ACCOUNT OPENING: I-T RETURN, UTILITY BILLS MUST FOR FIRMS, SAYS RBI

Banks should seek the complete income-tax return and utility bills in the name of proprietary firms for opening their accounts, according to the RBI.

The indicative list of required documents for opening accounts of firms now include: the complete income-tax return (not just the acknowledgement) in the name of the sole proprietor and utility bills such as electricity, water, and landline telephone bills in the name of the proprietary firm, said a Reserve Bank of India notification.

The IT return should reflect the firm’s income, duly authenticated/ acknowledged by the Income Tax Authorities.

In August 2010, a RBI notification on Know Your Customer guidelines for opening accounts of proprietary concerns said banks could also accept any registration/ licensing document issued in the name of the proprietary concern by the Central Government or State Government Authority/Department.

Banks may also accept Importer Exporter Code issued to the proprietary concern by the office of the Directorate-General of Foreign Trade as an identity document for opening of bank account.

SOURCE: http://www.thehindubusinessline.com/industry-and-economy/article3327906.ece