Q22: If an existing KYC compliant customer of a Regulated Entity (RE) desires to open another account with the same RE, what is the required procedure?

A fresh Customer Due Diligence (CDD) exercise must be completed for the new account.

The customer must submit all Officially Valid Documents (OVDs) again.

There shall be no need for a fresh CDD exercise as far as identification of the customer is concerned.

The new account can only be opened after a full risk assessment is conducted again.

✅ Correct Answer: C

If an existing KYC compliant customer wants to open another account, there is no need for a fresh CDD exercise for customer identification.

This efficiency rule is often quizzed in RBI KYC Guidelines MCQs.

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