Module: General Practice
Q42: Which of the following statements regarding the consequences of non-compliance with PAN or Form No. 60 requirements are correct?
If a customer with an existing account informs the RE in writing that they do not want to submit their PAN or Form No. 60, the RE must close the account and settle all obligations.
For an asset account (like a loan account), "temporary ceasing of operations" due to failure to submit PAN/Form 60 means only credits shall be allowed.
For a deposit account, "temporary ceasing of operations" means only debits shall be allowed.
For an asset account (like a loan account), "temporary ceasing of operations" due to failure to submit PAN/Form 60 means only credits shall be allowed.
For a deposit account, "temporary ceasing of operations" means only debits shall be allowed.
✅ Correct Answer: A
Statement 1 and 2 are correct.
Statement 3 is incorrect because for deposit accounts, "temporary ceasing" means credits are not allowed (debits are permitted). This operational distinction is critical for RBI KYC Guidelines MCQs.
Statement 3 is incorrect because for deposit accounts, "temporary ceasing" means credits are not allowed (debits are permitted). This operational distinction is critical for RBI KYC Guidelines MCQs.