Question

    According to the RBI guidelines on customer

    identification, which of the following transaction scenarios mandates customer due diligence (CDD) for Regulated Entities (REs)?
    A When a walk-in customer conducts a transaction for less than ₹50,000 Correct Answer Incorrect Answer
    B When international money transfer operations are carried out for a person who is not an account holder of the RE Correct Answer Incorrect Answer
    C When the customer is an existing account holder, and no changes are made to their account information Correct Answer Incorrect Answer
    D When a customer performs multiple small transactions, none of which exceed ₹50,000 Correct Answer Incorrect Answer
    E When a customer provides self-declaration of their address without official verification Correct Answer Incorrect Answer

    Solution

    According to RBI regulations, customer due diligence (CDD) is required for international money transfers involving customers who are not account holders . This is to ensure proper verification of the transaction and customer identity, as international transactions are more vulnerable to money laundering and fraudulent activities. REs must ensure they have adequate documentation and verification before proceeding with such transactions.

    Practice Next
    More Financial Management Questions