KYC :::
1. To counter money laundering in India, Government of India has come up with:
(A) Banking Regulation Act (B) Reserve Bank of India Act
(C) Prevention of Corruption Act (D) Prevention of Money Laundering Act
2. The objective of KYC/AML/CFT guidelines is
(A) to prevent banks from being used, intentionally or unintentionally, by criminal
elements for money laundering or terrorist financing activities.
(B) KYC procedures also enable banks to know/understand their customers and their
financial dealings better which in turn help them manage their risks prudently
(C) Either (A) or (B) (D) Both (A) and (B)
3. For the purpose of KYC policy, a 'Customer' is defined as :
(A) A person or entity that maintains an account and/or has a business relationship
with the bank
(B) one on whose behalf the account is maintained (i.e. the beneficial owner).
(C) beneficiaries of transactions conducted by professional intermediaries, such as Stock
Brokers, Chartered Accountants, Solicitors etc. as permitted under the law, the any
person or entity connected with a financial transaction which can pose significant
reputational or other risks to the bank, say, a wire transfer or issue of a high value
demand draft as a single transaction.
(D) All of the above
4. Bank should ensure that any remittance of funds by way of demand draft,
mail/telegraphic transfer or any other mode and issue of travellers' cheques for value
of Rupees _______ and above is effected by debit to the customer's account or
against cheques and not against cash payment.
(A) 20,000 (B) 25,000 (C) 50,000 (D) 1,00,000
5. KYC policies incorporating the following key elements :
(A) Customer Acceptance Policy ; Customer Identification Procedures ;
(B) Monitoring of Transactions ; Risk Management
(C) Either (A) or (B) (D) Both (A) and (B)
6. 'Small account' means a saving account in a banking company as per KYC policy is
where
(A) the aggregate of all credits in a financial year does not exceed rupees one lakh ;
(B) the aggregate of all withdrawals and transfers in a month does not exceed rupees
ten thousand ;
(C) the balance at any point of time does not exceed rupees fifty thousand
(D) all of the above
7. Expansion of CFT is ________
(A) Finance International Unit – India (B) Finance India Unit – India
(C) Financial Intelligent Unit – India (D) Combating Financial Terrorism
8. Expansion of FIN–IND is
(A) Financial International Unit – India (B) Financial India Unit – India
(C) Financial Intelligent Unit – India (D) Financial Intelligence Unit – India
9. As per KYC Policy NPOs/NGOs promoted by United Nations or its agencies may be
classified as ______ Risk Customer.
(A) Low (B) Medium (C) High (D) No Risk
10. Full KYC exercise will be required to be done at least every ....... years for high risk,
........... years for medium risk and ............... years for low risk individuals and entities
(A) 3, 5, 7 (B) 2, 8, 10 (C) 3, 5, 10 (D) 3, 5, 8
11. Positive confirmation (obtaining KYC related updates through e-mail/letter/telephonic
conversation/forms/interviews/visits, etc.) will be required to be completed at least every
...... years for medium risk and at least every..... years for low risk individuals and entities.
(A) 2, 3 (B) 3, 5 (C) 2, 5
12. As per KYC Policy, Risk Categorization of Customers should be carried out at
periodicity of not less than once is _____
(A) 6 months (B) 1 year (C) 2 years (D) 5 years
13. As per KYC Policy, Shell banks are permitted to operate in India, if
(A) Provides full KYC
(B) Provides full KYC as well as confirmation from another Bank
(C) Permitted only as Co-operative bank (D) Not permitted to operate in India
14. As per KYC Policy, Banks should introduce a system of maintaining proper record of
transactions prescribed under _________
(A) Rule 1 of PML Rules 2002 (B) Rule 3 of PML Rules 2002
(C) Rule 1 of PML Rules 2005 (D) Rule 3 of PML Rules 2005
15. Trusts, Charities NGOs and organizations receiving donations from India and abroad
are categorized as __________ Risk Customers
(A) Low (B) Medium (C) High (D) Either a or b or c, depend on turnover
16. Under KYC/AML policy what are the various reports that are required to be submitted
to FIU–IND
(A) CTR and STR (B) CTR and CCR (C) STR Only (D) CTR, STR, CCR
17. Certificate of commencement of Business is required in case of
(A) Pvt. Ltd. Company (B) Public Ltd. Company
(C) Both (A) or (B) (D) Only for Service Sector Enterprises
18. FIU–IND is situated at
(A) New Delhi (B) Mumbai (C) Nagpur (D) Kolkata
19. All office accounts Inter Office accounts, accounts of scheduled commercial banks
may be classified as _______ Risks
(A) Low (B) Medium (C) High (D) Either a or b or c, depend on turnover
20. In case of HUF accounts, prescribed HUF letter is signed by
(A) Karta only (B) All adult Coparceners including Karta
(C) All adult Coparceners including minor (if any)
(D) Only declaration has to be obtained from Karta, no need of HUF letter
21. Fresh photographs will be required to be obtained from minor customer on becoming
major
(A) Every 5 years (B) Every 8 years
(C) On becoming major (D) No such instructions as per KYC rules
22. The increasing complexity and volume of financial transactions necessitate that
customers do not have multiple identities within a bank, across the bank system and
across the financial system. This can be achieved by introducing ......... for each
customer. The......... will help banks to identify customers, track the facilities availed,
monitor financial transactions in a holistic manner and enable banks to have a better
approach to risk profiling of customers.
(A) PAN (B) AADHAR (C) UCIC (D) PASSPORT
23. Politically exposed persons (PEP) are .............individuals who are or have been
entrusted with prominent public functions in a ............ country
(A) Foreign, India (B) Indian, Foreign (C) Indian, Indian (D) Foreign, Foreign
24. The Cash Transaction Report (CTR) for each month should be submitted to FIU–IND
by .......... of the succeeding month
(A) 5th (B) 10th (C) 15th (D) 7th
25. All cash transactions, where forged or counterfeit Indian currency notes have been
used as genuine should be reported by the Principal Officer to FIU–IND in the
specified format not later than ....... working days from the date of occurrence of such
transactions (Counterfeit Currency Report – CCR)
(A) 5 (B) 7 (C) 10 (D) 15
26. The Suspicious Transaction Report (STR) should be furnished within ............ days of
arriving at a conclusion that any transaction, whether cash or non-cash, or a series of
transactions integrally connected are of suspicious nature
(A) 5th (B) 7th (C) 10th (D) 15th
27. The name of the software which is using by banks for analyzing the KYC details at
our centralized cell of KYC
(A) Anlock (B) Kyclock (C) Amlock (D) Aclock
28. RBI has issued KYC guidelines based on the Recommendations of the .........and the
paper issued on ..... for NBFCs by the .......... on Banking Supervision.
(A) Financial Action Task Force, PMLA, Narsimham Committee
(B) Financial Action Task Force, PMLA, Basel Committee
(C) FIU–IND, Customer Due Diligence (CDD), Basel Committee
(D) Financial Action Task Force, Customer Due Diligence (CDD), Basel Committee
QN ANS QN ANS QN ANS
1 D 11 A 21 C
2 D 12 A 22 C
3 D 13 D 23 B
4 C 14 B 24 C
5 D 15 C 25 B
6 D 16 D 26 B
7 B 17 B 27 C
8 D 18 A
9 A 19 A
1. To counter money laundering in India, Government of India has come up with:
(A) Banking Regulation Act (B) Reserve Bank of India Act
(C) Prevention of Corruption Act (D) Prevention of Money Laundering Act
2. The objective of KYC/AML/CFT guidelines is
(A) to prevent banks from being used, intentionally or unintentionally, by criminal
elements for money laundering or terrorist financing activities.
(B) KYC procedures also enable banks to know/understand their customers and their
financial dealings better which in turn help them manage their risks prudently
(C) Either (A) or (B) (D) Both (A) and (B)
3. For the purpose of KYC policy, a 'Customer' is defined as :
(A) A person or entity that maintains an account and/or has a business relationship
with the bank
(B) one on whose behalf the account is maintained (i.e. the beneficial owner).
(C) beneficiaries of transactions conducted by professional intermediaries, such as Stock
Brokers, Chartered Accountants, Solicitors etc. as permitted under the law, the any
person or entity connected with a financial transaction which can pose significant
reputational or other risks to the bank, say, a wire transfer or issue of a high value
demand draft as a single transaction.
(D) All of the above
4. Bank should ensure that any remittance of funds by way of demand draft,
mail/telegraphic transfer or any other mode and issue of travellers' cheques for value
of Rupees _______ and above is effected by debit to the customer's account or
against cheques and not against cash payment.
(A) 20,000 (B) 25,000 (C) 50,000 (D) 1,00,000
5. KYC policies incorporating the following key elements :
(A) Customer Acceptance Policy ; Customer Identification Procedures ;
(B) Monitoring of Transactions ; Risk Management
(C) Either (A) or (B) (D) Both (A) and (B)
6. 'Small account' means a saving account in a banking company as per KYC policy is
where
(A) the aggregate of all credits in a financial year does not exceed rupees one lakh ;
(B) the aggregate of all withdrawals and transfers in a month does not exceed rupees
ten thousand ;
(C) the balance at any point of time does not exceed rupees fifty thousand
(D) all of the above
7. Expansion of CFT is ________
(A) Finance International Unit – India (B) Finance India Unit – India
(C) Financial Intelligent Unit – India (D) Combating Financial Terrorism
8. Expansion of FIN–IND is
(A) Financial International Unit – India (B) Financial India Unit – India
(C) Financial Intelligent Unit – India (D) Financial Intelligence Unit – India
9. As per KYC Policy NPOs/NGOs promoted by United Nations or its agencies may be
classified as ______ Risk Customer.
(A) Low (B) Medium (C) High (D) No Risk
10. Full KYC exercise will be required to be done at least every ....... years for high risk,
........... years for medium risk and ............... years for low risk individuals and entities
(A) 3, 5, 7 (B) 2, 8, 10 (C) 3, 5, 10 (D) 3, 5, 8
11. Positive confirmation (obtaining KYC related updates through e-mail/letter/telephonic
conversation/forms/interviews/visits, etc.) will be required to be completed at least every
...... years for medium risk and at least every..... years for low risk individuals and entities.
(A) 2, 3 (B) 3, 5 (C) 2, 5
12. As per KYC Policy, Risk Categorization of Customers should be carried out at
periodicity of not less than once is _____
(A) 6 months (B) 1 year (C) 2 years (D) 5 years
13. As per KYC Policy, Shell banks are permitted to operate in India, if
(A) Provides full KYC
(B) Provides full KYC as well as confirmation from another Bank
(C) Permitted only as Co-operative bank (D) Not permitted to operate in India
14. As per KYC Policy, Banks should introduce a system of maintaining proper record of
transactions prescribed under _________
(A) Rule 1 of PML Rules 2002 (B) Rule 3 of PML Rules 2002
(C) Rule 1 of PML Rules 2005 (D) Rule 3 of PML Rules 2005
15. Trusts, Charities NGOs and organizations receiving donations from India and abroad
are categorized as __________ Risk Customers
(A) Low (B) Medium (C) High (D) Either a or b or c, depend on turnover
16. Under KYC/AML policy what are the various reports that are required to be submitted
to FIU–IND
(A) CTR and STR (B) CTR and CCR (C) STR Only (D) CTR, STR, CCR
17. Certificate of commencement of Business is required in case of
(A) Pvt. Ltd. Company (B) Public Ltd. Company
(C) Both (A) or (B) (D) Only for Service Sector Enterprises
18. FIU–IND is situated at
(A) New Delhi (B) Mumbai (C) Nagpur (D) Kolkata
19. All office accounts Inter Office accounts, accounts of scheduled commercial banks
may be classified as _______ Risks
(A) Low (B) Medium (C) High (D) Either a or b or c, depend on turnover
20. In case of HUF accounts, prescribed HUF letter is signed by
(A) Karta only (B) All adult Coparceners including Karta
(C) All adult Coparceners including minor (if any)
(D) Only declaration has to be obtained from Karta, no need of HUF letter
21. Fresh photographs will be required to be obtained from minor customer on becoming
major
(A) Every 5 years (B) Every 8 years
(C) On becoming major (D) No such instructions as per KYC rules
22. The increasing complexity and volume of financial transactions necessitate that
customers do not have multiple identities within a bank, across the bank system and
across the financial system. This can be achieved by introducing ......... for each
customer. The......... will help banks to identify customers, track the facilities availed,
monitor financial transactions in a holistic manner and enable banks to have a better
approach to risk profiling of customers.
(A) PAN (B) AADHAR (C) UCIC (D) PASSPORT
23. Politically exposed persons (PEP) are .............individuals who are or have been
entrusted with prominent public functions in a ............ country
(A) Foreign, India (B) Indian, Foreign (C) Indian, Indian (D) Foreign, Foreign
24. The Cash Transaction Report (CTR) for each month should be submitted to FIU–IND
by .......... of the succeeding month
(A) 5th (B) 10th (C) 15th (D) 7th
25. All cash transactions, where forged or counterfeit Indian currency notes have been
used as genuine should be reported by the Principal Officer to FIU–IND in the
specified format not later than ....... working days from the date of occurrence of such
transactions (Counterfeit Currency Report – CCR)
(A) 5 (B) 7 (C) 10 (D) 15
26. The Suspicious Transaction Report (STR) should be furnished within ............ days of
arriving at a conclusion that any transaction, whether cash or non-cash, or a series of
transactions integrally connected are of suspicious nature
(A) 5th (B) 7th (C) 10th (D) 15th
27. The name of the software which is using by banks for analyzing the KYC details at
our centralized cell of KYC
(A) Anlock (B) Kyclock (C) Amlock (D) Aclock
28. RBI has issued KYC guidelines based on the Recommendations of the .........and the
paper issued on ..... for NBFCs by the .......... on Banking Supervision.
(A) Financial Action Task Force, PMLA, Narsimham Committee
(B) Financial Action Task Force, PMLA, Basel Committee
(C) FIU–IND, Customer Due Diligence (CDD), Basel Committee
(D) Financial Action Task Force, Customer Due Diligence (CDD), Basel Committee
QN ANS QN ANS QN ANS
1 D 11 A 21 C
2 D 12 A 22 C
3 D 13 D 23 B
4 C 14 B 24 C
5 D 15 C 25 B
6 D 16 D 26 B
7 B 17 B 27 C
8 D 18 A
9 A 19 A
Pls ans 7 ,14 I feel it’s incorrect and ans 10,20,28
ReplyDeleteSame not mentioned