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WorksheetsKYC Policy (FY26MTOP001)
Total questions: 30
Worksheet time: 15mins
Kylan Private Limited is a Private Limited Company. The shareholders and shareholding percentage are Mr. Ramesh Kylan (15%), Mr. Siddhesh Kylan (18%), Mrs. Ryna Kylan (10%), Mrs. Dyna Kylan (8.5%), Mr. Junesh Kylan (25%), Mr. Kamal Kylan (8.85%), Others (14.65%). Noone in others holds more than 5% shares. The profit is shared between shareholders corresponding to their shareholding. Which of the following statement is correct?
All of shareholders listed above have Controlling Ownership Interest in the company.
Only Mr. Ramesh Kylan, Mr. Siddhesh Kylan, Mrs. Ryna Kylan, Mrs. Dyna Kylan and Mr. Junesh Kylan are having the Controlling Ownership Interest in the company.
Only Mr. Ramesh Kylan, Mr. Siddhesh Kylan and Mr. Junesh Kylan are the Beneficial Owners as they only have 15% or more shareholdings in the company.
All shareholders having more than 10% shares are Beneficial Owners and hence, Mr. Ramesh Kylan, Mr. Siddhesh Kylan, Mrs. Junesh Kylan are entitled to be Beneficial Owner of the company.
All shareholders having 10% or more are to be classified as Beneficial Owners.
Mr. Kevin Anand is an NRI and settled in Canada. He holds an NRO Account with Union Bank of India, Dharmapur Branch. He is required to send his certified KYC documents to the branch for some purpose. He got the his documents certified by Chief Medical Officer in a Government Hospital equivalent to Chief Surgeon in Canada. He sends the same to the branch in India. Which of the following statement is correct?
The document is acceptable as it is certified by a Surgeon in a Government Hospital.
The document is acceptable if it is certified by a Surgeon with a confirmation that he is authorised to do so by the local government.
The document is NOT acceptable as any document of an NRI can be certified by the local Indian Embassy or Consulate General only.
The document is NOT acceptable as any document of an NRI can be certified by the Local Notary Public only.
None of the above
Mr. Surya approached Suner Branch to open his Savings Accounts. He holds AADHAAR Number and e-KYC may be completed but he is unable to produce any document which is having communication address. As per extant guidelines, what will be further course of action?
The account can not be opened.
The customer need to submit a declaration regarding his communication address and the account may be opened.
The account may be opened after permission by the immediate Controlling Office.
The delegation lies with Branch Head without any further requirement as he customer is able to produce AADHAAR and e-KYC may be completed.
The account may be opened as AADHAAR based e-KYC may be completed.
Mr. John Karty, a PEP, visited the Suratpura Branch of the bank to open an account. Who is having delegation to approve to open the savings account?
The account can not be opened as a PEP poses very high risk to the bank.
Branch Head of Suratpura Branch
Zonal Head of the concerned zone
Senior Management of the bank
RLCC-1
Mr. Rajesh Khatri is having a current account in name & style of "Khatri Traders" with Nazarpur Branch and is classified as Medium Risk. The last re-KYC was completed is 01/01/2023. He has applied for the branch for a term loan for his business. The Credit Officer has requested for submission of KYC documents of the business. Which is the following is most appropriate statement in this case?
The request raised is valid as the customer has applied for a new account.
Last KYC date is 01/01/2023 and hence, the re-KYC is to be completed and hence, the request is valid.
The request to submit the KYC documents is valid but the Branch Head in Scale III may waive as delegation of any waiver w.r.t. KYC lies with Senior Management of the bank.
The KYC documents are not required as re-KYC is not due and KYC is applicable on UCIC level. Hence, the request raised is not valid.
The KYC documents are not required as e-KYC may be completed by the branch any time.
In the current account of Diya & Co, a partnership concern; the Branch Head has noticed that in recent times the transactions in the account has increased which doesn't commensurate with the business profile of the customer. Upon further verification, it was found that the account is being used for money laundering purpose. Further, the Branch Head believes that if the branch goes for CDD, it may tip-off the customer. What action should be taken by the Branch Head?
CDD must be carried out in this case.
CDD may be waived by controlling office.
Branch should not pursue the CDD process but file STR with FIU-IND.
Branch should freeze the account and file STR with FIU-IND.
Branch Head should lodge FIR with local police station.
In the current account of Diya & Co, a partnership concern; in recent times the transactions in the account has increased and the account got auto-classified from Medium Risk to High Risk as on 30/06/2025. The last KYC exercise was conducted on 01/01/2023 but the account was shown as due for re-KYC in the system. Upon contacting the branch for re-KYC exercise, the customer asked that the account was opened just 2 years back. Further, the customer was informed by the Branch Head that due to increased transaction in the account, the account was classified as High Risk and hence, the re-KYC became due. Which of the following statement is most appropriate in this case?
The BH informed the reason of re-KYC exercise as the customer requested. There is no harm in it.
The re-KYC exercise is not required as of August 2025.
The eligibility for re-KYC is justified and the BH acted prudently.
The BH to conduct the re-KYC but should not inform the customer regarding the reason of re-KYC to the customer as it is treated as tipping-off.
The Branch to freeze the account and unfreeze only after completion of re-KYC exercise.
Risk categorisation of customers is based on several parameters related to the customer, such as:
i. Customer’s identity, ii. Social/ financial status, iii. Nature of business activity, iv. Information about the customer’s business, v. Location of the customer, vi. Business levels/ turnover, vii. Delivery channels, viii. Types of transactions
a) ii. and v.
b) ii., v. and vii.
c) i., ii., v. and vii.
d) i. and ii.
e) None
9) Which of the following are correctly matched:
i. Film Production Companies ------ High Risk
ii. Logistics Service Providers ------ Medium Risk
iii. NGO promoted by United Nations ------- High Risk
iv. IT Service Companies ----- Medium Risk
a) All are correctly matched.
b) i and iii only
c) i only
d) i , ii and iv only
e) All are incorrectly matched.
Ketan Khanna has a savings account classified as Low Risk with Lunapur Branch of our bank. His account was opened in 2023 when he was 15 years old under joint operations with his father. When the bank need to conduct the Re-KYC exercise and obtain all the KYC documents given that no alert or suspicion is generated in the account
As the customer is classified as Low Risk, the account will be due for Re-KYC in 2033 i.e. 10 years after opening of the account.
In year 2026 after Mr. Ketan turns major.
As it is a joint account it will be done after 8 years of opening the account the account i.e. the account will be due for Re-KYC in 2031.
As per instructions of controlling office
Branch has to conduct once Mr. Ketan attains 16 years of age.
Rashmi Jahnavi is a student and opened an account with the bank through AADHAAR OTP verification option but she could not complete the V-CIP. As per KYC Policy if normal CDD process is not completed within 1 year, the deposit accounts, if any to be closed immediately. Which of the following is least appropriate in this case?
The aggregate balance of all the deposit accounts of the customer shall not exceed ₹1,00,000.
The aggregate of all credits in a financial year, in all the deposit accounts taken together, shall not exceed ₹2,00,000.
The loan can not be sanctioned as the CDD process is not complete.
A declaration shall be obtained from the customer to the effect that no other account has been opened nor will be opened using OTP based KYC in non face to face mode with any other Bank.
As per our bank procedures, if the VCIP is not completed within 30 days, the account ceases to be operational.
Rashmi Jahnavi is a student and opened a small account with the bank. The branch has informed the following to her:
a. The aggregate of the credits in this account in a FY should not exceed Rs. 1,00,000.00, b. The aggregate of all withdrawals and transfers in a month does not exceed, Rs. 10,000.00, c. The balance at any point of time does not exceed Rs. 50,000.00.
d. The account may be made operational only for 12 months at a stretch., e. The period may be extended for further 12 months on production of the evidence having applied for one of the OVDs.
Which of the information given is incorrect?
d and e
a, b, d
a, b, d and e
c and e.
None
Mr. Ramesh Kataria is having SB account with Tarakpur branch of our bank. He has applied for transfer of his account to Jinathpur branch. The account was transferred to the destination branch. When he approached the Jinathpur branch for operation in his account, it was informed to him that he need to submit the KYC documents again as there is no KYC documents with them. Which of the following statement is correct in this case?
On event of transfer of account from one branch to another, fresh KYC need to be taken, irrespective to the re-KYC due date.
In this case, source branch i.e. Tarakpur branch itself should have conducted the re-KYC documents before transfer of the account irrespective whether re-KYC is due or not.
The account is this case will be frozen for any operation till the time re-KYC is completed.
Employee dress code.The re-KYC process in this case is based on where account based on risk classification. If it is of Medium or High Risk, re-KYC need to be conducted before transfer of the account irrespective of the compliance of KYC or re-KYC is due or not.
All the above statements are incorrect.
M/s Ketak Forgings Pvt Ltd (KFPL) approached Nurgarh branch for opening of current account. The branch officials identified that the account is having complex shareholding structure. On discussing the same with the management of the applicant, it was revealed that KFPL is a subsidiary of M/s Ketak Holdings Pvt Ltd, a listed company on Bombay Stock Exchange. Which of the following is most likely correct in this case to identify the Beneficial Owner?
Irrespective of the situation, BO need to be identified by the branch by studying the documents submitted by the applicant.
As the applicant is a subsidiary of a listed company, no BO to be identified
The parent company of the applicant is listed but the applicant itself is not listed, hence the BO need to be identified.
The requirement of identification of BO may be waived if approved by Reserve Bank of India.
The requirement of identification of BO may be waived if approved by SEBI.
As per KYC Policy of the bank, account of a PEP to be approved by Senior Management of the bank. Which of the following authorities may be considered as Senior Management?
Regional Head
Branch Head
Directors of the bank
RLCC/ZLCC/CAC
MD and Chairman of the bank
Mr. Kyle D Karty is a German Citizen. He got admitted in IIM-Ahmedabad for his PGDBM Course for 2 years. He approached our Gandhinagar Main Branch to open SB account. Which of the following is incorrect in this case?
The account can not be opened as he is not a Indian citizen.
The account may be opened but only with permission from Regional Office.
The account may be opened but only with permission from Reserve Bank of India.
The NRO account may be opened subject to submission of Passport (with VISA & immigration stamp) bearing the proof of identity & address in the home country together with a photograph and a letter offering admission from IIM-Ahmedabad with restriction on funds and other compliances.
The small account of Mr. Kyle may be opened by the branch based on the declaration of his personal details and address in India. Within 1 year of the opening of the account, Mr. Kyle need to be submit an OVD as per RBI guidelines and then, account need to be converted to normal SB Account.
Kishna SHG Group approached Nalanda Branch of our bank to open an SB account. The SHG group has 20 members and 3 office bearers. The branch did request for all the members to visit the branch and asked for submission for KYC documents of all members with other documents.
The branch has acted correctly as per the bank's KYC Policy.
The KYC Policy mandates Simplified Due Diligence for the SHGs and hence, the account may be opened just by submission of the documents pertaining to SHG. KYC documents of the members and office bearers are not required to be obtained.
The KYC Policy mandates Simplified Due Diligence for the SHGs and hence, the account may be opened just by submission of the documents pertaining to SHG and KYC documents of all members.
CDD of all the members are required for opening SB account of the SHGs. Further, visit to the office address need to be conducted.
For opening SB account for SHGs, the CDD of all members are not required, CDD of all the office bearers is sufficient.
A company requests to open a current account but refuses to disclose the names of beneficial owners, citing confidentiality. The Branch Head is unsure whether to proceed. What is the most appropriate step?
Open the account if directors are identified, ignoring beneficial owners.
Reject the application unless beneficial ownership details are disclosed. Further, STR may be filed in this case.
Permit temporary account opening until further documents are furnished.
Open account with enhanced monitoring but without beneficial ownership details.
Accept only board resolution and reject beneficial ownership requirement.
A customer frequently travels abroad and deposits foreign currency in his NRO account. The amounts are modest, but the source of funds is unclear. The branch manager feels reporting is unnecessary as the sums are not large. What is the most appropriate action?
File an STR if the source of funds remains unexplained despite queries.
Ignore as the amounts are not significant in size.
Continue transactions without inquiry as he is an existing customer.
Accept transactions if customer signs self-declaration of source.
Allow transactions freely since they are in foreign currency.
M/s Trishul Management Consultancy is a high risk customer and they refused to provide additional details of source of funds during due diligence exercise for a high value remittance. The Branch Head was under pressure to retain a customer due to his business influence. The source of funds is not being provided, and the account received Rs. 64 Lacs. What is the most appropriate step?
Open the account with normal documentation ignoring high-risk classification.
The source of funds is a very basic requirement. In this case as it is not being provided, the account should be frozen for debit transactions.
The account should not be frozen as it is construed as Tipping Off regarding the Suspicion on the account. Instead, the STR should be filed.
The BM may be satisfied if customer signs a self-declaration of source of funds.
Escalate to branch manager and proceed as per his discretion.
Account of 'Trifo Food SHG' is a low risk customer of a branch. There were few suspicious transactions in the account and the branch filed STR regarding the same. Which risk the customer will be classified post filing of STR?
Low-risk
High-risk
Medium-risk
Moderate-risk
Very high risk
An Enterprise-Wide Risk Assessment (EWRA) is conducted to understand and assess the total ML/TF risks. Which of the following statements is most appropriate?
EWRA is to be conducted for the customers to understand their business risk.
Enterprise Wide Risk Assessment is related to the banks having total business more than Rs. 50 Trillion in India.
EWRA is to be conducted while processing any loan account.
EWRA is a tool used by the bank to understand the total ML/TF risks within it.
All Zonal Offices to conduct EWRA regarding all the high risk customers in the zone.
Charuth Charity Trust has account with Nargeshpur branch. The bank requested for submission of DARPAN Portal details of the trust but despite follow-up, it was not submitted. Which of the following is correct in this case?
DARPAN ID is not to be obtained by branches.
The onus of submission of DARPAN ID is on the customer.
As the customer is not submitting the DARPAN portal details, the bank should get it registered on portal and keep the records with it.
DARPAN registration is option by the NPOs.
All options are correct.
Which of the following are correctly matched:
a. CTR ------ Threshold for reporting is Rs. 10 Lacs for all cash transactions individually or integrally connected
b. STR ------ Threshold is Rs. 5 Lacs
c. CCR ------- Threshold for reporting is Rs. 2 Lacs and above
a and c
b and c
b only
a only
c only
Roop Marketing Services' is maintaining current account with Nagarpur branch. It approached the branch for a RTGS of Rs. 5 Lacs to 'Kasturi Fireworks'. The transaction was not matching with the profile of the customer as normally, the average size of transaction was Rs. 25000.00. When requested for details regarding the transaction, the customer withdrew the instruction and did not proceed. Which of the following statement is most appropriate in this case?
As the request was withdrawn, noting more to be done.
The branch should freeze the account.
The branch should change the risk classification to High.
Branch should file STR in this case.
As the transaction is below Rs. 10 Lacs, the branch need not take any action.
GlassThrough Accountants', an accounting firm approached Narayan Nagar branch to open a current account in their name. On enquiry, it was learnt by branch that the account requested will be a pooled account in which the customers of the firm will deposit their money and the firm will hold fiduciary responsibility of the money. Which of the following is most appropriate in this case?
a. The branch should obtain the Beneficiary Owners of the firm and keep on record.
b. The branch to obtain list of all customers who will be depositing the funds.
c. If the firm is unable to submit the details of the customers depositing money, due to contractual obligations, the branch should not open the account.
a and b
a, b and c
A small account holder exceeds the permitted limit of Rs. 1 lakh total credit in a year but has not submitted OVDs yet. The account was auto-freezed from back-end. When approached for the submission of OVD, the customer is not able to submit the same. What should be the next step?
The branch should not allow any transaction till the submission of OVD and completion of CDD.
Allow continuation since small account is already permitted.
Permit higher limits as goodwill gesture.
Report to RBI before taking any action.
Allow customer to operate with self-declaration only.
A dormant savings account suddenly becomes active, with multiple high-value foreign remittances and quick outward transfers. When contacted, the customer states that he recently started an “import-export consultancy” but cannot provide invoices or contracts. What is the most appropriate action?
Allow operations since remittances are legitimate transactions.
Conduct enhanced due diligence and consider filing STR due to lack of justification.
Ignore since customer has explained verbally about consultancy.
Postpone decision until next similar transaction.
Treat account as high-net-worth and give priority service.
A foreign student from Africa visits a bank to open a savings account. He provides his passport with a valid student visa and a letter from his university confirming his residence in India. However, he does not yet have a local address proof like a utility bill. The account opening officer is unsure whether to proceed.
Accept the passport and visa alone and open a full KYC account without restriction.
Reject the account outright since local address proof is mandatory before opening.
Allow only a small account until full local address verification is complete.
Open the account based on passport, visa, and university letter, but insist on furnishing local address proof within 30 days.
Escalate the case to the regional compliance team before making any decision.
One of the branch official informed to the Branch Head regarding an account that it was opened six months ago and now, there are multiple cash deposits just below INR 50,000, followed by immediate withdrawals. The branch manager argues that since no single transaction exceeds INR 50,000, no reporting is needed. What is the most appropriate action?
File an STR since the structuring of deposits indicates suspicious activity.
Take no action as each transaction is within the permissible threshold.
Seek clarification from the customer but continue operations without STR.
Escalate the case to the compliance team.Ignore since the customer is a local businessman personally known to the staff.
Report only if a single transaction exceeds INR 10 lakhs.
