JAIIB · PPB

A OPERATIONAL ASPECTS OF KYC

Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Principles and Practices of Banking — JAIIB.

1 video class 66 one-liners

Quick revision

One-liners from this chapter

Free sample — 8 of 66 rapid-fire Q&A cards.

What does KYC stand for in the context of Indian banking?

KYC stands for Know Your Customer. It refers to the process by which banks verify the identity and address of their customers before or during the course of business.

What is the meaning of 'Customer Identification Procedure' (CIP) under KYC?

Process of verifying customer identity using valid documents before account opening.

Which regulatory body has issued the Master Direction on KYC for banks in India?

The Reserve Bank of India (RBI) has issued the Master Direction on KYC, which all Regulated Entities including banks must comply with.

What is the difference between KYC and AML in banking compliance?

KYC verifies identity; AML prevents and detects money laundering activities.

What is the primary objective of KYC norms in banking?

The primary objective of KYC norms is to prevent banks from being used, intentionally or unintentionally, by criminal elements for money laundering or terrorist financing activities.

What is the role of a Designated Director under the PMLA framework?

Ensures compliance with PMLA obligations and oversees AML/KYC implementation.

What is a Customer Due Diligence (CDD) procedure in KYC?

CDD is the process of identifying and verifying the identity of the customer and beneficial owner, and understanding the nature and purpose of the business relationship to assess associated risks.

What is 'ongoing due diligence' in the context of KYC operations?

Continuous monitoring of customer transactions to match their risk profile.

Unlock all 66 one-liners

Self-quiz mode with hidden answers + printable deck.

Open the deck

Watch & learn