Which of the following documents shall NOT be ?deemed to be OVD? for the limited purpose of proof of current address?

Offer letter issued by the employer which contains current address of the customer.

Pension or family pension payment orders (PPOs) issued to retired employees by Government Departments or Public-Sector Undertakings.

Property or Municipal tax receipt

Utility bill which is not more than two months old of any service provider

Which of the following set of two documents, is NOT the correct set of documents, which can be accepted at the time of onboarding, for CDD of a proprietorship concern?

IEC (Importer Exporter Code) issued to the proprietary concern by the office of DGFT & Rent deed executed in the name of the proprietor.

License/ certificate of practice issued in the name of the proprietary concern by any professional body incorporated under a statute & License issued by the municipal authorities under Shop and Establishment Act in the name of the firm.

Sales tax/ income tax returns & CST/VAT/ GST certificate in the name of the firm.

Complete Income Tax Return in the name of the sole proprietor where the firm's income is reflected & Utility bills such as electricity, water, landline telephone bills, etc.

Is conversion of existing accounts opened in non-face to face mode to normal allowed through Video-CIP?

Yes, conversion of existing accounts opened in non-face to face mode is allowed by RBI.

No, Video-CIP is available only for onboarding of a new individual customer.

The information collected from the customer at the time of opening the account will be treated confidential and______________________ for cross-selling, without the express permission of the customer.

can be used or divulged for cross selling of products.

What is V-CIP in respect of KYC?

Video Based Customer Identification Procedure

Video Based Country Identity Programme

Video Based Customer Information Policy

Video Based Company Identity Practice

As per RBI guidelines in respect of Video-CIP, the process will be a operated by a specially trained _________________for performing the V-CIP.

Business Correspondent (BC) official

All of the above options are correct.

In our Bank which number is used as UCIC?

Customer Information File (CIF)

Unique Account number of customer

Unique Aadhar number of customer

Unique Customer Identification Code

Ms. Zia a Non-account holder has approached your branch to remit USD 200 to a foreign country as a fee for some application. The service Manager asks for identity documents from him, which she resists stating that she is simply sending a fee, and she is not opening an account. Which of the following statements is correct?

It is necessary to verify the identity of the walk-in customers for all international money transfer operations, irrespective of amount.

There is no need for verification of the identity of Ms. Zia as the amount being remitted is very small.

The permission of the branch head is required to undertake this transaction without obtaining identity documents.

There is no need for verification of the identity of Ms. Zia as the amount being remitted is below Rs 20000.

A customer has submitted Aadhar number voluntarily, wants to provide current address different from the address contained in Aadhaar records, which of the following document will be obtained as a proof of current address?

Simply a self-declaration regarding current address may be obtained.

Letter from employer confirming his current address.

Rent deed/ agreement duly executed with the landlord.

Identity card issued by the employer which is a listed company.

Which of the following document can be accepted by a bank, where Aadhaar letter/ card, voluntarily submitted by a person for opening an account, does not have current address?

A self-declaration regarding current address.

Municipal Tax or Property Tax Receipt.

Utility Bill not older than two months.

Pension Payment order or Family Pension order, if it contains current address.

Can Aadhaar letter/card be accepted as an identity document to open an account from a customer? Which of the following statement is correct?

In case an individual voluntarily provides the Aadhaar number, it can be accepted as an identity document to open an account with a Regulated Entity (RE).

Supreme Court has categorically stated that Aadhar number cannot be accepted as an identity document to open an account with a Regulated Entity (RE).

Aadhar is not included in the list of Officially Valid Documents, hence cannot be accepted as an identity document to open an account with a Regulated Entity (RE).

Aadhar data base does not have the required information for opening an account hence in any case, it cannot be accepted as an identity document to open an account with a Regulated Entity (RE).

Staff should not provide advice or other assistance to individuals who are indulging in _______________________ .

demat account opening activities

Small Account means a savings account in a banking company where:

the balance at any point of time does not exceed rupees fifty thousand

the aggregate of all credits in a financial year does not exceed rupees one lac

the aggregate of all withdrawals and transfers in a month does not exceed rupees ten thousand

Ms C has instructed to transfer her account from branch 'A' to branch 'B'. The account is fully KYC compliant account. The officer at branch 'B' has asked her to submit the identity documents afresh, which she resisted. What are the instructions regarding this?

If KYC verification has already been done for the concerned account and the same is not due for periodic updation, the KYC verification done by 'A' branch will be valid for transfer of account to 'B' branch.

Even if KYC verification has already been done for an account, the KYC verification done by 'A' branch will not be valid for transfer of account to 'B' branch.

If KYC verification has already been done for the concerned account and the same is not due for periodic updation, the KYC verification done by 'A' branch will be valid for transfer of account to 'B' branch only if CIF is also being transferred.

It is the discretion of the branch 'B' to accept or not, the KYC verification already done for the concerned account by 'A' branch.

If the branch has doubt about authenticity / veracity or the adequacy of the previously obtained customer identification data, what is the periodicity for review of profile of Customer?

Whenever the branch has doubt about authenticity / veracity or the adequacy of the previously obtained customer identification data.

Every 2 years for High Risk customers

Every 5 years for Medium Risk customers

Every 8 years for Low Risk customers

The core function of identifying and reporting of suspicious transaction by AML-CFT cell is delayed due to gaps in the information regarding –

All of the above options are correct.

‘occupation’ of the customer

‘income’ / ‘annual turnover’ of the individual/ entity

Can a branch allow crediting foreign remittance in a 'small account'?

Foreign remittance can not be allowed to be credited into the account unless the identity of the customer is fully established through the production of an OVD and PAN/ Form 60.

If the sum of foreign remittance is quite small, Bank can allow to credit the amount in a small account, provided the stipulated monthly and annual limits on aggregate of transactions and balance requirements are not breached.

As the customer has already applied for an OVD, looking to his genuine intention to obtain an OVD, dealing officer can allow to credit the foreign remittance in his account.

Foreign remittance is allowed to be credited into the account by RBI, provided the stipulated monthly and annual limits on aggregate of transactions and balance requirements in such accounts are not breached.

Which of the following document, issued in the name of the firm, can NOT be accepted for CDD exercise in respect of the proprietorship concern?

Lease agreement entered with the lessor, in the name of the firm, which is duly notarized and stamped.

Registration certificate (in the case of a registered concern).

Certificate of practice issued in the name of the proprietary concern by any professional body incorporated under a statute.

Utility bills such as electricity, water and landline telephone bills in the name of the proprietary concern.

As per RBI Guidelines on dealing in Virtual Currencies (VC) in India, which of the following statement is correct asper Customer Acceptance Policy (CAP)?

As per RBI Guidelines, Bank shall not deal in Virtual Currencies (VC) or provide services for facilitating any person or entity in dealing with or settling VCs.

As per RBI Guidelines, Bank shall not deal in Virtual Currencies (VC) but can provide services for facilitating any person or entity in dealing with or settling VCs.

After liberalisation Banks are allowed to deal in any currency including Virtual Currencies (VC).

As per RBI Guidelines, Banks are allowed to deal in few selective Virtual Currencies (VC) or provide services for facilitating any person or entity in dealing with or settling VCs.

Will the small accounts also be subjected to transaction monitoring mechanism, and if there is any suspicion of money laundering or financing of terrorism activities or other high-risk scenarios attached to the transactions in the account, what action will be taken by Bank/branch?

The transactions in the accounts are monitored and when there is suspicion of money laundering or financing of terrorism activities or other high-risk scenarios, the bank/ branch asks the customer to establish identity through production of any of the OVDs.

Looking to large number of small accounts in the Bank, small accounts have been kept out of purview for transaction monitoring, as such no action is warranted on the part of bank/branch.

The transactions in the accounts are monitored and when there is suspicion of money laundering or financing of terrorism activities or other high-risk scenarios, the bank/ branch issues a warning to the account holder to desist from routing such transactions through the small account.

The transactions in the accounts are not monitored as there is no chance of suspicion of money laundering or financing of terrorism activities or other high-risk scenarios in such small accounts, as such no action is warranted on the part of bank/ branch.

The KYC policy includes four key elements. Which of the following is the correct set of these four elements?

Customer Acceptance Policy, Risk Management, Customer Identification Procedures (CIP), Monitoring of Transactions.

Customer Acceptance Policy, Risk Categorisation, Customer Identification Procedures (CIP), Monitoring of Transactions.

Customer Acceptance Policy, Risk Management, Customer Due Diligence, Monitoring of Transactions.

Customer Acceptance Policy, Risk Categorisation, Customer Due Diligence, Monitoring of Transactions

The Customer Acceptance Policy (CAP) section of the Bank’s KYC Policy, lays down the criteria for acceptance of a person as a customer of the bank. Which of the following statement is not correct in respect of CAP?

An account may be opened in anonymous or fictitious/ benami name but it must be ensured that identity of customer does not match with any person or entity whose name appears in the sanction’s lists circulated by RBI.

No account is opened in anonymous or fictitious/ benami name.

No account is opened where the Branch/ Business unit is unable to apply appropriate CDD measures, either due to non-cooperation of the customer or non-reliability of the documents/ information furnished by the customer.

It should be ensured that identity of customer does not match with any person or entity whose name appears in the sanction’s lists circulated by Reserve Bank of India.

In case an OVD, other than Aadhar card, furnished by the customer does not have updated address, which of the following documents shall be ‘deemed to be OVD’ for the limited purpose of proof of current address?

Utility bill which is not more than two months old of any service provider (electricity, telephone, post-paid mobile phone, piped gas, water bill);

Rent agreement executed with the Landlord.

EPF number provided by employer

Lease deed in respect of accommodation provided by any employer

What can be the solution to such situation where Aadhaar letter/card, submitted by a person for opening an account, does not have current address?

Account can be opened by obtaining a self-declaration from the customer regarding current address.

Account cannot be opened until current address is updated in Aadhar database.

Account can be opened with the address mentioned in the Aadhar letter, without bothering for current address.

Account can be opened only at the city/ town mentioned in Aadhar card.

What is expected from branches while opening accounts of Politically exposed Persons (PEPs)?

Branches should gather sufficient information on any person/ customer of PEP category.

Branches should verify the identity of the PEP and seek information about the sources of funds before accepting the PEP as a customer.

Accounts of PEPs should be subjected to enhanced monitoring on an ongoing basis.

Who is a Non face to face customer for bank?

A customer with whom the Branch or any branch official has no direct interaction at the time of opening of account.

A customer who executes all his transactions through Net-Banking and rarely visits his home branch.

When a customer is a legal person.

A customer entering branch premises with face covered with mask

Why are accounts of Politically exposed Persons (PEPs) and their relatives categorised in High Risk?

For all these reasons stated in these options, accounts of PEPs and for the same reason accounts of relatives/ associates of PEPs are categorised in High Risk Category.

PEPs enjoy special status politically, within their country of origin, and also diplomatically in the country where they are acting.

Traditionally a certain amount of confidentiality/ discretion is provided by financial institutions, to the financial activities carried out by PEPs.

In case a PEP receives illegitimate gratification, he/ she may try to launder illegitimate funds through accounts maintained with banks using his clout.

Enhanced Due Diligence (EDD) is required to be exercised in respect of what type of customers-

Relatives and associates of PEPs

All customers categorized under high risk

Who are considered as Politically exposed Persons (PEPs)?

Politically exposed persons are all those individuals who are or have been entrusted in past with prominent public function in a foreign country, e.g., Heads of States or of Governments, senior politicians, senior government/judicial/ military officers, senior executives of state-owned corporations, important political party officials, etc.

Politically exposed persons are only those individuals who are or have been entrusted in past with prominent public function in a foreign country.

Politically exposed persons are only those individuals who are senior politicians, senior government/judicial/ military officers, senior executives of state-owned corporations.

Politically exposed persons are only those individuals who are important political party officials.

A small account can remain operational initially for a period of twelve months which can be extended for a further period of twelve months ?. What are the conditions that are to be fulfilled for such extension?

Provided the account holder applies for any of the OVDs and furnishes evidence of having applied for any of the OVDs during the period of first twelve months of the opening of the said account.

Provided the account holder has crossed the stipulated monthly and annual limits on aggregate of transactions and balance requirements in such account during the period of first twelve months.

Provided the account holder applies at the Home Branch at the end of period of twelve years giving sufficient reasons for not having been able to apply for any of the OVDs.

Provided the account holder applies for any of the OVDs and furnishes the evidence of having applied for any of the OVDs, at the end of period of twenty-four months from the date of opening of the said account.

For opening an account in the name of a sole proprietary firm, CDD of the individual (proprietor) is carried out. In addition to this, the bank should obtain two documents or the equivalent documents thereof as proof of business/activity in the name of the proprietary firm. Which of the following documents will NOT be accepted for the purpose, in the name of the firm?

Duly notarised, Lease or Rent agreement in the name of the firm.

CST/VAT/ GST certificate (provisional/final) in the name of the firm.

IEC (Importer Exporter Code) issued to the proprietary concern by the office of DGFT or Licence/certificate of practice issued in the name of the proprietary concern by any professional body incorporated under a statute.

Utility bills such as electricity, water, landline telephone bills, etc in the name of the firm.

What is meant by ?Contact Point Verification? in respect of CDD of a Proprietorship concern?

Collecting such information as would be required to establish the existence of such firm, and physically verifying the address and activity of the firm at the time of onboarding.

Obtaining introduction from another firm preferably dealing in the same business, in case the firm is not able to provide two documents in the name of the firm at the time of onboarding.

Obtaining names of two references with address and contact numbers, in case the firm is not able to provide two documents in the name of the firm at the time of onboarding.

Collecting such information as would be required to establish the existence and activity of the firm, in case the firm is not able to provide two documents in the name of the firm at the time of onboarding.

While opening current account of a proprietorship firm, is it necessary to ask for two documents in the name of the firm, especially when the proprietor has already submitted PAN number and Aadhar number to the satisfaction of the bank?

Customer due diligence exercise, at the time of onboarding, is not complete unless it is undertaken for the proprietor as well as the proprietorship firm.

If the proprietor has already submitted PAN number and Aadhar number and the same have been verified to the satisfaction of the bank, there is no need to ask for any document in the name of firm.

The proprietorship firm and the proprietor are one and the same persons for taxation and other legal purposes, hence customer due diligence undertaken for the proprietor is sufficient, no need to ask for any document in the name of firm.

It is discretion of the dealing officer, he can waive the requirement of obtention of any document in the name of the firm, in case the proprietor is already having his satisfactorily conducted individual account with the bank.

K2D1234

Authored by Azhagu Muthu

Professional Development

University

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MULTIPLE CHOICE QUESTION

30 sec • 1 pt

In the event of an existing customer or the beneficial owner of an existing account, subsequently becoming a Politically exposed Person (PEP), will the branches take enhanced due diligence measures for such account?

Yes branches should take enhanced due diligence measures for such accounts.

No branches should not take enhanced due diligence measures for such accounts.

An account can not be subjected to EDD in case the status of account holder or beneficial owner gets changed.

Once an account has been opened in normal category it can not be subjected to enhanced monitoring

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which one of the following is not an Officially Valid Document? (OVD)?

Passport

Permanent Account Number (PAN)

Driving Licence

Proof of possession of Aadhaar number

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which one of the following is not an Officially Valid Document? (OVD)?

Passport

Aadhaar number/ card

Driving Licence

Proof of possession of Aadhaar number

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

While onboarding a customer, if Aadhar number has been voluntarily provided as proof of identity and address, which of the following OVD is to be obtained in addition to the Aadhar letter/card, as Aadhar letter/card is not included in the list of OVDs?

Passport with current address.

Driving License with current address

Proof of Possession of Aadhar where offline verification of Aadhar can be undertaken.

No need to obtain any other OVD, where Aadhar number has been provided by the customer for as proof of identity and address

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which one of the following is not an Officially Valid Document? (OVD)?

The Voter's Identity Card issued by the Election Commission of India,

Job card issued by NREGA duly signed by an officer of the State Government.

Landline Telephone Bill

Letter issued by the National Population Register containing details of name and address.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Branches should gather sufficient information on Politically exposed Persons (PEPs), if sufficient information regarding a PEP and sources of funds are not available with bank, what will be adverse effect?

The PEP will not be able to do transactions in the account.

Only a Small account can be opened for a PEP.

The detection of suspicious transactions may become challenging

All the above options are correct.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Live location of the customer (Geotagging) is to be captured during Video CIP, to ensure that customer is physically present in _________________________ .

India

his/ her home

his/ her office

None of the above options is correct.

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