JAIIB · PPB

operational aspects of KYC and Customer Service

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

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Q

What does KYC stand for in Indian banking?

A

KYC stands for Know Your Customer. It is a process by which banks verify the identity and address of their customers to prevent fraud, money laundering, and terrorist financing.

Q

What is the meaning of 'Customer Acceptance Policy' in KYC framework?

A

Policy defining which customers a bank will or will not accept.

Q

Which RBI Master Direction governs KYC norms for banks in India?

A

The RBI Master Direction on Know Your Customer (KYC) Direction, 2016 governs KYC norms for banks in India, updated periodically by the Reserve Bank of India.

Q

What is the minimum age requirement to open a Basic Savings Bank Deposit Account?

A

No minimum age; even minors can open BSBDA with guardian.

Q

What are the four key elements of a KYC policy as per RBI guidelines?

A

The four key elements are: Customer Acceptance Policy, Customer Identification Procedures, Monitoring of Transactions, and Risk Management.

Q

What is the full form of CKYCRR in the Indian banking context?

A

Central KYC Records Registry.

Q

What is the Customer Identification Procedure (CIP) in KYC?

A

CIP is the process of collecting and verifying Officially Valid Documents (OVDs) to establish the identity and address of a customer before opening an account or conducting a transaction.

Q

Which authority maintains the CKYCR registry in India?

A

Central Registry of Securitisation Asset Reconstruction and Security Interest (CERSAI).

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