Podcast
Questions and Answers
What is the purpose of full KYC in case of Medium Risk Customer Category?
What is the purpose of full KYC in case of Medium Risk Customer Category?
- To request closure of newly opened accounts
- To know the correct location and address of the customer
- To open an account at a place other than the place of work
- To make reasonable effort to determine the true identity and beneficial ownership of accounts (correct)
What is the requirement for identification documents of a guardian or family member who proposes to operate the account?
What is the requirement for identification documents of a guardian or family member who proposes to operate the account?
- A fresh set of identification documents is always required
- No identification documents are required if the guardian or family member is already an account holder
- Identification documents are required only if the guardian or family member is not an account holder (correct)
- Identification documents are only required for high-risk customers
Who is considered a person or entity that maintains an account or business relationship?
Who is considered a person or entity that maintains an account or business relationship?
- A professional intermediary like CA
- A beneficiary of transactions
- One on whose behalf an account is maintained (correct)
- A person who operates an account on behalf of a minor
What is the correct method of opening and verifying an account?
What is the correct method of opening and verifying an account?
What is a characteristic of a high-risk customer?
What is a characteristic of a high-risk customer?
What is the requirement for KYC documents in case of a customer belonging to a low-income group?
What is the requirement for KYC documents in case of a customer belonging to a low-income group?
What is the purpose of knowing the correct location and address of the customer?
What is the purpose of knowing the correct location and address of the customer?
What is the requirement for KYC documents in case of multiple account holders?
What is the requirement for KYC documents in case of multiple account holders?
Study Notes
Account Operation and Identification
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- No identification documents are required for a guardian or family member operating an account if they already have a satisfactorily conducted account.
Customer Identification and KYC
- For Medium Risk Customer Category, full KYC (Know Your Customer) is required to:
- Determine the true identity and beneficial ownership of accounts
- Verify the customer's location, address, and business nature
- Identify the account holder and beneficial owners
Suspicious Account Activity
- Red flags for account activity include:
- Opening an account at a non-work location
- Frequent large deposits from other banks
- Requesting closure of newly opened accounts with high-value transactions
- Inconsistent account opening and verification procedures
KYC Document Requirements
- KYC documents are required for:
- All account members
- All office bearers
- No exemptions for individuals from low-income groups
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Description
Test your knowledge of banking rules and regulations, including account operations and identification requirements.
