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    Question

    When a simplified customer due diligence (CDD) is

    carried out for opening accounts of foreign students, what is the maximum cap on foreign remittances permitted until the studentтАЩs local address is verified?
    A USD 500 Correct Answer Incorrect Answer
    B USD 1,000 Correct Answer Incorrect Answer
    C USD 5,000 Correct Answer Incorrect Answer
    D USD 2,500 Correct Answer Incorrect Answer
    E USD 3,500 Correct Answer Incorrect Answer

    Solution

    Under RBI guidelines for simplified CDD in case of foreign students: тАв A Non-Resident Ordinary (NRO) account may be opened on the basis of their passport, visa/immigration documents, a photograph, and a letter of admission from an Indian educational institution. тАв A declaration of the local address must be obtained within 30 days, after which the bank verifies it. тАв Until this verification is complete, the account is subject to certain restrictions: o Foreign remittances capped at USD 1,000 (or equivalent), and o A maximum aggregate credit cap of тВ╣50,000 during the 30-day period. тАв Students of Pakistani nationality require prior RBI approval to open such accounts. Thus, the cap on foreign remittances before local address verification is USD 1,000.

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