📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!

    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 student’s 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: • 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. • A declaration of the local address must be obtained within 30 days, after which the bank verifies it. • 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 ₹50,000 during the 30-day period. • 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.

    Practice Next
    More Accounts Questions

    Relevant for Exams:

    ask-question