KYC policy of the banks, as per RBI directives should provide for:
(a) customer acceptance policy
(b) customer identification procedure
(c) monitoring of transactions
(d) risk management
(b) customer identification procedure
(c) monitoring of transactions
(d) risk management
Important Questions on Banking Law and Practice
For KYC policy, the customer has been defined as a:
(a) person that is engaged in a financial transaction or activity with a regulated entity
(b) an entity that is engaged in a financial transaction or activity with a regulated entity
(c) a person on whose behalf the person who is engaged in the transaction or activity is acting:
Under KYC guidelines, where a customer does not comply with the KYC requirement, his account can be closed.
(a) decision to close the account should be taken at a high level
(b) account should closed after giving due notice to the customer
(c) account should be closed after explaining the reasons to the customer:
Which of the following customer does not fall under low-risk category under KYC guidelines:
a. Salaried employees
b. Persons from lower strata of the society
c. Govt. departments
d. Trusts
Which of the following customers fall under the high risk category customers from KYC purposes:
(a) politically exposed persons of foreign origin
(b) companies having close shareholding
(c) firms having sleeping partners
(d) high net worth individuals.
As per KYC guidelines, the banks cannot have correspondent arrangements with Shell Banks. For this purpose, the 'Shell Bank' mean:
a. a bank having no existence but on paper only
b. a bank incorporated outside India and having a branch in India
c. a bank incorporated in a country where it has no existence and it is not regulated by a regulating authority
d. a bank incorporated outside India and banned by UNO to have operations other than in the country of incorporation
As per Prevention of Money Laundering Act, the banks are required to maintain record of transactions for a period of from date of cessation of the transaction:
a. 2 years
b. 5 years
c. 10 years
d. 20 years
a. Rs. lakh, one-month
b. above Rs. lakh, one-month
c. above Rs. lakh, a single day
d. Rs. lakh, a single day
As per Prevention of Money Laundering Act, the banks are required to submit to Financial Intelligence Unit-India, monthly statement of large cash transactions called, CTR. It is to be submitted for transactions of Rs. _____ and within ______ of the close of the month:
a. Rs.10 lac, 7 days
b. above Rs.10 lac, 7 days
c. above Rs.10 lac, 15 days
d. Rs.10 lac, 5 days
