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    Question

    The Reserve Bank of India advised banks to make the

    Know Your Customer (KYC) procedures mandatory while opening and operating the accounts. Under section 35A of which act has the RBI issued the KYC guidelines?
    A RBI Act, 1934 Correct Answer Incorrect Answer
    B Banking Regulation Act, 1949 Correct Answer Incorrect Answer
    C Negotiable Instruments Act, 1881 Correct Answer Incorrect Answer
    D Banking Regulation Act, 1935 Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    These guidelines are issued under Section 35A of the Banking Regulation Act, 1949 and Rule 9(1D) of Prevention of Money-Laundering (Maintenance of Records) Rules, 2005. Any contravention thereof or non-compliance shall attract penalties under Banking Regulation Act.

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