Which of the following is NOT an officially valid document for completing KYC at a bank?
- A.Passport
- B.PAN card
- C.Voter identity card issued by the Election Commission
- D.Driving licence
Correct answer
Explanation
The correct answer is B, PAN card. The list of officially valid documents in the KYC rules is closed and contains the passport, the driving licence, proof of possession of an Aadhaar number, the voter identity card issued by the Election Commission, a job card issued under MGNREGA and signed by an officer of the state government, and a letter issued by the National Population Register. The PAN card is not in this list because it proves neither address nor, by itself, the standard of identity the rules require.
Options A, C and D are all in the list and are the documents customers most often produce. Note the separate rule that a bank must obtain the permanent account number or a declaration in Form 60 for income tax purposes, which is why many candidates wrongly treat the PAN card as a KYC document. Examiners exploit exactly this confusion, sometimes also placing the ration card among the options.
Read the full article: Bank Accounts, Deposits and KYC Rules for Exams
Practice Questions
View allWhich type of bank account pays no interest to the holder but allows an overdraft facility and an unlimited number of transactions?
- A.Savings deposit account
- B.Current account
- C.Recurring deposit account
- D.Fixed deposit account
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A current account is meant for traders, firms and companies that need to receive and pay money many times a day.
Read the full explanation →The KYC norms that banks in India follow are framed mainly under which law?
- A.Banking Regulation Act, 1949
- B.Prevention of Money Laundering Act, 2002
- C.Negotiable Instruments Act, 1881
- D.Foreign Exchange Management Act, 1999
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Know Your Customer rules exist to stop the banking system being used to launder the proceeds of crime or to finance terrorism.
Read the full explanation →What is the chief feature of a Basic Savings Bank Deposit Account?
- A.It pays a higher rate of interest than other savings accounts
- B.It requires no minimum balance to be kept
- C.It can be opened only by senior citizens
- D.It allows an unlimited overdraft
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The Basic Savings Bank Deposit Account replaced the earlier no-frills account as the vehicle of financial inclusion.
Read the full explanation →How often must KYC records of a high risk customer be updated under the Reserve Bank's KYC Direction?
- A.Once in two years
- B.Once in five years
- C.Once in eight years
- D.Once in ten years
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Banks classify customers as low, medium or high risk when the account is opened, on the basis of identity, social and financial standing and the nature of the expected business.
Read the full explanation →Deposits in a bank in India are insured by the DICGC up to what amount for each depositor in each bank?
- A.Rupees one lakh
- B.Rupees two lakh
- C.Rupees five lakh
- D.Rupees ten lakh
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The Deposit Insurance and Credit Guarantee Corporation, a wholly owned subsidiary of the Reserve Bank of India set up in 1978, insures deposits in commercial banks, regional rural banks, local area banks, payments and small finance banks and cooperative banks.
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