Q1 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? Q2 Which of the following statements correctly describe the "Controlling Ownership Interest" or entitlement thresholds for determining the Beneficial Owner (BO) of various legal entities? Q3 Which of the following documents is NOT included in the specific definition of "Officially Valid Document" (OVD) for the purpose of verifying identity and address? Q4 For Non-Resident Indians (NRIs) and Persons of Indian Origin (PIOs), the bank may utilize a "Certified Copy" of an OVD. Which of the following officials is authorized to certify such a copy abroad? Q5 Consider the following statements regarding "Deemed Officially Valid Documents" (OVDs) submitted when an OVD does not have an updated address: Q6 Where the customer is a trust, the identification of beneficial owner(s) shall include identification of the author of the trust, the trustee, the beneficiaries with …… interest in the trust, and any other natural person exercising ultimate effective control. Q7 If an Officially Valid Document (OVD) presented by a foreign national does not contain address details, which specific combination of documents is accepted as proof of address? Q8 Which of the following circumstances constitute a "Suspicious Transaction"? Q9 Customer Due Diligence (CDD) is mandatory when carrying out an occasional transaction of an amount equal to or exceeding ……, whether conducted as a single transaction, or several transactions that appear to be connected. Q10 The term "Payable-through accounts" specifically refers to which of the following? Q11 Consider the following statements regarding "Shell Banks": Q12 In the context of wire transfers, what is a "Cover Payment"? Q13 A "Domestic wire transfer" can involve a payment message transfer system located outside of India, provided the ordering and beneficiary financial institutions are both located in India. Q14 How is the "Video based Customer Identification Process (V-CIP)" treated for the purpose of Customer Due Diligence (CDD)? Q15 Which of the following is NOT one of the four key elements that the Know Your Customer (KYC) policy of a bank must include? Q16 A "Serial Payment" in the context of wire transfers is defined as: Q17 How frequently must a bank review its internal "Money Laundering (ML) and Terrorist Financing (TF) Risk Assessment"? Q18 Regarding the "Customer Acceptance Policy," banks are explicitly prohibited from opening accounts in which of the following manners? Q19 Which specific function regarding KYC norms is a bank prohibited from outsourcing? Q20 According to the Customer Acceptance Policy, how should a bank handle a situation where an existing KYC-compliant customer desires to open another account or avail of a new product? Q21 If a bank forms a suspicion of money laundering and reasonably believes that performing the Customer Due Diligence (CDD) process will "tip-off" the customer, it must proceed with the CDD process cautiously. Q22 To ensure compliance with KYC/AML policies, banks must submit audit notes and compliance reports to the Audit Committee at what periodicity? Q23 When rejecting an application for onboarding or periodic updation of KYC, what specific procedural requirement must the concerned officer fulfill? Q24 Banks are permitted to inform a customer of their specific "Risk Categorization" (Low, Medium, or High) to ensure transparency in the banking relationship. Q25 Under which of the following circumstances is a bank required to undertake the identification of customers (Customer Identification Procedure)? Q26 Regarding the opening of bank accounts, what is the specific regulatory stance on "Introductions"? Q27 A bank may rely on Customer Due Diligence (CDD) done by a third party, subject to several conditions. Which of the following is NOT a valid condition for such reliance? Q28 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? Q29 When a bank grants an exception for CDD (e.g., offline verification instead of e-KYC) due to a customer's injury, illness, or old age, which of the following controls must be implemented? Q30 While opening an account, the bank must verify the Permanent Account Number (PAN) from the verification facility of the issuing authority. If the customer furnishes an Officially Valid Document (OVD) that does not have an updated address, they are required to submit an OVD with the current address within a period of …… months. Q31 Accounts opened using Aadhaar OTP-based e-KYC in non-face-to-face mode are subject to strict aggregate limitations. What is the maximum allowable aggregate balance in all deposit accounts of the customer? Q32 Regarding the "Digital KYC Process," which of the following statements correctly describe the requirements for capturing the customer's live photograph? Q33 In the context of the "Digital KYC Process," how is the customer's signature obtained and validated on the Customer Application Form (CAF)? Q34 Which of the following is NOT a permitted use case for the Video-based Customer Identification Process (V-CIP)? Q35 Which of the following statements regarding the "V-CIP Infrastructure" are incorrect? Q36 For borrowal accounts opened using OTP-based e-KYC in non-face-to-face mode, the bank shall sanction only term loans, and the aggregate amount of such term loans shall not exceed …… in a year. Q37 In the Digital KYC process, if a customer does not have their own mobile number, the bank is strictly prohibited from using the mobile number of a family member or relative for the purpose of OTP verification. Q38 If a bank opens a deposit account using OTP-based e-KYC in non-face-to-face mode, what is the maximum period the account can operate before a full Customer Due Diligence (CDD) procedure is required? Q39 When conducting a Video-based Customer Identification Process (V-CIP) using offline verification of Aadhaar via an XML file or Aadhaar Secure QR Code, what is the maximum validity period of the XML file or QR code generation date? Q40 During the Video-based Customer Identification Process (V-CIP), which of the following actions is explicitly invalid or prohibited? Q41 A "Small Account" can be credited with foreign remittances, provided the amount does not exceed ₹10,000 in a month. Q42 Which of the following limitations apply to a "Small Account"? Q43 For a Sole Proprietary firm, if a bank decides to accept only one document as proof of business (instead of the standard two) due to the firm's inability to furnish two, what additional measure is mandatory? Q44 Regarding "Assisted V-CIP," which of the following statements correctly describes the role of Business Correspondents (BCs)? Q45 Which of the following authorities is mandatory to conduct the Vulnerability Assessment, Penetration Testing, and Security Audit of the V-CIP infrastructure? Q46 For opening an account of a Company, which of the following documents is mandatory to obtain as a certified copy? Q47 According to the guidelines on "Monitoring of Transactions", how frequently must a bank review the risk categorization of customer accounts? Q48 Which of the following correctly matches the "Risk Category" with the mandatory minimum periodicity for KYC updation? Q49 For the purpose of opening an account, which of the following entities are explicitly included under the term "Unincorporated Association"? Q50 When opening an account for a Trust, which of the following parties must be identified as part of the beneficial owner identification process? Q51 During periodic updation of KYC for an individual customer, if there is a change only in the address details, the bank must verify the declared address through "positive confirmation" within what timeframe? Q52 When an account holder who was a minor at the time of account opening becomes a major, the bank is required to obtain fresh photographs and ensure that Customer Due Diligence (CDD) documents are available as per current standards. Q53 Regarding the "Due Notices for Periodic Updation of KYC," what is the minimum number of advance intimations and subsequent reminders a bank must send to a customer before the due date and after the due date, respectively? Q54 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: Q55 For accounts opened in non-face-to-face mode (subject to Enhanced Due Diligence), the first transaction must necessarily be a credit from an existing KYC-complied bank account of the customer. Q56 How are "Politically Exposed Persons" (PEPs) defined for the purpose of the RBI (Commercial Banks – KYC) Directions, 2025? Q57 Regarding the "Simplified norms for Self Help Groups (SHGs)," which of the following statements are correct? Q58 When a bank opens a Non-Resident Ordinary (NRO) account for a foreign student pending address verification, what is the cap on the aggregate withdrawal from such an account during the 30-day period? Q59 Regarding the maintenance and preservation of records, which of the following timeframes are correct? Q60 Banks are required to register the details of customers who are Non-Profit Organisations (NPOs) on which specific portal? Q61 When furnishing information to the Director, FIU-IND, a delay of each day in not reporting a transaction constitutes a separate violation. Q62 Regarding Suspicious Transaction Reports (STRs), banks are explicitly prohibited from taking which of the following actions? Q63 Under the "Weapons of Mass Destruction (WMD) and their Delivery Systems (Prohibition of Unlawful Activities) Act, 2005," who is designated as the Central Nodal Officer (CNO) for exercising powers under Section 12A? Q64 According to the guidelines on Secrecy Obligations, in which of the following circumstances is a bank permitted to disclose customer information? Q65 When relying on KYC records retrieved from the Central KYC Records Registry (CKYCR), the bank shall NOT require a customer to submit the same KYC records or additional documents, UNLESS one of the following conditions is met. Which condition allows the bank to ask for fresh documents? Q66 When a bank obtains additional or updated information from a customer, within what timeframe must it furnish this updated information to the Central KYC Records Registry (CKYCR)? Q67 The provisions of the Reserve Bank of India (Commercial Banks – KYC) Directions, 2025, are intended to be in derogation of (i.e., to override) the provisions of any other laws, rules, or regulations for the time being in force. Q68 Regarding the approval process for establishing new "Cross-Border Correspondent Banking Relationships," which of the following statements is correct? Q69 Regarding "Money Mules," if it is established that an account opened and operated is that of a Money Mule, but the concerned bank failed to file a Suspicious Transaction Report (STR), what is the specific regulatory consequence? Q70 For a domestic wire transfer of less than ₹50,000, where the originator is not an account holder of the ordering bank, what information is sufficient to include, if the full originator information can be made available by other means? Q71 All cross-border wire transfers must be accompanied by accurate and meaningful originator information. Which of the following fields are mandatory? Q72 What is the maximum validity period for the presentation of cheques, drafts, pay orders, and banker's cheques? Q73 When an intermediary bank in a wire transfer chain cannot retain the originator or beneficiary information with a related domestic wire transfer due to technical limitations, how long must it keep the record of the information received from the ordering financial institution? Q74 Any remittance of funds by way of demand draft, mail/telegraphic transfer, NEFT/IMPS, or any other mode for a value of …… and above, shall be effected by debit to the customer's account or against cheques, and not against cash payment. Q75 Regarding the sale of "Third Party Products" by a bank acting as an agent, which of the following compliance measures are mandatory? Q76 To minimize the risk of "Money Mules," banks must strictly adhere to instructions on opening accounts. If an account is established to be a Money Mule account, but the bank failed to file a Suspicious Transaction Report (STR), what is the consequence? Q77 Since September 15, 2018, what specific detail must a bank incorporate on the face of a Demand Draft, Pay Order, or Banker's Cheque? Q78 Banks must put in place an adequate screening mechanism as an integral part of their personnel recruitment process. What is this specific policy called? Q79 Which of the following statements are correct regarding the definition and nature of Money Laundering under the Prevention of Money Laundering Act (PMLA), 2002? Q80 Which of the following statements accurately describe the stages and techniques of the Money Laundering cycle? Q81 Consider the following statements regarding the historical origins and international framework of anti-money laundering efforts: Q82 Which of the following statements accurately describe the mechanics of Trade-Based Money Laundering (TBML) and its specific techniques? Q83 Consider the following money laundering vehicles and techniques. Which of the statements below are correct? Q84 Which of the following statements correctly characterize the risks and red flags associated with Money Laundering in the banking sector? Q85 Which of the following statements accurately describe the history, structure, and current leadership of the global anti-money laundering framework (FATF and Basel Committee)? Q86 Consider the FATF's monitoring mechanisms and the consequences of being listed as a "High Risk" jurisdiction. Which of the following statements are correct? Q87 Which of the following statements correctly describe the key provisions and extraterritorial powers of the USA PATRIOT Act (2001) regarding international money laundering? Q88 The UK Proceeds of Crime Act (POCA) 2002 establishes a strict regime for reporting money laundering. Which of the following statements regarding this framework are correct? Q89 Based on recent Supreme Court judgments (including Vijay Madanlal Choudhary and Pavana Dibbur), which of the following statements correctly interpret the scope and nature of the offence of Money Laundering under the PMLA, 2002? Q90 Consider the procedural powers of the Enforcement Directorate (ED) and the constitutional safeguards for the accused as clarified by 2025-2026 jurisprudence. Which of the following statements are correct? Q91 Section 45 of the PMLA imposes "Twin Conditions" for the grant of bail. In light of the Delhi High Court ruling (February 2026) and established precedents, which of the following statements accurately describe this legal standard? Q92 The Financial Intelligence Unit - India (FIU-IND) plays a central role in the AML architecture. Which of the following statements accurately describe its institutional structure and powers under the PMLA, 2002? Q93 Reporting Entities (REs) in India are mandated to file specific reports with the FIU-IND. Which of the following statements regarding these obligations and the definition of REs are correct? Q94 Every Reporting Entity must appoint a "Principal Officer" to manage AML compliance. Consider the following operational protocols regarding this role: Q95 According to the RBI Master Direction on KYC (updated 2025), which of the following statements correctly describe the documentation standards and verification methods for opening bank accounts? Q96 Customer Due Diligence (CDD) involves risk categorization and identifying beneficial ownership. Which of the following statements accurately reflect the current RBI norms? Q97 Terrorist Financing (TF) is conceptually distinct from Money Laundering (ML). Which of the following statements accurately describe these distinctions and the international framework governing them? Q98 The Unlawful Activities (Prevention) Act, UAPA 1967, acts as India's primary anti-terror legislation. Which of the following statements regarding its offences, bail provisions, and asset freezing procedures are correct? Q99 Non-Profit Organizations (NPOs) are considered "High Risk" for terrorist financing. Which of the following statements regarding the global standards (FATF Recommendation 8) and compliance risks are correct? Q100 Correspondent Banking relies on specific terminologies and structures to move money globally. Which of the following statements accurately describe these mechanisms? Q101 Certain correspondent banking services are classified as "Prohibited" or "High Risk" due to their potential for abuse. Which of the following statements regarding Shell Banks and Payable Through Accounts (PTAs) are correct? Q102 The "Travel Rule" (FATF Recommendation 16) and the ISO 20022 standard govern the data that must accompany cross-border wire transfers. Which of the following statements are correct? Q103 The inclusion of Virtual Digital Assets (VDAs) under the PMLA framework has introduced specific compliance mandates. Which of the following statements accurately describe the regulations regarding "Reporting Entities" in the crypto sector? Q104 As financial crime evolves, the banking sector is adopting advanced technologies to enhance AML operations. Which of the following statements regarding the role of AI and the threat of Deepfakes are correct? Q105 Cross-border banking operations require a strategic approach to conflicting regulations and risk management. Which of the following statements align with the RBI Master Direction on KYC and global best practices?