Question

What is the purpose of performing Due Diligence by banks under KYC norms?

Q: Answer-What is the purpose of performing Due Diligence by banks under KYC norms?

Due diligence helps banks understand the nature and background of customers, including their financial standing and intent, helping assess potential credit or fraud risks. Its a key part of the risk-based KYC process.

A To detect forgery

B To assess credit risk

C To avoid customer complaints

D To calculate taxes

E To reduce operational costs

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What is the purpose of performing Due Diligence by banks under KYC norms?

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