Module: General Practice
Q191: For an account to remain "Active," there must be a "Customer Induced Transaction." Which of the following is considered a valid Customer Induced Transaction under RBI guidelines?
✅ Correct Answer: D
Correct Answer: D. Both B and C. Concept: Customer-Induced vs.
Bank-Induced Transactions.
Rule: To keep an account in Active status, there must be evidence of customer involvement or intent.
The transaction may be financial or non-financial, but it must originate from the customer.
Customer-induced transactions include submission of Form 15G or 15H, which is an explicit customer action, and auto-renewal of a fixed deposit carried out on the basis of a standing instruction given by the customer at the time of opening the deposit.
Bank-induced transactions include credit of interest by the bank or debit of charges and penalties, as these are system-driven and not initiated by the customer.
Option analysis: Option A is bank-induced and not valid; Option B is customer-induced; Option C is customer-induced; therefore Option D is the correct answer.
Bank-Induced Transactions.
Rule: To keep an account in Active status, there must be evidence of customer involvement or intent.
The transaction may be financial or non-financial, but it must originate from the customer.
Customer-induced transactions include submission of Form 15G or 15H, which is an explicit customer action, and auto-renewal of a fixed deposit carried out on the basis of a standing instruction given by the customer at the time of opening the deposit.
Bank-induced transactions include credit of interest by the bank or debit of charges and penalties, as these are system-driven and not initiated by the customer.
Option analysis: Option A is bank-induced and not valid; Option B is customer-induced; Option C is customer-induced; therefore Option D is the correct answer.