Q56: How are "Politically Exposed Persons" (PEPs) defined for the purpose of the RBI (Commercial Banks – KYC) Directions, 2025?

Individuals entrusted with prominent public functions by the Government of India.

Individuals who are or have been entrusted with prominent public functions by a foreign country.

High Net Worth Individuals (HNIs) with political connections.

All elected representatives of the Indian Parliament and State Assemblies.

✅ Correct Answer: B

'Politically Exposed Persons' (PEPs) are individuals who are or have been entrusted with prominent public functions by a foreign country.

The definition of PEPs is a standard question in the IIBF AML KYC Exam 2026.

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