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    Question

    Which of the following best defines a Shell Bank under

    RBI KYC directions?
    A A bank with operations only in foreign exchange Correct Answer Incorrect Answer
    B A bank without a physical presence in any country Correct Answer Incorrect Answer
    C A cooperative bank with no deposit insurance Correct Answer Incorrect Answer
    D A bank operated through shell companies Correct Answer Incorrect Answer
    E A bank run only through online channels Correct Answer Incorrect Answer

    Solution

    As per RBI KYC norms, a Shell Bank is a financial institution that does not have a physical presence in any jurisdiction and is not affiliated to any regulated financial group. Indian banks are prohibited from dealing with such entities.

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