BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Identifying people who do not pay Income Tax
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To bring more and more people under the banking net
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To ensure that the money deposited in banks has come from genuine sources
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All of the Above
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Detailed explanation-1: -KYC stands for Know Your Customer. Purpose of introducing Know Your Customer is to ensure tat the money deposited in banks has come from genuine sources. It is introduced mainly to prevent malpractices.
Detailed explanation-2: -The objective of KYC guidelines is to prevent banks from being used, by criminal elements for money laundering activities. It also enables banks to understand its customers and their financial dealings to serve them better and manage its risks prudently.
Detailed explanation-3: -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-4: -KYC means Know Your Customer and sometimes Know Your Client. KYC or KYC check is the mandatory process of identifying and verifying the client’s identity when opening an account and periodically over time. In other words, banks must make sure that their clients are genuinely who they claim to be.
Detailed explanation-5: -KYC stands for Know Your Customers. Money laundering is one of the major challenges faced by banking companies. Know Your Customers norms are launched by the banks to prevent money laundering in general. KYC verifies the identity and other details of the customer.