BUISENESS MANAGEMENT
RISK MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Only for some borrowal accounts
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To all borrowal accounts
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Only to deposit accounts
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None of the above
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Detailed explanation-1: -KYC or ‘know your customer’ is a mandatory verification procedure carried out by financial institutions with the goal of minimising illegal activities. Since 2004, the Reserve Bank of India has prohibited individuals to open a bank account, trading account or demat account without fulfilling the KYC procedure for KYC.
Detailed explanation-2: -Who needs to have KYC processes? KYC is required for any financial institution that deals with customers while opening and maintaining financial accounts. When a business onboards a new client, or when a current client acquires a regulated product, standard KYC procedures generally apply.
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.