Q47: What Customer Due Diligence (CDD) is required when opening a savings bank account for a Self Help Group (SHG)?

CDD of all members of the SHG is required.

CDD of all the office bearers shall suffice; CDD of all members is not required.

CDD of all members of the SHG is required only at the time of credit linking, not for opening the account.

CDD of all office bearers shall suffice for opening the account, and CDD of all members may be undertaken at the time of credit linking.

✅ Correct Answer: D

For SHG savings accounts, CDD of office bearers suffices.

Member CDD is done at credit linking.

This two-stage process for SHGs is a frequent topic in rural banking sections of RBI KYC Guidelines MCQs.

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