N. S. Toor Solutions for Chapter: Banking Law and Practice, Exercise 35: TEST YOUR SELF

Banks are to keep a close watch on large size cash debit or credit transactions in deposit or loan accounts and keep a record of such transactions. For this purpose, the large size transaction means, where the amount is:

To open an account in the name of a proprietorship firm, which of the following documents can be used for proof of name and address:

(a) certificate/registration document issued by sales tax
(b) certificate/registration document issued by service tax
(c) certificate/registration document issued by professional tax authorities
(d) IEC number issued by DGFT

X has a current account with the bank and he agrees to receive a cheque of Rs.10 lac from B and on the strength of this amount of Rs.10 lac, he issues 5 cheques of Rs.l.90 each inthe name of 5 different persons and retains the balance amount as his commission. Such type of transaction is known as:

In case of high risk customers, full KYC is required to be done by the bank:

Risk category review under KYC has to be undertaken by banks:

As per KYC policy, the banks should not allow opening and/or holding of an account on behalf of a client/s by professional intermediaries, like Lawyers and Chartered Accountants, etc:

If a basic saving bank deposit account is opened as a small account as per KYC guidelines of RBI, which of the following conditions, will not be applicable:

(1) max balance can be Rs.50000
(2) max credit in a financial year can be Rs. 1 lac
(3) per month withdrawal or transfer is restricted to Rs. 10000

If an account is opened for a low risk customers without proper due diligence, in what time the customer verification should be completed: