KYC & AML Policy Code
Lord Krishna Financial Services Limited • Trade Name: Prest Loans
In compliance with the Reserve Bank of India (Non-Banking Financial Companies – Know Your Customer) Directions, 2025 (RBI/DOR/2025-26/361; DOR.AML.REC.No.280/14.01.003/2025-26 dated November 28, 2025) as amended from time to time, the Prevention of Money Laundering Act, 2002 (“PMLA”) and the Prevention of Money-Laundering (Maintenance of Records) Rules, 2005, the Board of Directors of Prevention of Money Laundering Act, 2002 (PMLA), the Board of Directors of Lord Krishna Financial Services Ltd (“Company”) operating under the trade name “Prest Loans” has adopted this comprehensive KYC & AML Policy.
1. Objectives of the Policy
The primary objectives of our KYC & AML policy framework are:
- To prevent the Company from being used, intentionally or unintentionally, by criminal elements for money laundering or terrorist financing activities.
- To establish robust Customer Identification Procedures (CIP) for establishing the identity of borrowers before granting credit facilities.
- To put in place an effective risk categorization and transaction monitoring mechanism commensurate with the borrower's profile.
- To ensure compliance with all statutory reporting requirements to the Financial Intelligence Unit - India (FIU-IND) and the RBI.
2. The Four Pillars of KYC & AML Governance
Pillar 1: Customer Acceptance Policy (CAP)
Clear criteria for accepting customers. No loan account opened in anonymous, fictitious, or 'benami' names. Checks against UN, MHA, and international sanctions lists.
Pillar 2: Customer Identification Procedure (CIP)
Rigorous verification of borrower identity and address using Officially Valid Documents (OVDs), digital e-KYC, video verification, and legal business existence proofs.
Pillar 3: Risk Management Framework
Grading customers into Low, Medium, and High-risk categories based on turnover, geography, business activity, and Politically Exposed Person (PEP) status.
Pillar 4: Transaction Monitoring
Continuous supervision of repayments, high-value early prepayments, cash velocity, and filing of Suspicious Transaction Reports (STRs) with FIU-IND.
3. Officially Valid Documents (OVD) Matrix
Borrowers must furnish verified copies of documents based on their constitution:
| Borrower Category | Proof of Identity (POI) | Proof of Address (POA) & Business Proof |
|---|---|---|
| Individuals / Proprietors | Aadhaar Card (masked), Passport, Voter ID Card, Driving License, PAN Card | Electricity Bill, Telephone/Broadband Bill, Bank Statement (last 3-6 months), Property tax receipt |
| Sole Proprietorships | PAN of Proprietor, Identity Proof of Proprietor | Registration certificate, GST Certificate, Municipal Trade License, Shop & Establishment Certificate, Udyam Registration |
| Partnership Firms & LLPs | PAN Card of Firm/LLP, Identity Proof of all Partners/Designated Partners | Partnership Deed, LLP Agreement, Registration Certificate with Registrar of Firms, Power of Attorney in favor of signing partner |
| Private & Public Companies | PAN Card of Company, Identity Proof of Managing Director & Authorized Signatories | Certificate of Incorporation (CIN), Memorandum & Articles of Association (MOA & AOA), Board Resolution authorizing loan, List of Directors |
| Trusts & Societies | PAN Card of Trust/Society, Identity Proof of Trustees/Founders | Trust Deed, Registration Certificate, Resolution of Managing Committee to avail loan |
4. Beneficial Ownership (BO) Identification
In compliance with PMLA Rules, the Company identifies the natural person(s) who ultimately own or control the legal entity borrowing funds:
- For Companies: Any individual holding an ultimate controlling ownership interest of more than 10% of shares or voting rights.
- For Partnership Firms & LLPs: Any natural person owning or entitled to more than 15% of capital or profits.
- For Unincorporated Associations / Trusts: Any natural person owning more than 15% of property or acting as Author, Settlor, or Trustee.
5. Appointment of Principal Officer & AML Reporting
The Company has appointed a designated Senior Executive as the Principal Officer responsible for overseeing AML policy implementation, staff training, and reporting obligations to the Financial Intelligence Unit - India (FIU-IND):
Principal Officer (AML & KYC Compliance):
Lord Krishna Financial Services Limited ("Prest Loans")
M5-M6, Essel House, 10 Asaf Ali Road, New Delhi - 110002
Suspicious Transaction Reports (STRs) and Cash Transaction Reports (CTRs) are furnished directly to
Director, FIU-IND under PMLA.
Statutory Adoption
Lord Krishna Financial Services Limited
CIN: U65993DL1992PLC049609 | RBI CoR: B-14.02019
Master Direction on Know Your Customer (KYC) Direction, 2016
Periodic Updates
Subject to ongoing due diligence (CDD). Low-risk borrowers are re-verified every 10 years, medium-risk every 8 years, and high-risk every 2 years.