JAIIB · PPB

OPENING ACCOUNTS OF VARIOUS TYPES OF CUSTOMERS

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

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What is the first step a bank must complete before opening any new account?

The bank must complete the Customer Due Diligence (CDD) process, which includes verifying the identity and address of the prospective customer as per KYC norms mandated by RBI.

What is the minimum age requirement for a minor to independently operate a savings account?

Typically 10 years as per individual bank policy.

Which RBI Master Direction governs the KYC norms for opening bank accounts in India?

The RBI Master Direction on Know Your Customer (KYC) Direction, 2016 (updated periodically) governs KYC norms for opening and operating bank accounts in India.

What happens to a minor's account when they attain majority?

Account must be converted to a regular adult account.

What documents constitute Officially Valid Documents (OVDs) for KYC purposes?

OVDs include Passport, Driving Licence, Proof of possession of Aadhaar number, Voter ID card, NREGA job card, and National Population Register letter with name and address.

Who is the 'Karta' in a Hindu Undivided Family account?

The senior-most male member who manages HUF affairs.

What is the significance of the term 'Customer Due Diligence' in account opening?

Customer Due Diligence (CDD) refers to the process of identifying and verifying a customer's identity, understanding the nature of the customer's activities, and assessing the risk posed by the customer to the bank.

What is a Declaration of Commencement of Business required for when opening a company account?

Required for public limited companies before commencing business operations.

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