Module: | KYC, NPAs, Advances & Investment Valuations
Q193: Consider the following statements regarding the classification and activation of inoperative accounts and DEA Fund transfers:
1. Zero-balance accounts opened for Direct Benefit Transfers (DBT) and Scholarships are entirely exempt from the stipulation of being marked inoperative.
2. The classification of an account as inoperative relies strictly on the absence of customer-induced transactions, completely ignoring bank-induced debits or credits.
3. Banks are permitted to levy standard penal charges for the non-maintenance of minimum balances in accounts classified as inoperative.
4. The DEA Fund website search facility must display the claimant's Name, Address (excluding PIN), and the unique UDRN, while strictly hiding the account number.
Which of the statements given above is/are correct?
2. The classification of an account as inoperative relies strictly on the absence of customer-induced transactions, completely ignoring bank-induced debits or credits.
3. Banks are permitted to levy standard penal charges for the non-maintenance of minimum balances in accounts classified as inoperative.
4. The DEA Fund website search facility must display the claimant's Name, Address (excluding PIN), and the unique UDRN, while strictly hiding the account number.
Which of the statements given above is/are correct?
✅ Correct Answer: A
The correct answer is A. Statement 1 is correct: The regulatory framework strictly exempts zero-balance DBT and Scholarship accounts from being marked inoperative to protect vulnerable beneficiaries.
Statement 2 is correct: The guidelines mandate that inoperative status is determined purely by the lack of customer-induced transactions, explicitly ignoring bank-induced entries like interest credits or service charges.
Statement 3 is incorrect: The rules explicitly ban banks from levying penal charges for the non-maintenance of minimum balances on any account officially classified as inoperative.
Statement 4 is correct: The mandate limits the DEA Fund public search parameters to Name, Address (without PIN), and UDRN to preserve account number anonymity and prevent fraud.
Statement 2 is correct: The guidelines mandate that inoperative status is determined purely by the lack of customer-induced transactions, explicitly ignoring bank-induced entries like interest credits or service charges.
Statement 3 is incorrect: The rules explicitly ban banks from levying penal charges for the non-maintenance of minimum balances on any account officially classified as inoperative.
Statement 4 is correct: The mandate limits the DEA Fund public search parameters to Name, Address (without PIN), and UDRN to preserve account number anonymity and prevent fraud.