RBI KYC Guidelines MCQs are the cornerstone topic for banking aspirants aiming for high scores in General Awareness. In this guide, we cover the 67 most important questions derived from the Master Direction. This best-in-class mock test is specifically designed for RBI Grade B, SBI PO, IBPS PO, and All banking exams to help you master the regulatory concepts quickly.
Why This RBI KYC Guidelines MCQs Test Matters?
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✅ General Practice
Q1Consider the following statements:Q2What two pieces of legislation form the primary legal framework for Anti-Money Laundering (AML) and Countering Financing of Terrorism (CFT) in India?Q3Which of the following statements regarding the compliance requirements for foreign branches/subsidiaries of Indian Regulated Entities (REs) are correct?Q4Which of the following statements regarding the identification of a "Beneficial Owner" (BO) are correct?Q5Which of the following statements regarding "Officially Valid Documents" (OVDs) are correct?Q6When identifying the beneficial owner(s) for a trust, which of the following parties must be identified?Q7For Non-Resident Indians (NRIs), a certified copy of an officially valid document can be obtained from all of the following except:Q8Which of the following statements regarding the "Designated Director" are correct?Q9What does the "Digital KYC" process involve?Q10A "Suspicious transaction" is a transaction that gives rise to a reasonable ground of suspicion for all of the following reasons except:Q11Which of the following statements regarding "Customer Due Diligence (CDD)" are correct?Q12What does "On-going Due Diligence" mean?Q13The definition of "Regulated Entities" (REs) includes all of the following except:Q14What is a "Shell Bank"?Q15The "Video based Customer Identification Process (V-CIP)" is described as an alternate method of customer identification with facial recognition and …… by an authorised official of the Regulated Entity (RE).Q16In the context of wire transfers, what does "Cross-border wire transfer" refer to?Q17Every Regulated Entity (RE) which is part of a group must implement group-wide programmes against money laundering and terror financing. What must these programmes include?Q18Which of the following statements regarding the 'Designated Director' and 'Principal Officer' are correct?Q19Which of the following statements regarding a Regulated Entity's (RE's) Customer Acceptance Policy are correct?Q20According to the Money Laundering (ML) and Terrorist Financing (TF) Risk Assessment guidelines, what is the minimum frequency for reviewing the risk assessment exercise?Q21What is the rule regarding the outsourcing of Know Your Customer (KYC) norms?Q22If an existing KYC compliant customer of a Regulated Entity (RE) desires to open another account with the same RE, what is the required procedure?Q23What action should a Regulated Entity (RE) take if it forms a suspicion of money laundering and reasonably believes that performing the Customer Due Diligence (CDD) process will tip-off the customer?Q24What is the policy regarding the disclosure of a customer's risk categorization?Q25For undertaking Customer Due Diligence (CDD) for an individual, what must be obtained in addition to their identity and address proof (like Aadhaar or an OVD)?Q26Which of the following statements regarding a Regulated Entity's (RE's) reliance on a third party for Customer Due Diligence (CDD) are correct?Q27Which of the following statements regarding the use of Aadhaar for customer identification are correct?Q28Accounts opened using Aadhaar OTP based e-KYC in non-face-to-face mode shall not be allowed to operate for more than what period unless full Customer Due Diligence (CDD) is completed?Q29Regulated Entities (REs) may undertake Video based Customer Identification Process (V-CIP) for all of the following purposes except:Q30Which of the following statements regarding the technical and procedural requirements for Video based Customer Identification Process (V-CIP) are correct?Q31Which of the following statements regarding the post-process requirements for Video based Customer Identification Process (V-CIP) are correct?Q32Which of the following statements regarding the rules for a 'Small Account' are correct?Q33Which of the following statements regarding the Customer Due Diligence (CDD) for a sole proprietary firm are correct?Q34According to the rules for identifying a Beneficial Owner (BO) for a Legal Person, in which of the following cases is it not necessary to identify and verify the identity of any shareholder or beneficial owner?Q35What is the minimum periodicity for a Regulated Entity (RE) to conduct a periodic review of the risk categorisation of accounts?Q36What is the minimum periodicity for carrying out periodic updation of KYC for different customer risk categories?Q37For an individual customer categorized as low risk, what is the extended timeline provided for the updation of KYC that has fallen due?Q38For opening an account of a partnership firm, certified copies of all the following documents are required except:Q39Which of the following statements regarding the periodic updation of KYC for an individual customer are correct?Q40Which of the following statements regarding periodic KYC updation procedures are correct?Q41If there is any update in the documents submitted by a customer at the time of establishing an account-based relationship, within what period must the customer submit the update to the Regulated Entity (RE)?Q42Which of the following statements regarding the consequences of non-compliance with PAN or Form No. 60 requirements are correct?Q43Which of the following statements regarding Enhanced Due Diligence (EDD) for non-face-to-face customer onboarding (other than Aadhaar OTP e-KYC) are correct?Q44Which of the following statements regarding "Politically Exposed Persons" (PEPs) are correct?Q45Which of the following statements regarding the preservation of records by Regulated Entities (REs) are correct?Q46What is the rule for Regulated Entities (REs) regarding professional intermediaries who are bound by client confidentiality?Q47What Customer Due Diligence (CDD) is required when opening a savings bank account for a Self Help Group (SHG)?Q48When a bank opens a Non-Resident Ordinary (NRO) account for a foreign student, what transaction limitations apply pending the verification of the local address?Q49What is the requirement for Regulated Entities (REs) regarding customers who are non-profit organisations (NPOs)?Q50Consider the following statements:
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Frequently Asked Questions
Why are RBI KYC Guidelines MCQs critical for banking exams?
They are a high-scoring area in General Awareness and are essential for interview questions in RBI Grade B and PO exams.
Does this test cover the latest amendments?
Yes, these RBI KYC Guidelines MCQs include the latest rules on V-CIP, Digital KYC, and periodic updation.
What is the difference between V-CIP and Digital KYC?
V-CIP is a video-based process, whereas Digital KYC involves capturing a live photo with geo-tagging. Both are covered in our RBI KYC Guidelines MCQs.
How often are KYC norms updated?
The RBI updates the Master Direction periodically. This test reflects the current consolidated guidelines.
Is the PAN card an OVD?
No, the PAN card is not an OVD for address proof, though it is mandatory for financial transactions.
What is the risk review period?
Risk categorization must be reviewed at least once every six months.
Can I use this for JAIIB/CAIIB?
Absolutely. These RBI KYC Guidelines MCQs are highly relevant for the legal and regulatory aspects of JAIIB and CAIIB.
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