Q24: What is the policy regarding the disclosure of a customer's risk categorization?

The risk categorization shall be revealed to the customer to ensure transparency.

The risk categorization shall be kept confidential and shall not be revealed to the customer to avoid tipping off.

The risk categorization can be revealed to the customer only if they are categorized as 'low risk'.

The risk categorization must be published in the customer's annual account statement.

✅ Correct Answer: B

The risk categorisation of a customer must be kept confidential and not revealed to them.

This confidentiality is maintained to prevent tipping off, a standard rule in RBI KYC Guidelines MCQs.

Bank Promotion Exam Guide