced by a person known to the HFC in addition to establishing identity through PAN, passport, ration-card, driving license, election commission identity card etc., in case of individuals and registration certificate, partnership deed/agreement etc and other reliable documents in respect of companies, firms and other bodies.

2. In the light of the suggestions/representation received from HFCs, the matter has been examined by us and it has been decided to modify the guidelines regarding customer identification by HFCs, whereby customer identification can be done either based on disclosures made by customer themselves (like PAN, ration-card, passport etc.) or introduction by a person known to the HFC.

Yours faithfully
-Sd/-
General Manager
Department of Regulation & Supervision