Updated for 2026 Syllabus Detailed Explanations High-Yield Core Concepts

Bank Promotion Exam Guide

Banking Awareness | Banking Knowledge | for all Bank Exams

Module: General Practice

Q3: Under the RBI KYC Directions, the periodicity for "Periodic Updation" (Re-KYC) of customer identification data varies by risk category. Which of the following combinations is CORRECT?

A
High Risk: Every 1 year ; Medium Risk: Every 5 years ; Low Risk: Every 10 years.
B
High Risk: Every 2 years ; Medium Risk: Every 8 years ; Low Risk: Every 10 years.
C
High Risk: Every 2 years ; Medium Risk: Every 5 years ; Low Risk: Every 8 years.
D
High Risk: Every 3 years ; Medium Risk: Every 8 years ; Low Risk: Every 12 years.
✅ Correct Answer: B
The Rule: The mandatory cycles for updating KYC documents are: 1. High Risk: At least once in every 2 years.
2. Medium Risk: At least once in every 8 years.
3. Low Risk: At least once in every 10 years.
Exam Memory Tip: Remember the sequence "2-8-10". This applies even if there is no change in the customer's status, though Low Risk customers have relaxed "self-declaration" norms if their details haven't changed.