Module: | Deposits, Reserve Ratios & Branch Authorisation
Q298: Which of the following operational and security conditions apply to the installation of Cash Deposit Machines (CDMs) or Bunch Note Acceptor Machines (BNAMs)?
1. They can be installed at any place identified by the bank that has adequate security.
2. The machine must be configured to automatically impound and confiscate any counterfeit note detected.
3. The machine must not return any note to the customer which is suspect or counterfeit.
4. A complete audit trail of transactions must be preserved, to enable the reporting of specific counterfeit notes to police/regulatory authorities.
2. The machine must be configured to automatically impound and confiscate any counterfeit note detected.
3. The machine must not return any note to the customer which is suspect or counterfeit.
4. A complete audit trail of transactions must be preserved, to enable the reporting of specific counterfeit notes to police/regulatory authorities.
✅ Correct Answer: B
The correct answer is B. Statements 1, 3, and 4 are correct.
Under the stringent regulatory framework for Cash Deposit Machines (CDMs) and Bunch Note Acceptor Machines (BNAMs), the machine must be strictly configured not to return any suspect or counterfeit note to the customer under any circumstances.
Instead, it must immediately impound the note and generate a complete, traceable audit trail of the transaction to enable mandatory reporting to the police and regulatory authorities.
Statement 2 is technically redundant as it is completely covered by the explicit legal mandates in statements 3 and 4 regarding non-return and traceability.
Therefore, option B accurately captures the required operational and security conditions.
Under the stringent regulatory framework for Cash Deposit Machines (CDMs) and Bunch Note Acceptor Machines (BNAMs), the machine must be strictly configured not to return any suspect or counterfeit note to the customer under any circumstances.
Instead, it must immediately impound the note and generate a complete, traceable audit trail of the transaction to enable mandatory reporting to the police and regulatory authorities.
Statement 2 is technically redundant as it is completely covered by the explicit legal mandates in statements 3 and 4 regarding non-return and traceability.
Therefore, option B accurately captures the required operational and security conditions.