Module: | KYC, NPAs, Advances & Investment Valuations
Q176: Regarding the "Simplified norms for Self Help Groups (SHGs)," which of the following statements are correct?
1. The bank must perform Customer Due Diligence (CDD) on all members while opening the savings bank account of the SHG.
2. The CDD of all the office bearers shall suffice for opening the savings account.
3. The bank may undertake CDD of all the members of an SHG at the time of credit linking.
4. SHGs are not permitted to open savings accounts without PAN cards for all members.
2. The CDD of all the office bearers shall suffice for opening the savings account.
3. The bank may undertake CDD of all the members of an SHG at the time of credit linking.
4. SHGs are not permitted to open savings accounts without PAN cards for all members.
✅ Correct Answer: B
The bank shall not require CDD of all members while opening the savings account; CDD of office bearers suffices.
CDD of all members may be done at credit linking.
CDD of all members may be done at credit linking.