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Fair Practice Code

  1. Introduction

    M/s Auriolus Finvest Private Limited (“Company”), is a non-deposit taking, Non-Systemically Important, Non-Banking Financial Company registered with RBI.

    This Fair Practices Code (“Code”) has been prepared with the approval of the Board of Directors of the Company taking into account the “Guidelines on Fair Practices Code for NBFCs” pursuant to Master Circular DNBS (PD) CC No.054/ 03.10.119 / 2015-16 dated July 1, 2015 (as may be amended from time to time) issued by the Reserve Bank of India.

    This sets minimum Fair Practice standards for the Company to follow while doing lending business. It provides information to customers and explains how the Company is expected to deal with them on a day to day basis.

    The Company provides unsecured and secured loans to its various customers. Such credit facilities will be extended to different types of customers, which include Individuals, Proprietorships, Partnership Firms, Companies and other Legal entities. This Code is applicable to all categories of products and services offered (currently offered or which may be introduced at a future date) by the Company.

  2. Objectives of the Code
    1. To provide the customers effective overview of practices followed by the Company in respect of financial facilities and services offered by the Company.
    2. To promote good and fair practices by setting minimum standards in dealing with customers.
    3. To increase transparency so that the customers can make an informed decision.
    4. To promote a fair and cordial relationship between the customers and the Company.
  3. Application of the Code

    This code shall apply to all employees, agents, representatives and vendors of the company to represent it in the course of its business with respect to all products and services.

  4. Commitment

    Company shall adhere to this code to act fairly and reasonably in all dealings, on the ethical principle of integrity and transparency, to meet the standard practices prevalent in the finance industry.

  5. Loan Application and Processing
    1. The Company shall convey to its customers, in writing (in a language understood by the customers) of all terms and conditions applicable to a loan application made by the customer that affects the interests of the customer.
    2. The Company will inform the customers about the documents required from them at the time of Loan Application to establish their identity, address, credit assessment and such other information about them as required to comply with legal / regulatory requirements and assessment of the application.
    3. The Company will provide its customers acknowledgment of receipt of loan application forms. Preferably, the time frame within which loan applications will be disposed of will also be indicated in the acknowledgement.
  6. Loan Appraisal and Terms and Conditions
    1. The Company shall convey in writing to the Customer in the vernacular language as understood by the Customer by means of sanction letter or otherwise, the amount of loan sanctioned along with the terms and conditions including annualised rate of interest and method of application thereof and keep the acceptance of these terms and conditions by the Customer on its record.
    2. The Company shall mention the penal interest charged for late repayment in bold in the loan agreement.
    3. The Company shall furnish a copy of the loan agreement as understood by the Customer along with a copy each of all enclosures quoted in the loan agreement to all the borrowers at the time of sanction / disbursement of loans.
  7. Disbursement of Loan and Changes to Terms and Conditions
    1. The Company shall give notice to its customers in vernacular language or a language which is understood by the customers of any change in the terms and conditions including disbursement schedule, interest rates, service charges, prepayment charges etc.
    2. The Company shall ensure that changes in interest rates and charges are effected only prospectively and shall include suitable condition in this regard in the loan agreement.
    3. The Company shall ensure that any decision to accelerate or recall payment or performance by the customers shall be undertaken in a transparent manner according to the terms set out in the loan agreement.
    4. The Company will release all securities on repayment of all dues or on realisation of the outstanding amount of loan subject to any legitimate right or lien for any other claim the Company may have against the customers. If such right of set off is to be exercised, the customers will be given notice about the same with full particulars about the remaining claims and the conditions under which the Company is entitled to retain the securities till the relevant claim is settled / paid.
  8. General
    1. The Company will refrain from interference in the affairs of the customers except for the purposes provided in the terms and conditions of the loan agreement (unless information, not earlier disclosed by the customers, has come to the notice of the Company).
    2. In case of receipt of request from a Customer for transfer of loan account, the consent or otherwise i.e. objection of the Company, will be conveyed within 21 days from the date of receipt of request. Such transfer shall be as per transparent contractual terms in consonance with law.
    3. In the matter of recovery of loans, the Company will not resort to undue harassment such as persistently bothering the customers at odd hours, use of muscle power for recovery of loans, etc. To avoid rude behaviour from the staff of the Company, the Company will ensure that the staff are adequately trained to deal with the customers in an appropriate manner.
    4. The company shall not charge foreclosure charges / pre-payment penalties on all floating rate term loans sanctioned to individual borrowers.
  9. Rate of Interest
    1. The Company has laid down appropriate internal principles and procedures in determining interest rates and processing and other charges.
    2. The Company has adopted an interest rate model taking into account relevant factors such as its cost of funds, margin and risk premium and this is used to determine the rate of interest to be charged for loans and advances from a customer. The maximum rate of interest shall be disclosed to the customers in the application form and the applicable rate of interest shall be communicated to the customers explicitly in the sanction letter.
    3. The maximum rate of interest shall also be made available on the web-site of the Company or published in the relevant newspapers. The information published in the website or otherwise published shall be updated by the Company whenever there is a change in the rates of interest.
    4. The rate of interest will be annualised rate so that the customer is aware of the exact rates that would be charged to the account.
    5. The Company shall, at the time of disbursal, ensure that the interest rate and other charges, if any, on loan and advances are in strict adherence to above referred internal principles and procedures.
  10. Non-Discrimination

    The Company will not discriminate its customers on the basis of their gender, race or religion. The Company’s policy is to treat all the customers fairly. The company will offer assistance, information and services in a fair, equitable and consistent manner.

  11. Collection of Dues
    1. Whenever loans are given, the Company shall explain to the customer the repayment process by way of amount, tenure and periodicity of repayment.
    2. If the customer does not repay in accordance with the agreed repayment schedule, the Company will undertake necessary steps for recovery of dues in accordance with applicable law and terms of loan agreement as executed with such customer. The process may involve reminding the customer by sending a notice or by making personal visits.
    3. Company shall provide customers with all the information regarding dues and shall endeavour to give sufficient notice for payment of dues.
    4. All assistance shall be given to resolve disputes or differences regarding dues in a mutually acceptable and in an orderly manner.
    5. During visits to customer’s place for dues collection, decency and decorum shall be maintained.
    6. In the matter of recovery of loans, the Company would not resort to undue harassment or use of force.
    7. Company staff or any person authorized shall identify themselves through ID card or by any other medium while representing the company for collection of dues or / and security repossession.
  12. Repossession of hypothecated assets
    1. The Company has a built in re-possession clause in the loan agreement with the customer which is legally enforceable. To ensure transparency, the terms and conditions of the loan agreement contains provisions regarding:

      1. a) notice period before taking possession
      2. b) circumstances under which the notice period can be waived
      3. c) the procedure for taking possession of the security
      4. d) a provision regarding final chance to be given to the customer for repayment of loan before the sale / auction of the assets
      5. e) the procedure for giving repossession to the customer
      6. f) the procedure for sale / auction of the assets
    2. A copy of the terms and conditions would be made available to the customers. The company shall provide a copy of the loan agreement along with a copy each of all enclosures quoted in the loan agreement to the customers at the time of sanction / disbursement.
  13. Grievance Redressal Mechanism
    1. Applicant/Customers who wish to provide feedback or send in their complaint/grievance may use any of the following mediums between 9:30 AM and 5:30 PM from Monday to Friday except on public holidays.
      1. a) Call our Customer Service Helpline on 0124-4412620 / 9958871847
      2. b) Email us at contactus@bizfunds.com
      3. c) Write to us at the below mentioned address:
        Plot No. 88, Udyog Vihar, Phase 4, Gurgaon, Haryana - 122015
    2. In case the complaint/grievance addressed to the Customer Service is not taken up or resolved within 15 days or if the customer is not satisfied with the response received from Customer Service, the applicant/customer may approach the Grievance Redressal Officer of the Company.

      The Company shall display the following information prominently for the benefit of their applicants/customers, at its branches/places where business is transacted.

      Contact details of the Grievance Redressal Officer, who can be approached by the applicant/customer for resolution of the complaint/grievance against the Company are as under:

      Grievance Redressal Officer
      Auriolus Finvest Pvt. Ltd.
      Plot No 88, Udyog Vihar, Phase IV,Gurugram, Haryana – 122015
      Phone No: 0124-4412620 / 9958871847
      Email Id: grievanceredressal@bizfunds.com
    3. If the complaint/dispute is not redressed within a period of one month, the customer may appeal to Officer-in-Charge of the Regional Office of Department of Non-Banking Supervision of RBI at New Delhi.

      The details of DNBS regional office are given below:

      The General Manager,
      Department of Non-Banking Supervision,
      Reserve Bank of India,
      6, Parliament Street,
      New Delhi - 110001
      Ph. 011-23714456
      E-mail: dnbsnewdelhi@rbi.org.in
  14. Confidentiality

    The Company shall collect personal information that it believes to be relevant and required for conduct of its business. The Company shall treat all personal information of customers as private and confidential and shall not divulge any information to a third person unless required by any law or Government authorities including Regulators or Credit agencies or where the sharing of information is permitted by the customer. If Company avails services of any third party for providing support services, Company shall require that such third parties to handle customers’ personal information with the same degree of confidentiality as adopted by the Company itself.

  15. Advertising, Marketing and Sales

    The Company shall ensure that all advertising and promotional material is clear and not misleading. Should the customers consent to receive, the Company may, from time to time, communicate to customers various features of the Company’s products that are availed by them. Information about their other products or promotional offers in respect of products / services may be conveyed to customers, should the customers consent to receive them. In the event of receipt of any complaint from the customer that representative of the company has engaged in any improper conduct or acted in violation of this Code, appropriate steps shall be initiated to investigate and address the complaint.

  16. Review

    The Board of Directors of the Company shall provide for periodic review of the compliance of the Fair Practices Code and the functioning of the grievance redressal mechanism at various levels of management. A consolidated report of such reviews shall be submitted to the Board at regular intervals.

  17. Publication

    The latest Code shall be displayed at all our branches / offices and published on the web-site of the Company for the information of various stakeholders.


Know your Customer (KYC) Guidelines

Reserve Bank of India (RBI) has issued Master Direction – Know Your Customer (KYC) Direction, 2016 vide its Master Direction DBR.AML.BC.No.81/14.01.001/2015-16 dated February 25, 2016 (as amended from time to time) to prescribe certain customer identification procedures while undertaking a transaction either by establishing an account-based relationship or otherwise and to monitor their transactions. The said Directions are applicable to every entity regulated by RBI including Non-Banking Financial Companies (NBFCs).

Auriolus Finvest Private Limited (hereinafter referred to as “Company”) has prepared this Know Your Customer (KYC) Policy (hereinafter referred to as the “Policy”) in adherence to all applicable Directions issued by RBI from time to time and shall make appropriate modifications to this policy, if necessary, to conform to the standards so prescribed.

  1. Objective
    The primary objective of this Policy is to lay down explicit criteria for acceptance of customers, to establish procedures to verify the identity of customers and/or their authorised representatives for opening of loan account, to develop measures for conducting due diligence in respect of customers, to establish processes and procedures for regular monitoring of transactions particularly transactions of high value and/or transactions of suspicious nature and reporting of such transactions, if required and to prevent the Company from being used, intentionally or unintentionally, by criminal elements for money laundering or terrorist financing activities.

    KYC procedures also enable the Company to know / understand its customers and their financial dealings in a better way which in turn help it manage its risks prudently.
  2. Applicability
    This policy is applicable across all branches / business segments of the Company and its subsidiaries, located in India or abroad, and are to be read in conjunction with related operational guidelines issued from time to time.

    The Company is committed for transparency and fairness in dealing with all stakeholders and in ensuring adherence to all laws and regulations. The Company ensures that the information collected from the customer for any purpose shall be treated as confidential and details thereof shall not be divulged for the purpose of cross selling, or for any other purpose without the express permission of the customer. The Company commits that information sought from the customer is relevant to the perceived risk, is not intrusive, and is in conformity with the guidelines issued in this regard. Any other information from the customer shall be sought separately with his/her consent.
  3. Nominations and Appointments
    The Board of Directors of the Company / any Committee of the Board are responsible for approving and implementing this Policy hereinafter detailed and to nominate officials of the Company as follows:

    1. Designated Director: The Board of Directors of the Company shall nominate a Designated Director to ensure overall compliance with the obligations imposed under Chapter IV of the Prevention of Money Laundering (PML) Act and the Rules made thereunder. The name, designation and address of the Designated Director shall be communicated to the Financial Intelligence Unit – India (FIU-IND). In no case, the Principal Officer of the Company shall be nominated as the 'Designated Director'.
    2. Principal Officer: The Board of Directors or the Designated Director of the Company shall appoint a Principal Officer who shall be responsible for ensuring compliance, monitoring transactions, and sharing and reporting information as required under the law / regulations. The name, designation and address of the Principal Officer shall be communicated to the FIU-IND.
  4. Compliance of the Policy
    The Company shall ensure compliance of this Policy by / through:

    1. Its Senior Management which includes Board of Directors, Chief Executive Officer (CEO) and Head – Credit & Risk.
    2. Allocating the responsibility for effective implementation of the Policy and its procedures.
    3. An independent evaluation of the compliance functions of the Policy and procedures, including legal and regulatory requirements.
    4. Concurrent / Internal Audit/ External Audit system to verify the compliance with Policy and procedures. Audit Report shall be submitted quarterly along with audit notes and compliance of this Policy to the Board of Directors / Audit Committee of the Company.

    The Company shall ensure that decision-making functions of determining compliance with KYC norms are not outsourced.
  5. Scope
    The contents of this Policy shall always be read in conjunction / auto-corrected with the changes / modifications which shall be advised by RBI / other Authority from time to time. The Company may also formulate Standard Operating Procedures (SOPs) in addition to operational guidelines issued by RBI from time to time.

    The Company hereunder is framing the Policy incorporating the following key elements:

    (i) Customer Acceptance Policy (CAP);

    (ii) Customer Identification Procedures (CIP);

    (iii) Customer Due Diligence (CDD);

    (iv) Risk Management;

    (v) Monitoring of Transactions and Reporting to Financial Intelligence Unit (FIU-IND) – On-going Due Diligence

    (vi) Record Management

    1. Customer Acceptance Policy (CAP)
      The Company shall ensure that:

      1. a) No loan account is opened in anonymous or fictitious / benami name(s).
      2. b) No loan account is opened where the Company is unable to apply appropriate CDD measures, either due to non-cooperation of the customer or non-reliability of the documents / information furnished by the customer.
      3. c) No transaction or account-based relationship is undertaken without following the CDD procedure.
      4. d) The mandatory information to be sought for KYC purpose while opening a loan account and during the periodic updation, is specified.
      5. e) ‘Optional’ / additional information is obtained with the explicit consent of the customer after the loan account is opened.
      6. f) It applies the CDD procedure at Unique Customer Identification Code (UCIC) level. Thus, if an existing KYC compliant customer of the Company desires to open another account, there shall be no need for a fresh CDD exercise.
      7. g) CDD Procedure is followed for all the co-applicants / joint account holders, while opening a joint loan account.
      8. h) Circumstances in which, a customer is permitted to act on behalf of another person/entity, is clearly spelt out.
      9. i) Suitable system is put in place to ensure that the identity of the customer does not match with any person or entity, whose name appears in the Sanctions Lists circulated by Reserve Bank of India.

      Standard Operating Procedures (SOPs) for Customer Acceptance Policy (CAP), Customer Identification Procedure (CIP) and Customer Due Diligence (CDD) are outlined in Annexure I to the Policy.
    2. Customer Identification Procedure (CIP)
      The Company shall undertake identification of customers in the following cases:

      1. a) Upon commencement of an account-based relationship with the customer;
      2. b) When there is a doubt about the authenticity or adequacy of the obtained customer identification data;
      3. c) When the Company has reason to believe that a customer is intentionally structuring a transaction into a series of transactions below the threshold of Rupees Fifty Thousand.

      The Company shall ensure that there is no introduction being sought for the purposes of opening loan account(s).

      Standard Operating Procedures (SOPs) for Customer Acceptance Policy (CAP), Customer Identification Procedure (CIP) and Customer Due Diligence (CDD) are outlined in Annexure I to the Policy.
    3. Customer Due Diligence (CDD)
      The Company shall ensure appropriate CDD measures are applied at the time of commencement of account-based relationship with the customer and also ensure to apply measures to have on-going CDD based on the risk profile of every customer.

      For the Customer Due Diligence (CDD) done by a third party, the Company shall ensure that:

      1. a) Records or information of such customers’ due diligence carried out by the third party is obtained within two days from the third party or from the Central KYC Records Registry.
      2. b) Copies of identification data and other relevant documentations relating to the customer due diligence requirements are made available from the third party upon request without delay.
      3. c) The third party is regulated, supervised or monitored for, and has measures in place for, compliance with the requirements and obligations under the PML Act for CDD and record-keeping requirements.
      4. d) The third party is not based in a country or jurisdiction assessed as high risk.
      5. e) The ultimate responsibility for CDD and undertaking enhanced due diligence measures, as applicable, shall be with the Company.

      Standard Operating Procedures (SOPs) for Customer Acceptance Policy (CAP), Customer Identification Procedure (CIP) and Customer Due Diligence (CDD) are outlined in Annexure I to the Policy.
    4. Risk Management
      The Company shall have a risk based approach which includes the following:

      1. a) Customers shall be categorised as Low (Green Score), Medium (Yellow Score) and High (Red Score) risk category, based on the assessment and risk perception of the Company as per Credit Monitoring Policy of Company including parameters such as customer’s identity, social / financial status, nature of business activity, and information about the clients’ business and their location etc.
      2. b) While considering customer’s identity, the ability to confirm identity documents through online or other services offered by issuing authorities may also be factored in.
      3. c) The various other information collected from different categories of customers, for the purposes of risk management, is non-intrusive and the same shall be duly specified in the Policy / Credit Monitoring and Recovery Mechanism.
      4. d) Financial Action Task Force (FATF) Public Statement, the reports and guidance notes on KYC/AML issued by the Indian Banks Association (IBA), guidance note circulated to all cooperative banks by the RBI etc., may also be used in risk assessment.
      Periodic Updation
      The Company shall carry out periodic updation of KYC records at least once in every two years for high risk customers, once in every eight years for medium risk customers and once in every ten years for low risk customers as per following procedure:

      1. a) The Company shall carry out CDD as per Para 5.3 of the Policy, at the time of periodic updation. However, in case of low-risk customers, when there is no change in status with respect to their identities and addresses, a self-certification to that effect shall be obtained.
      2. b) In case of Legal Entities, the Company shall review the documents sought at the time of opening of loan account and obtain fresh certified copies.
      3. c) Physical presence of customers at the time of periodic updation shall not be insisted upon unless there are sufficient reasons that physical presence of the account holder(s) is required to establish their bona-fides. Normally, a certified copy of the OVD / consent for Aadhaar authentication/Offline Verification forwarded by the customer through mail/post etc. shall be acceptable.
      4. d) The Company shall ensure to provide acknowledgement with date of having performed KYC updation.
      5. e) The time limits prescribed above would apply from the date of opening of the loan account / last verification of KYC.
    5. Monitoring of Transactions and Reporting to Financial Intelligence Unit (FIU-IND) – On-going Due Diligence
      5.5.1. Monitoring
      The Company shall undertake on-going due diligence of customers to ensure that their transactions are consistent with their knowledge about the customers, customers’ business and risk profile; and the source of funds, as per “Credit Monitoring and Recovery Mechanism” formulated by the Company and ensure that:

      1. a) The extent of monitoring shall be assigned with the risk category of the customer.
      2. b) High risk accounts shall be subject to intensified monitoring.
      3. c) A periodic review of risk categorisation of loan accounts shall be done at least once in every six months.
      4. d) A system for applying the enhanced due diligence measures shall also be put in place.
      5. e) The transactions in accounts of marketing firms, especially accounts of Multi-level Marketing (MLM) Companies shall be closely monitored.

      Without prejudice to the generality of factors that call for close monitoring, following types of transactions shall necessarily be monitored:

      1. a) Large and complex transactions including RTGS transactions, and those with unusual patterns, inconsistent with the normal and expected activity of the customer, which have no apparent economic rationale or legitimate purpose.
      2. b) Transactions which exceed the thresholds prescribed for specific categories of accounts.
      3. c) Deposit of third party cheques, drafts, etc. in the existing and newly opened accounts followed by cash withdrawals for large amounts.

      5.5.2. Reporting
      1. i) The Company shall submit the following reports to the Director, FIU-IND by 15th day of the succeeding month:

        a) Cash Transaction Report (CTR) of all cash transactions of the value of more than ten lakh rupees or its equivalent in foreign currency.
        All series of cash transactions integrally connected to each other which have been valued below rupees ten lakhs or its equivalent in foreign currency where such series of transactions have taken place within a month and the monthly aggregate exceeds an amount of 10 lakh rupees or its equivalent in foreign currency shall also be reported.

        b) Counterfeit Currency Reports (CCR) of all cash transactions where forged or counterfeit currency notes or bank notes have been used as genuine or where any forgery of a valuable security or a document has taken place facilitating the transactions.

        c) Cross Border Wire Transfer Report (CBWTR) of the value of more than five lakh rupees or its equivalent in foreign currency where either the origin or destination of fund is in India.

      2. ii) The Company shall submit the Immovable Property Report (IPR) of all purchase and sale by any person of immovable property valued at fifty lakh rupees or more that is registered by the Company, as the case may be, to the Director, FIU-IND by 15th day of the month succeeding the quarter.
      3. iii) The Company shall also submit the Suspicious Transaction Report (STR) of all suspicious transactions whether or not made in cash to the Director, FIU-IND within 7 days on being satisfied that the transaction is suspicious.

        “Suspicious Transaction” means a ‘transaction’ as defined below, including an attempted transaction, whether or not made in cash, which, to a person acting in good faith:

        a) Gives rise to a reasonable ground of suspicion that it may involve proceeds of an offence specified in the Schedule to the PML Act, regardless of the value involved; or

        b) Appears to be made in circumstances of unusual or unjustified complexity; or

        c) Appears to not have economic rationale or bona-fide purpose; or

        d) Gives rise to a reasonable ground of suspicion that it may involve financing of the activities related to terrorism. Explanation: Transaction involving financing of the activities relating to terrorism includes transaction involving funds suspected to be linked or related to, or to be used for terrorism, terrorist acts or by a terrorist, terrorist organization or those who finance or are attempting to finance terrorism.

        Broad categories of reason for suspicion and examples of suspicious transactions are indicated as under:

        Identity of client
        a) False identification documents

        b) Identification documents which could not be verified within reasonable time

        c) Accounts opened with names very close to other established business entities

        Background of client
        a) Suspicious background or links with known criminals

        Multiple accounts
        a) Large number of accounts having a common account holder, introducer or authorized signatory with no rationale

        b) Unexplained transfers between multiple accounts with no rationale

        Activity in accounts
        a) Unusual activity compared with past transactions

        b) Sudden activity in dormant accounts

        c) Activity inconsistent with what would be expected from declared business

        Nature of transactions
        a) Unusual or unjustified complexity

        b) No economic rationale or bonafide purpose

        c) Frequent purchases of drafts or other negotiable instruments with cash

        d) Nature of transactions inconsistent with what would be expected from declared business

        Value of transactions
        a) Value just under the reporting threshold amount in an apparent attempt to avoid reporting

        b) Value inconsistent with the client’s apparent financial standing

        5.5.3. Manner of Reporting
        i) The Company shall follow the electronic reporting formats and comprehensive reporting format guide as prescribed by FIU-IND on its official website.

        ii) The Company shall put in place the robust software, which throw alerts when the transactions are inconsistent with the risk categorization and updated profile of the customers as a part of effective identification and reporting of suspicious transactions.

        iii) The Principal Officer of the Company shall furnish timely Reports/information referred above on the basis of information available with the Company. Delay of each day in not reporting a transaction or delay of each day in rectifying a mis-represented transaction beyond the specified time limit shall be constituted as a separate violation.

        iv) It shall be the duty of the Company, Designated Director, Officers and employees to observe the procedure and the manner of furnishing specified information.

        v) The Company shall maintain utmost confidentiality in filing of CTR and STR and its transmission.

        vi) Company shall not put any restriction on operation of the accounts where an STR has been filed. Further, it shall be ensured that there is no tipping off to the customer at any level.

    6. Record Management
      5.6.1. The Company shall maintain all necessary information in respect of the transactions for which Reports/information referred above submitted/to be submitted to FIU-IND so as to permit reconstruction of individual transaction, including the following:

      a) The nature of the transaction(s);
      b) The amount and the currency of the transaction(s);
      c) The date of the transaction(s); and
      d) The parties to the transaction(s).

      5.6.2. The Company shall maintain all necessary records of transactions between itself and the customer for a period of at least FIVE years from the date of the transaction.

      5.6.3. The Company shall preserve the identification and address records of the customers, for a period of at least FIVE years after the business relationship is ended.

      5.6.4. The Company shall introduce a robust system of maintaining the proper records of transactions prescribed under Rule 3 of Prevention of Money Laundering (Maintenance of Records) Rules, 2005.

      5.6.5. The Company shall maintain such records of the identity and address of its customer and records in respect of transactions referred above submitted/to be submitted to FIU-IND in hard or soft format and in a manner that allows data to be retrieved easily and quickly whenever required or when requested by the competent authorities.

      5.6.6. The Company shall make available the identification records and transaction data to the competent Authorities, upon request.

  6. Requirements/Obligations under International Agreements – Communications from International Agencies
    1. The Company shall ensure that in terms of Section 51A of the Unlawful Activities (Prevention) (UAPA) Act, 1967, it does not have any loan account in the name of individuals/entities appearing in the lists of individuals and entities, suspected of having terrorist links, which are approved by and periodically circulated by the United Nations Security Council (UNSC).
    2. The Company shall screen its customers against the following two lists:

      1. a) ISIL (Da’esh) & Al-Qaida Sanctions List: This list includes names of individuals and entities associated with the Al-Qaida.
      2. b) 1988 Sanctions List: This list includes individuals (Section A of the consolidated list) and entities (Section B) associated with Taliban.
    3. The Company shall report details of loan accounts resembling any of the individuals/entities in the lists, to FIU-IND apart from advising Ministry of Home Affairs as required under UAPA notification dated March 14, 2019.
    4. In addition to the above, the Company shall take note of other UNSCRs circulated by RBI in respect of any other jurisdictions/entities from time to time.
    5. Freezing of Assets: The Company shall ensure compliance with the procedure laid down for freezing of assets under Section 51A of Unlawful Activities (Prevention) Act, 1967.
    6. Jurisdictions that do not or insufficiently apply the FATF Recommendations

      1. a) The Company shall consider FATF Statements circulated by RBI from time to time, and publicly available information, for identifying countries, which do not or insufficiently apply the FATF Recommendations. The Company shall also take into account the risks arising from the deficiencies in AML/CFT regime of the jurisdictions included in the FATF Statement.
      2. b) The Company shall give special attention to business relationships and transactions with persons (including legal persons and other financial institutions) from or in countries that do not or insufficiently apply the FATF Recommendations and jurisdictions included in FATF Statements.

        Explanation: The process referred to in a) & b) above do not preclude the Company from having legitimate trade and business transactions with the countries and jurisdictions mentioned in the FATF statement.
      3. c) The Company shall examine the background and purpose of transactions with persons (including legal persons and other financial institutions) from jurisdictions included in FATF Statements and countries that do not or insufficiently apply the FATF Recommendations, and shall retain written findings together with all documents and shall made available to RBI/other relevant authorities such findings/documents, on request.
  7. Secrecy Obligations and Sharing of Information
    The Company shall maintain secrecy regarding the customer information which arises out of the contractual relationship between the Company and the customer.

    The Company shall satisfy itself, in case there is a request for data/information from Government and other Agencies, that the data/ information being sought is not of such a nature which will violate the provisions of the laws relating to secrecy in the transactions.

    The exceptions to the above rule shall be as under:

    (i) Where disclosure is under compulsion of law
    (ii) Where there is a duty to the public to disclose
    (iii) The interest of the Company requires disclosure
    (iv) Where the disclosure is made with the express or implied consent of the customer.

    The Company shall maintain confidentiality of information as provided in Section 45NB of RBI Act, 1934.
  8. Introduction of New Technologies - Credit Cards / Debit Cards / Smart Cards / Gift Cards / Mobile Wallet / Net Banking / Mobile Banking / RTGS / NEFT / ECS / IMPS etc.

    The Company shall pay adequate attention to any money-laundering and financing of terrorism threats that may arise from new or developing technologies and it shall be ensured that appropriate KYC procedures issued from time to time are duly applied before introducing new products/services/technologies.
  9. Wire transfer
    The Company shall ensure the following while effecting wire transfer:

    a) All cross-border wire transfers including transactions using credit or debit card shall be accompanied by accurate and meaningful originator information such as name, address and account number or a unique reference number, as prevalent in the country concerned in the absence of account.
    Exception: Interbank transfers and settlements where both the originator and beneficiary are banks or financial institutions shall be exempt from the above requirements.

    b) Domestic wire transfers of Rupees Fifty Thousand and above shall be accompanied by originator information such as name, address and account number.

    c) Customer Identification shall be made if a customer is intentionally structuring wire transfer below Rupees Fifty Thousand to avoid reporting or monitoring. In case of non-cooperation from the customer, efforts shall be made to establish his identity and STR shall be made to FIU-IND.

    d) Complete originator information relating to qualifying wire transfers shall be preserved at least for a period of five years by the ordering bank.

    e) All the information on the originator of wire transfers shall be immediately made available to appropriate law enforcement and/or prosecutorial authorities on receiving such requests.
  10. Recruitment and Training of Employees
    The Company shall put in place adequate screening mechanism as an integral part of their personnel recruitment/hiring process.

    The Company shall conduct on-going employee training programme to ensure adequate training in AML/CFT Policy.

    The Company shall design different sets of trainings for frontline staff, compliance staff and staff dealing with new customers. The front desk staff shall be specially trained to handle issues arising from lack of customer education.

    The Company shall ensure proper staffing of the Audit function with persons adequately trained and well-versed in AML/CFT Policies of the Company, regulation and related issues.
  11. Adherence to Know Your Customer (KYC) guidelines by the Company and Persons Authorised by the Company including Brokers/Agents etc.
    The Company shall ensure that the persons authorised by the Company including brokers/agents etc. are fully compliant with the applicable KYC guidelines.

    The Company shall make available all information to the RBI to verify the compliance with the KYC guidelines.

    The Company shall accept full consequences for any violations of the KYC guidelines, by the persons authorised by the Company including brokers/ agents, etc. who are operating on its behalf.

    The Company shall make available the books of accounts of persons authorised by the Company including brokers/agents or the like, so far as they relate to brokerage functions of the Company, for audit and inspection whenever required.

Standard Operating Procedures (SOPs)
Customer Acceptance Policy (CAP), Customer Identification Procedure (CIP) and Customer Due Diligence (CDD)

  • I . Documents to be obtained
    Individuals Sole Proprietary Firms Companies Partnership Firms Trusts Unincorporated Associations/ Body of Individuals* Other Juridical Persons**
    A certified copy of an OVD containing details of his identity and address.

    ALONGWITH:
    • One recent photograph
    • Permanent Account Number (PAN) or Form No. 60 as defined in Income-Tax Rules, 1962, and
    • Other documents pertaining to the nature of business or financial status specified by the Company in Application Form / Loan Agreement.
    A certified copy of an OVD for establishing the identity and address of the individual proprietor.

    AND, any TWO of the following:
    • Registration Certificate
    • Certificate/ License issued by the municipal authorities under Shop and Establishment Act.
    • Sales and income tax returns.
    • CST/VAT/GST Certificate (Provisional/Final)
    • Certificate/ registration document issued by Sales Tax/ Service Tax/ Professional Tax authorities.
    • IEC (Importer Exporter Code) issued to the proprietary concern by the office of DGFT/ License/ Certificate of practice issued in the name of the proprietary concern by any professional body incorporated under a statute.
    • Complete Income Tax Return (not just the acknowledgement) in the name of the sole proprietor, reflecting the firms’ income duly authenticated/ acknowledged by the Income Tax Authorities.
    • Utility bills such as electricity, water, telephone bills, etc.
    In case the Company is satisfied that it is not possible to furnish two such documents, the Company may, at its discretion, accept only one of those documents as proof of business/activity.
    Provided the Company undertake contact point verification and collect such other information and clarification as would be required to establish the existence of such firm, and shall confirm and satisfy itself that the business activity has been verified from the address of the proprietary concern.
    One certified copy of each of the following:
    • Certificate of Incorporation (COI)
    • Memorandum and Articles of Association (MOA & AOA)
    • Permanent Account Number (PAN) of the Company
    • A resolution from the Board of Directors and power of attorney granted to its managers, officers or employees to transact on its behalf.
    • Following documents of managers, officers or employees, as the case may be, holding an attorney to transact on company’s behalf:
      - Certified copy of any OVD
      - One recent photograph
      - Permanent Account Number (PAN) or Form No. 60 as defined in Income-Tax Rules, 1962
    One certified copy of each of the following:

    • Registration Certificate
    • Partnership Deed
    • Permanent Account Number (PAN) of the Partnership Firm
    • Power of Attorney (POA/GPA) or Letter of Authority (LOA) in favour of any person, if the name of Managing Partner is not mentioned in the Partnership Deed.
    • Following documents of the person, holding an attorney to transact on firm’s behalf:
      - Certified copy of any OVD
      - One recent photograph
      - Permanent Account Number (PAN) or Form No. 60 as defined in Income-Tax Rules, 1962
    One certified copy of each of the following:

    • Registration Certificate
    • Trust Deed
    • Permanent Account Number (PAN) of the trust
    • Power of Attorney (POA/GPA) or Letter of Authority (LOA) in favour of any person, if the name of Managing Person is not mentioned in the Trust Deed.
    • Following documents of the person, holding an attorney to transact on trust’s behalf:
      - Certified copy of any OVD
      - One recent photograph
      - Permanent Account Number (PAN) or Form No. 60 as defined in Income-Tax Rules, 1962
    One certified copy of each of the following:

    • Resolution of the managing body of such Association of Person (AOP) or Body of Individuals (BOI).
    • Permanent Account Number (PAN) of AOP or BOI
    • Power of attorney granted to transact on its behalf.
    • Following documents of the person, holding an attorney to transact on behalf of AOP or BOI:
      - Certified copy of any OVD
      - One recent photograph
      - Permanent Account Number (PAN) or Form No. 60 as defined in Income-Tax Rules, 1962
    • Any other information/ documents, as may be required by the Company to establish the legal existence of such an association or body of individuals.
    One certified copy of each of the following:

    • Document showing name of the person authorised to act on behalf of the entity.
    • OVD for the person holding power of attorney to transact on its behalf.
    • Following documents of the person, holding an attorney to transact on its behalf:
      - Certified copy of any OVD
      - One recent photograph
      - Permanent Account Number (PAN) or Form No. 60 as defined in Income-Tax Rules, 1962
    • Any other information/ documents, as may be required by the Company to establish the legal existence of such an entity/ juridical person.
    * Unregistered Trust / Partnership Firm shall be included under the term ‘Unincorporated Association’.

    ** Other Juridical Persons may include Societies, Universities and Local Bodies like Village Panchayats, etc. not specifically covered in the earlier part.

  • II. Identification of Beneficial Owner
    For opening a loan account of a Legal Person who is not a natural person, the Company shall identify the beneficial owner(s) and also take all reasonable steps in term of Rule 9(3) of Prevention of Money Laundering (Maintenance of Records) Rules, 2005, to verify his/her identity keeping in view the following:

    (a) Where the customer or the owner of the controlling interest is a company listed on a stock exchange, or is a subsidiary of such a company, it is not necessary to identify and verify the identity of any shareholder or beneficial owner of such companies.
    (b) In cases of trust/nominee or fiduciary accounts whether the customer is acting on behalf of another person as trustee/nominee or any other intermediary is determined. In such cases, satisfactory evidence of the identity of the intermediaries and of the persons on whose behalf they are acting, as also details of the nature of the trust or other arrangements in place shall be obtained.

  • III. Enhanced Due Diligence (EDD) Measures
    Non-Face-to-Face Customers
    In addition to the regular CDD measures, the Company shall ensure that the first payment is to be effected through the customer's KYC-complied account with another Regulated Entity (RE), for enhanced due diligence of non-face to face customers.


    Politically Exposed Persons (PEPs)
    The Company shall have the option of establishing a relationship with PEPs provided that:
    1. The Company shall gather sufficient information including information about the sources of funds, accounts of family members and close relatives.
    2. The Company shall verify the identity of the person before accepting the PEP as a customer.
    3. Senior Management of the Company shall take a decision to open an account for a PEP, in accordance with its Customer Acceptance Policy.
    4. All PEP accounts shall be subjected to enhanced monitoring on an on-going basis.
    5. In the event of an existing customer or the beneficial owner of an existing account subsequently becoming a PEP, Senior Management’s approval shall be obtained to continue the business relationship.
    6. The Company shall apply CDD measures to PEPs including enhanced monitoring on an on-going basis.

    All of the above guidelines shall be applied to the accounts where PEP is the beneficial owner.


  • IV. Unique Customer Identification Code (UCIC)
    The Company shall allot a UCIC while entering into new relationships with individual customers as well as the existing customers.

    The Company shall, at its option, not issue UCIC to all walk-in/occasional customers such as buyers of pre-paid instruments/purchasers of third party products provided it is ensured that there is adequate mechanism to identify such walk-in customers who have frequent transactions with it and ensure that they are allotted UCIC.

  • V. Sharing KYC Information with Central KYC Records Registry (CKYCR)
    The Company shall capture the KYC information for sharing with the CKYCR in the manner mentioned in the Prevention of Money Laundering (Maintenance of Records) Rules, 2005, as required by the KYC templates prepared for ‘Individuals’ and ‘Legal Entities’ as the case may be.

    The Company shall follow the Operational Guidelines for uploading the KYC data released by Central Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI).

  • VI. List of the Officially Valid Documents (OVDs)
    1. Passport
    2. Driving License
    3. Proof of Possession of Aadhaar Number
    4. Voter’s Identity Card issued by the Election Commission of India
    5. Job-Card issued by NREGA duly signed by an officer of the State Government
    6. Letter issued by National Population Register containing details of name and address

  • VII. General Guidelines
    1. “Certified Copy of OVD” shall mean comparing the copy of Officially Valid Document (OVD) so produced by the customer with the original and recording the same on the copy by the authorised officer of the Company.
    2. Where the customer submits his proof of possession of Aadhaar Number as an OVD, he may submit it in such form as are issued by the Unique Identification Authority of India.
    3. The Company shall, where its customer submits his Aadhaar Number, ensure such customer to redact or blackout his Aadhaar Number through appropriate means where the authentication of Aadhaar Number is not required under section 7 of the Aadhaar (Targeted Delivery of Financial and Other Subsidies Benefits and Services) Act.
    4. The Company shall use Aadhaar, proof of possession of Aadhaar etc., in accordance with the Aadhaar (Targeted Delivery of Financial and Other Subsidies Benefits and Services) Act, the Aadhaar and Other Law (Amendment) Ordinance, 2019 and the regulations made thereunder.
    5. The Company may carry out offline verification of a customer if he is desirous of undergoing Aadhaar offline verification for identification purpose.
    6. Where the OVD furnished by the customer does not have updated address, the following documents shall be deemed to be OVDs for the limited purpose of proof of address:

    i) utility bill which is not more than two months old of any service provider (electricity, telephone, post-paid mobile phone, piped gas, water bill);
    ii) property or Municipal tax receipt;
    iii) pension or family pension payment orders (PPOs) issued to retired employees by Government Departments or Public Sector Undertakings, if they contain the address;
    iv) letter of allotment of accommodation from employer issued by State Government or Central Government Departments, statutory or regulatory bodies, public sector undertakings, scheduled commercial banks, financial institutions and listed companies and leave and licence agreements with such employers allotting official accommodation;
    The customer shall submit OVD with current address within a period of three months of submitting the documents specified above.

    7. where the OVD presented by a foreign national does not contain the details of address, in such case the documents issued by the Government departments of foreign jurisdictions and letter issued by the Foreign Embassy or Mission in India shall be accepted as proof of address.
    8. A document shall be deemed to be an OVD even if there is a change in the name subsequent to its issuance provided it is supported by a marriage certificate issued by the State Government or Gazette notification, indicating such a change of name.
    9. KYC verification once done by one branch/office of the Company shall be valid for transfer of the loan account to any other branch/ office of the Company, provided full KYC verification has already been done for the concerned loan account and the same is not due for periodic updation.
    10. If an existing KYC compliant customer of the Company desires to open another account, there shall be no need for a fresh CDD exercise.

  • VIII. Operational Guidelines related to Payments
    1. Payment of cheques, drafts, pay orders, Banker’s cheques, if they are presented beyond the period of three months from the date of such instruments, shall not be made.
    2. The Company shall not collect account payee cheques for any person other than the payee constituent.
    3. The Company shall obtain PAN of customers and verify while undertaking transactions as per the provisions of Income Tax Rule 114B (as amended from time to time).
    4. The Company shall obtain Form-60 from the persons who do not have PAN.

Grievance Redressal Mechanism

  1. How to log in a complaint/where can a complaint be made Any customer having a grievance / complaint / feedback with respect to the product and services offered by Auriolus Finvest Private Limited (hereinafter referred to as the ‘Company’) may write to the Company’s Customer Service Department through any of the following channels:

    Call our Customer Service Helpline 0124-4412620 / 9958871847

    Email- contactus@bizfunds.com

    Write to us-
    Plot No 88, Udyog Vihar, Phase IV, Gurugram, Haryana – 122015

  2. How a complaint should be made Customers are requested to necessarily provide necessary loan details i.e. Loan Account Number, Details of Feedback / Suggestion / Complaint and valid Contact Information including Phone No. & e-Mail ID while lodging communication with the Company.
  3. When to expect a reply The Company shall endeavour to address/respond to all queries/grievances within reasonable time and keep the customer informed about the status of their complaints. Each customer query/complaint being unique in nature, may take up to 15 days for complete resolution after investigation.
  4. Escalation to the Grievance Redressal Officer Customers are requested to first raise their concerns through any of channels mentioned above. In case of delayed or no response from the respective channel within 15 days or if the customer is not satisfied with the response received from Customer Service, such complaints/grievances may be escalated to the Grievance Redressal Officer of the Company whose details are as given below:

    Grievance Redressal Officer: Ms. Preeti Jain

    E-mail ID: grievanceredressal@bizfunds.com

    Telephone no.: 0124-4412620 / 9958871847

    Address: Plot No. 88, Udyog Vihar, Phase 4, Gurgaon, Haryana - 122015

  5. Escalation to the Reserve Bank of India If the Customer does not receive any response from the Company within a period of one month or is dissatisfied with the response received, he/ she may approach the Reserve Bank of India at the following address:


    The General Manager,
    Department of Non-Banking Supervision,
    Reserve Bank of India,
    6, Parliament Street,
    New Delhi - 110001
    Ph. 011-23714456
    E-mail: dnbsnewdelhi@rbi.org.in

Policy for determining Interest Rate, Processing and Other Charges

  1. Introduction
    Pursuant to Master Direction - Non-Banking Financial Company – Non-Systemically Important Non-Deposit taking Company (Reserve Bank) Directions, 2016 dated September 01, 2016 read with RBI Circular DNBS.PD/ CC. No. 95 /03.05.002 /2006-07 titled “Complaints about excessive interest charged by NBFCs” dated May 24, 2007 and RBI Circular DNBS (PD) C.C. No. 133 /03.10.001/ 2008-09 titled “Regulation of excessive interest charged by NBFCs” dated January 02, 2009 (as amended from time to time), the Board of Directors of Auriolus Finvest Private Limited (hereinafter the “Company”) has adopted the following internal Guidelines, Policies, Procedures and Interest Rate Model (hereinafter the “Policy”).
  2. Objectives of the Policy
    To determine interest rates, processing and other charges to be charged for loans and advances and matters relating thereto keeping in view the RBI guidelines and good governance practices.
  3. Application of the Policy
    This Policy is applicable to all categories of products and services offered (currently offered or which may be introduced at a future date) by the Company.
  4. Factors
    While determining Rate of Interest, Processing Fees and other Charges, the Company considers inter alia the following factors:

      a) Cost Factors which will include Cost of Funds / Borrowing, Fixed & Variable Transaction Costs to the Company

      b) Margin for the Company for maintaining stakeholders’ expectations for a reasonable and market competitive rate of return

      c) Risk Premium which will include the following:

        • Inherent credit and default risk in the business

        • Risk Premium attached with a Customer based on financial positions, stability in earning, credit reports, past repayment track record, Customer relationship, market reputation, compliance record and future business potential etc.

        • Nature and value of securities offered by Customers

        • Prevailing Competitive, Economic and Financial scenario

  5. Rate of Interest, Processing Fees and other Charges
    1. The Company has adopted a risk-based approach for classification of Customers for determining applicable rate of interest, which differs for each Customer based on risk factors mentioned above. Hence, the rate of interest and other fees / charges for the same product and tenure availed during same period by different Customers cannot be standardized.
    2. The Company will not charge interest more than 24% per annum. The penal interest will be up to 2% per month for the overdue period.
    3. The Company will charge the Processing Fee (non- refundable) from 0% to 2.5% of the sanctioned loan facility based on the quantum of work involved in credit appraisal, reference checks with credit bureaus, volume of documentation involved and incidental expenses involved in the transaction.
    4. Other fees / charges such as RTGS/other remittance charges, re-scheduling charges, charges for issue of account statement, No Dues Certificate etc. would be levied by the Company wherever considered necessary.
    5. Besides above fees / charges, Government Fees (on actual basis) plus applicable taxes shall be payable by the Customers.
    6. In case of multiple disbursements in respect of the same loan account, the rates of interest would be subject to review and the same may vary according to the prevailing rate at the time of successive disbursements or as may be decided by the Company.
    7. The rate of interest will be annualised rate so that the Customer is aware of the exact rates that would be charged to the account.
    8. The rate of interest and other charges offered by the Company are indicative and the Company reserves the right to charge differential rates for certain Customers based on risk factors, market and other conditions at the sole discretion of the Company subject to maximum 24% per annum.
    9. The applicable rate of interest and other fees / charges would be communicated explicitly in the Sanction Letter / Loan Agreement.
    10. Claims for refund or waiver of fees / charges / penal interest would normally not be entertained by the Company and it is at the sole and absolute discretion of the Company to deal with such requests.
    11. The Company shall, at the time of disbursal, ensure that the interest rate and other fees / charges on loan and advances are in strict adherence to this Policy.
    12. The rate of interest and other fees / charges are subject to change. Changes in the rate of interest and other fees / charges would have a prospective effect and intimation of change of interest or other charges would be communicated to the Customers.
  6. Publication
    This Policy shall be displayed at all our offices and published on the website of the Company for the information of various stakeholders
  7. Review
    The Board of Directors of the Company may from time to time review/modify this Policy as considered necessary.

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