Updated for 2026 Syllabus Detailed Explanations High-Yield Core Concepts

Bank Promotion Exam Guide

Banking Awareness | Banking Knowledge | for all Bank Exams

Module: General Practice

Q68: Regarding the approval process for establishing new "Cross-Border Correspondent Banking Relationships," which of the following statements is correct?

New relationships require prior approval from the Reserve Bank of India.




New relationships require prior approval from Senior Management.




New relationships require post-facto approval from the Board or the empowered Committee.




New relationships can be approved solely by the Principal Officer.
A
1 and 3 only
B
2 and 3 only
C
2 and 4 only
D
1, 2, and 3 only
✅ Correct Answer: B
The bank shall obtain prior approval from senior management and post-facto approval from the Board or the empowered Committee.
Correspondent banking governance is a high-level topic in the IIBF AML KYC Exam 2026.