Definition of customer:

• a person or entity that maintains an account and/or has a business relationship with the HFC;

• one on whose behalf the account is maintained (i.e. the beneficial owner);
• beneficiaries of transactions conducted by professional intermediaries, such as Stock Brokers, Chartered Accountants, Solicitors, etc. as permitted under the law, and
• any  person or entity connected with a financial transaction which can pose significant reputational or other risks to the HFC, say, a wire transfer or issue of a high value demand draft as a single transaction.

1.    Customer Acceptance Policy (CAP) – An individual or institution placing the deposit under HUDCO Public Deposit Scheme or subscribing to Bonds issued by HUDCO is to be identified as a customer.  The customer’s profile should contain the following information:

a.    Customer’s identity  - Proof of legal name and any other name used/ residential and official address.

b.    Social/financial status – Status of customer i.e. individual, HUF, Trust, cooperative domestic company, etc.

c.    Nature of business activity – Type of employment/ business carried out by the customer.

d.    Customer’s location details – Address proof of customer in relation with the address specified on application form.

Information taken from the customer should be in confirmity with the guidelines issued and any other information from the depositor should be sought separately with his/her consent.

Since HUDCO is not in banking business issues pertaining to following areas are not being built in guidelines: -

                         I.    Opening of accounts

                       II.    Location of customer and his clients

                      III.    Volume of turnover

                      IV.    Not to open or close an existing account, if due diligence measures cannot be applied

                        V.    When account is operated by mandate holder

                      VI.    Necessary checks to be applied while opening a new account so that the matching with other person, with known criminal background is ruled out.