BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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It is used for customer identification
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It is used for increasing the CRR of banks
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It is used for money laundering
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Both A and C
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Detailed explanation-1: -Know Your Customer (KYC) standards are designed to protect financial institutions against fraud, corruption, money laundering and terrorist financing. KYC involves several steps to: establish customer identity; understand the nature of customers’ activities and qualify that the source of funds is legitimate; and.
Detailed explanation-2: -eKYC: It is carried out with the help of an investor’s Aadhaar number. While completing the eKYC process, the authentication of the investor’s identity can be done either via a one time password or biometrics. This data is uploaded into the records of the KRA. CKYC: It allows investors to carry out their KYC only once.
Detailed explanation-3: -Reserve Bank of India has issued regulatory guidelines on Know Your Customer (KYC) norms / Anti Money Laundering (AML) Standards / Combating of Financing of Terrorism (CFT) from time to time.
Detailed explanation-4: -KYC process includes ID card verification, face verification, document verification such as utility bills as proof of address, and biometric verification.