Q249: When rejecting an application for onboarding or periodic updation of KYC, what specific procedural requirement must the concerned officer fulfill?

They must obtain approval from the Board of Directors.

They must duly record the reason(s) for rejection.

They must inform the Financial Intelligence Unit (FIU-IND) immediately.

They must obtain a written waiver from the customer.

✅ Correct Answer: B

The bank shall not reject an application for onboarding or periodic updation of KYC without application of mind.

The officer concerned shall duly record the reason(s) for rejection.

Bank Promotion Exam Guide