πŸ“’ Too many exams? Don’t know which one suits you best? Book Your Free Expert πŸ‘‰ call Now!

  • google app store apple app store
  • βœ–

      Question

      What is the purpose of performing Due Diligence by banks

      under KYC norms?
      A To detect forgery Correct Answer Incorrect Answer
      B To assess credit risk Correct Answer Incorrect Answer
      C To avoid customer complaints Correct Answer Incorrect Answer
      D To calculate taxes Correct Answer Incorrect Answer
      E To reduce operational costs Correct Answer Incorrect Answer

      Solution

      Due diligence helps banks understand a customer's financial profile and intentions, allowing them to identify credit risks and prevent fraud. It’s a core step in a risk-based KYC process, especially for MSME borrowers where documentation may vary.

      Practice Next
      ask-question