Module: | MODULE A: INTERNATIONAL BANKING
Q52: Consider the following statements regarding the Permanent Account Number (PAN) requirements:
1. Furnishing a PAN is mandatory for all transactions under this scheme, regardless of the amount.
2. Transactions below USD 25,000 are exempt from the PAN requirement.
3. The bank must verify the PAN to ensure compliance with the aggregate limit monitoring.
Which of the statements given above is or are correct?
2. Transactions below USD 25,000 are exempt from the PAN requirement.
3. The bank must verify the PAN to ensure compliance with the aggregate limit monitoring.
Which of the statements given above is or are correct?
✅ Correct Answer: B
🎯 Quick Answer:
Statement 1 is correct (PAN is mandatory for all). Statement 3 is correct. Statement 2 is incorrect as no exemption exists.
Concept Definition: PAN Mandate.The Permanent Account Number is the primary tracking tool used by regulators to monitor the aggregate remittance limit.Structural Breakdown: Universal Mandate: There is no minimum threshold for PAN.Even a remittance of USD 1 requires the remitter to furnish their PAN.Purpose: Since an individual can use multiple banks to remit funds, the RBI uses the PAN to aggregate data from all banks in real-time to ensure the USD 250,000 limit is not breached across the banking system.History: An exemption for small amounts up to USD 25,000 existed previously but was withdrawn to tighten compliance and curb structuring (splitting large amounts into small ones to hide them). Statement 1 is correct (PAN is mandatory for all). Statement 3 is correct. Statement 2 is incorrect as no exemption exists.