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    Question

    Under what circumstances must Reporting Entities (REs)

    obtain the Aadhaar number from an individual during the Customer Due Diligence (CDD) process?
    A When the individual is an Indian citizen applying for an account Correct Answer Incorrect Answer
    B When the individual is not a resident of India Correct Answer Incorrect Answer
    C When the individual seeks benefits or subsidies under a scheme notified under Section 7 of the Aadhaar Act, 2016 Correct Answer Incorrect Answer
    D When the individual refuses to provide any other identification document Correct Answer Incorrect Answer
    E When the individual wants to open a joint account with another party Correct Answer Incorrect Answer

    Solution

    As per the provisions of the Aadhaar Act, 2016, and RBI’s KYC Master Directions: • REs must obtain the Aadhaar number from individuals only when they seek benefits or subsidies under schemes specifically notified under Section 7 of the Aadhaar Act. • In other cases, Aadhaar is treated as an OVD (Officially Valid Document) and is not mandatory. • This ensures that Aadhaar is primarily used for the targeted delivery of government subsidies and benefits, while other forms of identification remain valid for general account opening or CDD purposes.

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