Document Verification for Account Opening
Banks must ensure the partnership firm is legitimate before opening a current account or offering financial services.

• Require a copy of the partnership deed, signed by all partners
  
• Ask for the registration certificate (if the firm is registered)
  
• Verify the PAN card of the firm and the Aadhaar/PAN of partners
  
• Need proof of business address (rent agreement, utility bill, etc.)
  
• Often requires a letter of authority or resolution naming the authorized signatory
  

KYC and Regulatory Compliance
Under RBI and government norms, banks conduct KYC checks to prevent fraud, money laundering, and illegal transactions.

• Collect identity and address proof of all partners
  
• Require registration details to confirm the firm’s legal status
  
• Check if the firm is compliant with tax registrations (e.g., GST)
  
• Screen firms under financial and anti-money laundering (AML) laws
  
• Ensure that the firm is not blacklisted or barred by authorities
  

Authentication of Legal Status
Banks do not “certify” registration but verify the authenticity of submitted documents to assess legal compliance.

• Check if the registration certificate is genuine and matches deed details
  
• Verify signatures and confirm the firm name matches government records
  
• Inquire with the Registrar of Firms if any doubts arise
  
• Confirm that the firm’s status (registered/unregistered) is properly disclosed
  
• Ensure that operating instructions align with partnership terms
  

Reporting and Documentation for Credit Facilities
When a partnership firm applies for loans, overdrafts, or credit, banks carry out deeper verification for risk assessment.

• Assess the firm’s registration and operational history
  
• Request audited financial statements and tax filings
  
• May conduct site visits to confirm business existence
  
• Examine the partnership deed for liability clauses and authority limits
  
• Require written guarantees or collateral based on the firm’s structure
  

Limitations and Clarification
Banks are not the registering authority and cannot issue or cancel registration certificates. Their role is administrative and compliance-based.

• They rely on documents issued by the Registrar of Firms or the MCA
  
• Cannot correct or amend partnership records—they can only request clarity
  
• May deny service if documentation is incomplete or misleading
  
• Not responsible for inter-partner disputes or deed interpretation
  

Advise customers to consult legal professionals for registration issues