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11. And further contended that in fact, e-KYC is not available with the bank and there is no circular in force which imposes an obligation on the Manager to conduct field inspection of the agricultural land which is mortgaged to PACS before disbursing the amount, which has been sanctioned and granted by the concerned PACS in favour of the members and there is no obligation cast upon the officials of the bank for physical verification of the land which was mortgaged in favour of the respective societies for the loan granted by the PACS and the surcharge proceedings issued against the employees of the bank in pursuant to the report submitted by the inquiry officer under Section 51 of the Act 1964 is without jurisdiction, as per the orders in W.P.Nos.22815, 22828 and 228209 of 2009 of the common High Court and the conjoint reading of relief of Sections 59 and 60 of the Act 1964 makes it clear that the surcharge proceedings cannot be taken against non-employees, non-office bearers or non-members of the society and the action taken against the employees of the bank or held to be without jurisdiction. In order to attract Section 60 of the Act 1964, there must be a loss caused to the bank and the loss caused go the society cannot be a cause of action for proceeding against the employees of the bank.

16. Learned Government Pleader would further submit that Circular No.BKG/KYC/F.No.269/2021-22 dated 03.12.2021 on the KYC Guidelines is issued to protect the financial system against threat of money laundering/terror financing and frauds. Circular instructions in ADM.F.No.1111/2019-20 dated 31.05.2019 point No.8 says that "in case of disbursement of loans to new members, supervisor has to visit the residence of the member and assess his capacity to repay the loan amount, then only he has to recommend for sanction of the loan. Further in case of sanction loan more than Rs.1,00,000/-, the Branch Supervisor, Branch Manager has to conduct field inspection along with the Chief Executive Officer of the Society."

33. It is other contention raised by the learned counsel for the petitioner that e-KYC is not available in the bank.

34. Applicability of KYC is known as:

a) These Directions shall be called the Reserve Bank of India (Know Your Customer (KYC)) Directions, 2016.
b) These directions shall come into effect on the day they are placed on the official website of the Reserve Bank of India.

Section 2: Applicability:

(a) The provisions of these Directions shall apply to every entity regulated by Reserve Bank of India, more specifically as defined in 3 (b)
(i) the aggregate of all credits in a financial year does not exceed rupees one lakh;
ii) xxx
iii) xxx

35. The purpose and purport of KYC stands for "Know Your Customer." It is a due diligence process financial companies use to verify customer identity and assess and monitor customer risk. KYC ensures customers are who they say they are, and it prevents money laundering, terrorism financing, and more fraudulent activities and schemes. By verifying a customer‟s identity and intentions when the account is opened and then monitoring transaction patterns, financial institutions can more accurately pinpoint suspicious activities. As mandated by the Reserve Bank's guidelines, all banks and financial institutions are required to implement Know Your Customer (KYC) procedures. Financial institutions cannot proceed with transactions if KYC documentation is not available.