TASC Trusts, Associations, Societies, Clubs

September 03, 2011

Lest you forget

The contents of presentation is for information and does not supersede any of the e-circular or views of Control Groups Legal / Compliance For all clarifications on documentation, please refer e-circular no.7495 or any other circular as prevailing from time to time

Agenda
TASC Segment - Overview

Products
Segments and Documentation Channel / Products Precautions FAQ

TASC Segment - Overview

Trusts (Education, Medical, Religious, Charitable)

Association -(Chamber of Commerce,Trade, Sports) Societies-(Urban Coop, Primary Agri, Housing, Non credit) Clubs -(Lions, Jaycees, Sports) Sec. 25 Companies (Non profit) Autonomous Bodies (AICTE, Universities, IIM, IIT) Disaster Relief Funds (Central, State, Private) Judicial authorities (Tribunals, Court, Official liquidator) Defence (Canteen Store Depot, Unit Run Canteens, Regimental Funds)

Products (Major)
Fixed Deposits / Recurring Deposits Money Multiplier Fixed Deposits Special Savings Account

Current Accounts
Constituent Subsidiary General Ledger (CSGL) Fee Management Services

Fixed Deposits / Recurring Deposits

Account Opening Form - Series 340 KYC documents as per circular no.7495 Traditional FD - Monthly and quarterly payout Cumulative FD Quarterly compounded (minimum period 6 months and not 181 days, maximum period 10 years) Deals of Rs.1crore and above

Deal needs to be entered and approved in ODBS Link http://10.16.168.136/ODBS/Forms/login.aspx Deal Cannot be entered after value date Even deals done at card rate need to be entered in ODBS

No special rates for FD below 1 Crore

Money Multiplier Fixed Deposits

Offered with Special Savings Account AOF Money Multiplier FD form Existing FD can also be linked Cumulative FD in multiple of Rs.5 K created subject to minimum balance in SSA to be Rs.25 K Automatic reverse sweep on LIFO (Last in first out) basis in case of need of funding in SSA Minimum FD period of 1 year FD at card rate only Special rate fd including 390,590 days etc cannot be linked

TDS on Fixed Deposits

Entities exempt from provisions of TDS,

List of such entities is covered in FAQ 7 circular 7495 Documentation mentioned in FAQ 7 circular 7495

TDS exemption document for trusts, societies etc.

Once FD is opened customer applies to IT with details of the FD Customer submits Certificate U/s.197 issued by IT to avail exemption from TDS on interest u/s 194A

Special Savings Account (SSA)

Product Features

AOF to be used - Series 340 List of entities eligible to open SSA as per Master Circular of RBI on Deposits Account opening and modifications at RPC
If FCRA is to be facilitated, the AOF need to be sent to Mumbai RPC for a/c opening Subsequent modifications in FCRA can be done at local RPC

Money Multiplier (linked FD can be offered) For Product features - Circular No.8323 For KYC documents - Circular No.7495

No SSA should be opened with interest flag as NIL

Prohibition to Open SSA

List of entities prohibited to open Savings Account Guidelines as per RBI a) Government departments/bodies depending upon budgetary allocation for performance of their functions b) Municipal Corporations or Municipal Committees c) Panchayat Samiti d) State Housing Boards e) Water and Sewerage / Drainage Boards / Metropolitan Development Authority / State / State Text Book Publishing Corporations / Societies / District Level Housing Co-op. Societies etc. e) Any political party or trading or business concern, whether such concern is a proprietary or a partnership firm or a company or an association.

Entities Allowed to open SSA by RBI

The prohibition to open savings as given earlier does not apply to the following

Primary Co-operative Credit Society, which is being financed by the bank.

Khadi and Village Industries Boards Agriculture Produce Market Committees Societies registered under the Societies Registration Act, 1860 or any other corresponding law in force in State or a Union Territory except societies registered under the State Co-operative Societies Act and specific state enactment creating Land Mortgage Banks. Companies governed by the Companies Act, 1956 which have been Licensed by the Central Government under Section 25 of the said Act, or under the corresponding provision in the Indian Companies Act, 1913 and does not add to their names words Limited or Private Limited

Entities Allowed to open SSA by RBI..2

Institutions whose entire income is exempt from payment of Income tax under the Income-Tax Act, 1961

Government departments /bodies/agencies in respect of grants/ subsidies released for implementation of various programs / schemes sponsored by Central/State Government subject to production of an authorization from the respective Government departments to open savings bank account
Development of Women and Children in Rural Areas (DWCRA) Self-help Groups (SHGs), registered or unregistered Note Form 225 for opening Savings Account is to be used and accounts of SHG are not opened by TASC team. Farmers Clubs

Proof of I T Exemption....1
Type of entity Document Society registered under Societies Registration Act or any other Registration Certificate corresponding law in force in State or a Union Territory. Primary Co-operative Credit Society Registration Certificate I) 12 AA registration certificate issued by Income Tax ii) Copy of nil returns Iii) Annexure XVII declaration Registration Certificate

Trusts

Section 25 Cos.

Khadi and Village Industries Boards

Registration Certificate

Proof of I.T. Exemption .2

Provident fund to which the Provident Funds Act, 1925 applies Letter on the letterhead from the provident fund that it is exempt u/s 10 (25)(i) Recognition certificate income-tax authorities from

Recognized provident fund

Approved superannuation fund

Approval copy from income-tax authorities Approval copy from income-tax authorities

Approved gratuity fund

Regimental Fund or Non-public Fund established by the armed Refer to documentation as per forces of the Union under section circular 7495 FAQ 6 10(23AA)

Current Account

TASC customers not eligible for SSA can open

RCA M2O For FCRA enabled accounts, only M2O with Zero balance to be offered Ivy a/c cannot be offered to TASC customers For M2O, online calculator to be filled on http://10.16.218.166/billingmodule/Forms/login.aspx

Modification done by COPS Product Circular

For RCA No.2079 / M2O No.2955

AOF to be used Series 340 KYC doc as per circular no. 7495

Made2Order (M2O) Calculator

Path for LAM request to create id
http://lam.icicibankltd.com/LA_RequestForms.aspx

Path for downloading M2O calculator

Universe> Business Group>WBG>Applications> Calculators>Made2Order Current A/c for Open Office

Path for logging into online M2O module to upload the calculator
http://10.16.218.166/billingmodule/forms/login.aspx

Approved Schedule of Charges (pdf format) needs to be downloaded and signed by customer

CSGL A concept

It is a Demat account to park Central and State Govt loans and treasury bills Used by Banks and PF/Pension/Gratuity trust to park investments as per regulatory guidelines Who can open CSGL account
PF / Banks / Corporate / Financial Institutions / Companies / NBFC / Trust / Societies / Individuals Maintain stock of Govt Securities / treasury bills Purchase Sale Participate in non competitive bid for auction Receive interest and redemption proceeds of

Clients can undertake following activities

Settlement

Trading takes place on Negotiated Dealing System (NDS) managed by Clearing Corporation of India Ltd. Trade happens on Delivery V/s Payment System
Client submits deal slip to branch in original and faxes same to COG SMS in Hyderabad COG SMS blocks funds in account (purchase) or verifies availability of stock (sale) Enters deal on NDS which is confirmed by counterparty's bank Deal is settled by CCIL by debiting crediting settlement bank account with RBI and delivery of securities.

Documentation

Documents to be obtained
Account opening form Accepted offer letter Board Resolution Copy of PAN card Specimen Signature of authorized signatories Stamped CSGL agreement

The original documents to be submitted to CMOG along with Client set up memo

Activating Relationship

Opening of CSGL Account CMOG vets doc and informs COG SMS
COG SMS opens CSGL a/c and informs no to BM/SM

Precautions The client must have designated operative account (SSA/CA) for settlement Any concessional tariff to be approved by AGM or above Signatories in operative account and CSGL account should be same

Account servicing

A client can have only one CSGL account Account can be transferred from one bank to other Please refer Circular no.8198 for Change of signatories / MOP Transfer of account from other bank MIS Fortnightly in case of transactions Quarterly in case of no transactions Balance confirmation statement are obtained on half yearly basis

Fee Management Services

Product features
Offered to Colleges / Schools / Universities / Management Institutes / Deemed Universities Operative account opened with ICICI Bank branch Specially designed pay slips are used Unique 6 digit alpha code is issued An agreement is entered between Bank and Institute Regular MIS is sent to registered mail ID of institute

Channel for payment

Mode of payment
Deposit of cash in branch along with triplicate challan Deposit of cheque in branch / ATM drop box along with triplicate slip Capture data on web page of client entity and make payment through cash/cheque or through payment gateway

MIS Options

A pop up can be developed in predetermined format in operative account Data is captured at the time of accepting cash or cheque Statement is sent to client entity at EOD through mail Funds can also be collected through office pool account 0036.slfeecol

MIS Pattern for Education Institute

Institute name (6 digit Alpha) Student name (15 digit Alpha) Roll No. (9 numeric) Section / course (4 Alphanumeric) Class / year (6 Alphanumeric)

MIS Pattern for Charitable Trust

Institute name (6 digit Alpha) Name of donor (18 digit Alpha) Pan No. (10 Alphanumeric) Donation type (6 Alphanumeric)

MIS Pattern for Clubs

Institute name (6 digit Alpha) Name of member (16 digit Alpha) Membership No. (9 Alphanumeric) Type of membership (6 Alphanumeric) Month / Year (6 Alphanumeric)

MIS Pattern for Association

Institute name (6 digit Alpha) Name of Member(17 digit Alpha) Membership no. (6 Alphanumeric) Type of Member (6 Alpha) Other details (5 Alphanumeric)

MIS Pattern for Housing Society

Institute name (6 digit Alpha) Flat No. (4 digit Alphanumeric) Wing No. (1 Alphanumeric) Month (2 Alphanumeric) Maintenance (5 Numeric) Property tax (4 Numeric)

TASC Segment
Trusts Societies Associations Clubs Entities with permission under FCRA Defence Other entities

Trusts (Constitution Code R 5)

Charitable and Religious Trusts

Public Trusts, Temples, Churches, Muslim Wakfs, Gurudwara, Mosques, Yoga Ashram

Employee Welfare Trust

Provident Funds, Gratuity Funds, Superannuation Funds, Pension Funds

Educational Trusts

Schools, Colleges, Universities, Boards, Management Institutes

Private Trusts (cannot open SSA, PAN compulsory)

Family Trust

Private Trust

Beneficial interest vested in one or more individual

Governed by Indian Trust Act 1882 No SSA to be offered for Private trust PAN No. Compulsory

Discretionary Trust
Where beneficiaries are not defined If defined, share of income or benefit not defined

Specific Trust Beneficiaries with share of of benefit defined Trustees have no freedom to apply income outside trust objectives

Note : ICICI Bank does not open accounts of discretionary trust

Trust by Will / Minor as beneficiary

Trust with beneficiary as Minor

ID proof of minor to be obtained Date of Birth of Beneficiary Minor to be noted Source of income of trust to be ascertained All documents required for Trust to be obtained

Issue of cheque books and withdrawals can be permitted till Minor attains majority (Ann II cir 7495)

Trust by Will

Trust should be registered Copy of the Probate to be obtained Other documents applicable for Trust

Trust Documentation
Specimen Sign/ Photo /ID For Authorized Signatories only

Copy of PAN or Form No.60 Extract of board resolution

Copy of trust deed Copy of registration certificate Office bearers list with address Proof of tax exemption (for SSA only) Address proof of entity

PAN compulsory for Private Trust Refer Cir 7495

Name to match with AOF Name to match with AOF On letterhead and dated 12 A Certificate/ Copy of Nil returns/ Ann XVII as per Cir. 7495 NOC from office bearer not allowed

KYC Report
Deduping Shareholding Pattern(ann 19 cir 7998)

Annexure X as per cir 7495

Annexure 1 cir 7999 Not needed for Public Trust

PF/GF/SAF - Documentation
Specimen Sign/ Photo /ID For Authorized Signatories only

Copy of PAN or form 60

Extract of board resolution Copy of trust deed IT Recognition Certificate

Name to match AOF

Refer Cir 7495 Name to match AOF Mandatory for SSA, for current account application to IT needed

List of trustees with address

Proof of tax exemption for SSA Address proof of entity Deduping Shareholding Pattern KYC Report

On letterhead and dated

As per eligibility slide NOC from office bearer not allowed Annexure 1 cir 7999 Not needed for Public Trust Annexure X as per cir 7495

Societies (Constitution code R 12)

Constitution Registered under Societies Registration Act 1860 or other state / UT acts Multi State Co-operative Society State Housing Societies Regulations like Apartment Acts Type of societies Marketing Societies (Fruits, Vegetable Vendors, Cotton merchant, Cotton traders, Coconut, Tobacco, Poultry etc.) Primary Agricultural Societies Consumer Cooperatives Electricity Cooperatives Farming, Irrigation Societies

Societies - Documentation
Specimen Sign/ Photo /ID
Copy of PAN or form 60 Extract of board resolution

For Authorized Signatories only

Name should match AOF Refer Circular no. 7495

Copy of MOA/AOA/Bye Laws

Registration Certificate List of trustees with address Proof of tax exemption (For SSA) Address proof of entity KYC Report De-duping Shareholding Pattern

Name should match AOF

Name should match AOF On letterhead and dated Registration certificate as Society NOC from office bearer not allowed Annexure X as per Circular no. 7495 Annexure 1 cir 7999 Not needed for Public Trust

Associations (Constitution Code R 6)

Type of Associations
Sports Associations Merchant Associations Employee Welfare Associations Trade Associations Professional Associations Councils Association of Person (AOP) Chamber of Commerce Federations

The Association should be registered as a Trust, Society or Sec 25 company Documentation as per constitution under which

Clubs (Constitution Code R7)

Type of Clubs
Health Clubs
Bombay Gymkhana US Club MIG Club

Lifestyle Clubs Sports Club Social Activity Clubs

Rotary, Lions, Jaycees

Only non-profitable clubs are allowed to open account.

FCRA (Foreign Contribution Regulation Act)

Act to regulate inflow of foreign donations to

Persons Associations companies

To ensure that usage of foreign donations are not detrimental to national interest Foreign contribution can be received by obtaining
Prior permission (Specified amount from specified source for specified period) Registration (Contribution can come from multiple sources without predefined limits)

Permission is accorded by Ministry of Home Affairs

SSA Account for FCRA

Documentation All the KYC document as applicable to type of entity Annexure V - Customer Information Report Cir No.7495) Annexure VI - Self Declaration from the Applicant of FCRA account (Cir 7495) No AOC should be collected while opening FCRA account Account opened centrally with debit and credit freeze by Mumbai RPC Letter as per Ann VII FCRA Circular 7495 issued for MHA once a/c open Freeze to be removed once permission from Ministry of Home Affairs received for FCRA for the a/c All subsequent modification post this to be done at Local RPC For details on FCRA please refer to Circular 7890

M2O Account for FCRA

Documentation Only M2O (with Zero Balance) and not RCA to be sourced for FCRA Current Account (Through Omnidoc and not Infopool) All the KYC document as applicable to type of entity Annexure V - Customer Information Report (CIR) (Cir 7495) Annexure VI - Self Declaration from the Applicant of FCRA account (Cir 7495) No AOC should be collected while opening FCRA account RCU done at Local RPC & scanned through Omnidoc and not Infopool to Mumbai COPS Letter as per Ann VII FCRA Circular 7495 issued for MHA once a/c open Freeze to be removed once permission from Ministry of Home Affairs received for FCRA for the a/c All subsequent modification post this to be done at Local RPC

Permissible credits
FCRA account Non FCRA account
Foreign contribution/ donation Local funds (including exempt entities as per annexure XIV) Funds from other FCRA Foreign funds if the underlying transaction is commercial, accounts held in India subject to FCRA advisory committee approval Interest earned on FCRA NRI funds (excluding PIO / savings account / fixed OCI) deposits made out of FCRA funds

Non-Permissible Credits
FCRA account Non FCRA account

Local funds

Foreign source funds in the nature of donation

Funds from NRI holding Funds from other FCRA Indian Passport (excluding accounts held in India PIO / OCI) Foreign funds other than donation Interest earned on fixed deposits made out of FCRA funds

Checklist for credits

Source Account type Type of remittance Can we credit

NRI Indian passport NRI Indian passport Foreign

Foreign Foreign

Non FCRA A/c FCRA A/c

Commercial or non commercial Commercial or non commercial Non commercial

Non commercial Commercial

Yes

No
No
Yes (Permission or registration) Yes (Committee approval)

Non FCRA A/c

FCRA A/c Non FCRA a/c

Defence - (Constitution code R 6)

Army, Navy, Air force regimental Funds Canteen Stores Depot and Unit Run Canteens Inter Service Organisations

E.g. Coast Guard / BSF / ITBF / CRPF / CISF E.g. Army Group Insurance, Navy Group Insurance E.g. Army Welfare Housing Organisation

Insurance Funds

Benevolent Funds

Defence Production (Ordinance Factories) Defence Research & Development Organisation Training Institutions

Eg. Sainik Schools, NDA, Army Medical Institutions

Sec. 25 Companies (Constitution code R 6)

Account opening form Series 340 to be used

Specimen Signature/ Photograph / Identity proof Copy of PAN or Form 60

Extract of board resolution Copy of trust deed Copy of registration certificate List of Directors with DOB Proof of tax exemption (only for opening SSA, not for CA) Address proof of entity (Annexure IV Circular 7495) KYC Report

Needed for authorised signatories only Name to match AOF

Refer Cir No.7495 Name to match AOF Name on AOF to match On letterhead and dated Registration certificate (Refer annexure I Cir.No.7495) NOC from Office bearer to use residence address not allowed Annexure X as per Cir.No.7495

Educational Institute run by TASC

KYC Documentation
1.KYC documentation of trust / society /sec 25 co. running Education Institute (EI) 2.Resolution from entity to open account in the name of school etc All documents /AOF/ letterhead should be of entity except for Specimen Signature which would be across rubber stamp of indtitute Permission letter given by Govt. Dept. can be taken as identity proof eg. CBSE, ICSE,AICTE, linking the entity to the educational institute Address proof in the name of school needed if different from entity. Permission letter can also be taken as address proof As per previous slide

Rubber stamp Identity Proof of institute (ref cir 7495) Address Proof of school (Refer to Ann IV Circular7495)

Tax Exemption (for opening SSA)

Clubs (Constitution code R 7)

Documentation

Account opening form (series 340)

Signature with photo for signatories PAN or Form 60 Copy of International / Local charter (if available) Certified copy of Resolution List of office bearers with address, Date of Birth Proof of I T exemption (for SSA) ID proof of authorised signatories Address proof of the club For International clubs, letter of appointment of Dist. Governor / President / Head of the International Club

Specimen

Conference / Trade Show / Seminar

International / Domestic Trade Seminar / Conferences

KYC of entity organizing the even Identity and address proof of the event Purpose of foreign remittances received to be checked
If donation, FCRA permission to be obtained by entity

Conference / Trade Show / Seminar

KYC Documentation KYC documentation of trust / society /sec 25 co. organising the event

Rubber stamp Identity Proof of event (ref cir 7495)

All documents /AOF/ letterhead should be of entity except for Specimen Signature which would be across event rubber stamp Permissions letter given by Govt. Dept. can be taken as identity proof

Address proof in event name needed if Address Proof of different from entity event (Refer to Ann Permission letter from Govt Dept. can also IV Circular7495) be taken as address proof Tax Exemption for SSA As applicable to the type of entity organising the conference

Judicial / Court Order / DRT Accounts

Request letter to open the account / fixed deposit
Copy of court order if applicable Signatures to be obtained on AOF or on letterhead. For deposit through court order, MOP as per court order If the a/c or FD would be operated as per the instruction of the court / DRT etc. the signatures should not be scanned and the mode of operation should be mentioned -- As per Court Order In case of instruction from Court etc. to open SSA, Form 12 A and / or nil returns not needed.

TASC Segment
Channels Products

Channels to be used

Branch Transaction (cash / transfer / clearing) RTGS / NEFT Tax payment Corporate Internet Banking Fund transfer RTGS / NEFT Bill payment ATM drop box (for deposit of cheques) Phone Banking Balance inquiry

Products

Product Suite for TASC ...1 Fee Management Solution Fixed Deposit / Money Multiplier Deposit Operative Account Special Savings Account M2O RCA Doorstep Banking E Collection (RTGS/NEFT) CSGL Demat Trade Finance (LC/BG against 100% margin)

Products

Product Suite for TASC ...2 Sale of Corporate Bonds Loan / Overdraft against Fixed Deposits Tax collection Outstation cheque collection Travel card for employees / directors / members of TASC entity Pay Direct Card for employees / recipients of donations Payment Gateway through IMSCL EDC machines through IMSCL Utility Bill payment

Agenda
TASC Customer profile Documentation Precautions FAQ

Precautions

Appropriate selection of constitution code Peruse the documents prior to submission

Banking clause Applicability of FCRA Eligibility for opening of Special Savings Account Name and property stamp should match If resolution is more than 6 month old, should be stamped true and updated PAN no to be verified on site If registration is part of trust deed, no separate registration certificate required Self drawn cheque not mandatory

Profiling customer

SM to visit the place of customer

To ensure identity of customer To ensure genuineness of the entity To understand financial ability and requirement of the customer

Could help in cross selling other products

SM to chec Internet and search for the client name

To trace any negative historical data of customer

To protect ICICI Bank from allowing access to suspicious entities To help conduct due diligence

SM to monitor actively operated accounts

To ensure higher CASA To ensure profitability of the account

Agenda
TASC Customer - Profile Documentation Precautions FAQ

Frequently Asked Questions1

Q.What is KYC to be done where a person changes his name e.g. Mukund Jani becoming Muktanand Swami ?

The Trust/Association/Society etc must confirm in the Resolution about the name of one or more authorized signatories having undergone a change Change in names has to be supported by sufficient proofs A proof could be paper publication followed by gazette notification

FAQ2
Q Can TASC AOF be rejected because name of the entity is absent in the trust deed? In such cases, copy of the Schedule I duly stamped by Charity Commissioner shall be valid for KYC documentation Q If the word The is used before the name, whether it can be accepted or rejected for not matching of name? The addition/deletion of the word "The" does not amount to change of name. "The" is a generic term, if the same is prefixed / suffixed to the name of the trust it has a nullified effect.

FAQ3
Q The settlor has appointed himself as the sole trustee. Is this acceptable? The author or settlor of a trust may appoint/ constitute himself as the sole trustee or as one of the several trustees.
Q Can a trust deed/ Memorandum/ Rules and Byelaws has not been witnessed, however it has been registered by the Sub Registrar be accepted? Yes it is acceptable. Sub Registrar is deemed to be an attesting witness

FAQ4
Q Where the settlor has appointed the trusteeship company as a trustee to act and manage the trust, can the letterhead etc be of the trustee (Trusteeship Company) be accepted? Yes. If the deed of appointment of the trustee gives power to the trustee (Trusteeship Company) to delegate to any persons / brokers/ sub-brokers etc to its powers and duties (opening of accounts, investments etc) in terms of managing the Trust

FAQ5
Q The trust deed/ bye laws/ MOA are silent on banking matters, what should be done? Specific resolution should be passed allowing entity to bank with ICICI Bank. Q Certain times the trust deed says "TRUST FUNDS
SHALL BE KEPT IN THE NAME OF ALL OR SUCH NUMBER OF TRUSTEES AS MAYBE DECIDED BY THEM."

Can the account be opened in the name of the trust in such case? As per the trust deed the account should be opened in the name of the trustees

FAQ 6
Q Can the authorised person delegate his / her authority to another person? Account operations can be delegated to other office bearers by passing a resolution to the effect, empowering the authorized signatories to delegate the authority to other office bearers The trust deed / bye laws should permit such delegation. If not permitted or not explicitly mentioned by trust deed / byelaws, then account operation can be done by the signatories as empowered by the trust deed/bye laws

Private Trust Public Trust

Please refer to FAQ 15 Circular 7495

Public Trust
For the benefit of general public or a class thereof Governed by the general law particularly laws of state, the provisions of the Indian Trusts Act, 1882 do not apply
Might enjoy tax exemption status Modification or alteration can be made by Charity Commissioner/ Registrar/ Court as the case may be.

Private Trust
For the benefit of specific individuals
Governed by Indian Trusts Act, 1882 Do not get tax exemption status Modification to the trust deed can be done as per the process mentioned in the trust deed.

Thank you