Updated for 2026 Syllabus Detailed Explanations High-Yield Core Concepts

Bank Promotion Exam Guide

Banking Awareness | Banking Knowledge | for all Bank Exams

Module: | KYC, NPAs, Advances & Investment Valuations

Q250: Banks are permitted to inform a customer of their specific "Risk Categorization" (Low, Medium, or High) to ensure transparency in the banking relationship.

A
True
B
False
C
True, but only for High-Risk customers
D
True, but only upon written request from the customer.
✅ Correct Answer: B
The bank shall keep the risk categorisation of a customer and the specific reasons for such categorisation confidential and shall not reveal this information to the customer to avoid tipping off.