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

Q11: Which of the following statements regarding "Customer Due Diligence (CDD)" are correct?

CDD is the process of identifying and verifying the customer and the beneficial owner using reliable, independent sources.




CDD is required when carrying out occasional transactions of an amount equal to or exceeding ₹50,000.




CDD is also required if there are doubts about the veracity or adequacy of previously obtained customer identification data.
A
1 and 2 only
B
2 and 3 only
C
1 and 3 only
D
All of the above
✅ Correct Answer: D
All three statements are correct components of the Customer Due Diligence (CDD) requirements.
CDD is triggered for occasional transactions at or above ₹50,000.
Mastering these triggers is necessary for RBI KYC Guidelines MCQs.