Updated for 2026 Syllabus Detailed Explanations High-Yield Core Concepts

Bank Promotion Exam Guide

Banking Awareness | Banking Knowledge | for all Bank Exams

Home » RBI KYC Guidelines MCQs –… » General Practice
Module: General Practice

Q12: What does "On-going Due Diligence" mean?

A
The initial process of identifying and verifying a new customer.
B
The one-time verification of a beneficial owner.
C
Regular monitoring of transactions in accounts to ensure they are consistent with knowledge about the customer, their business, risk profile, and source of funds.
D
The periodic updation of KYC documents every ten years for low-risk customers.
✅ Correct Answer: C
"On-going Due Diligence" is defined as the regular monitoring of transactions to ensure consistency with the customer's profile.
This continuous monitoring is a mandate under the Prevention of Money Laundering Act (PMLA) and a key concept in RBI KYC Guidelines MCQs.
← Previous (Q11) Which of the following statements regarding "... Next (Q13) → The definition of "Regulated Entities" (REs) ... 📚 Back to General Practice

🔄 More from General Practice: