Rapid revision
Test one fact at a time:open a card, recall the direct answer, then practise it in MCQ format.
When a branch or majority-owned subsidiary of a bank located abroad faces a variance between the KYC/AML standards prescribed by the RBI and the host country regulator, which standard must it adopt?
In the context of wire transfers, what is a "Cover Payment"?
Direct Answer
A wire transfer combining a direct payment message to the beneficiary institution, with a separate funding instruction sent through intermediary institutions.
How is the "Video based Customer Identification Process (V-CIP)" treated for the purpose of Customer Due Diligence (CDD)?
Direct Answer
It is treated on par with face-to-face Customer Identification Process (CIP).
How frequently must a bank review its internal "Money Laundering (ML) and Terrorist Financing (TF) Risk Assessment"?
Which specific function regarding KYC norms is a bank prohibited from outsourcing?
Direct Answer
The decision-making functions of determining compliance with KYC norms
When rejecting an application for onboarding or periodic updation of KYC, what specific procedural requirement must the concerned officer fulfill?
When a customer submits a "Proof of Possession of Aadhaar Number" where authentication is not required (e.g., voluntarily), what specific action must the bank ensure regarding the Aadhaar number on the document?
Direct Answer
The customer must redact or black out the Aadhaar number through appropriate means.
A "Small Account" can be credited with foreign remittances, provided the amount does not exceed ₹10,000 in a month.
Direct Answer
False, foreign remittances are strictly prohibited unless full KYC is completed.
According to the guidelines on "Monitoring of Transactions", how frequently must a bank review the risk categorization of customer accounts?
In the context of customers unable to provide PAN or Form No. 60, "temporary ceasing of operations" in relation to an account is defined as:
Direct Answer
The temporary suspension of all transactions, except for allowing credits in asset accounts (such as loan accounts).
How are "Politically Exposed Persons" (PEPs) defined for the purpose of the RBI (Commercial Banks – KYC) Directions, 2025?
Direct Answer
Individuals who are or have been entrusted with prominent public functions by a foreign country.