Banking Assessment - 1

The correct answer is Passport, Election ID, and Driving Licence. These documents are commonly accepted as proofs of identity and address for individuals. They are widely recognized and issued by government authorities, making them reliable forms of identification. These documents contain personal information and a photograph, which helps in verifying the identity of an individual. Additionally, they also mention the address, which serves as proof of residence. Therefore, these documents are considered valid proofs of identity and address for individuals.

The correct answer is Photograph, Proof of Identity and Proof of address. This is because KYC (Know Your Customer) is a process used by financial institutions to verify the identity of their customers. To complete the KYC process, customers are usually required to provide a photograph, a proof of their identity (such as a passport or driver's license), and a proof of their address (such as a utility bill or bank statement). These documents help the financial institution ensure that the customer is who they claim to be and that their address is valid.

The main objective of following the KYC (Know Your Customer) process is to enable the bank to have positive identification of its relationship with the customer. This means that the bank wants to ensure that it knows who its customers are and can verify their identities. By doing so, the bank can mitigate the risk of fraud, money laundering, and other illegal activities. The KYC process involves collecting and verifying customer information, such as identification documents and proof of address, to establish a reliable and trustworthy relationship between the bank and the customer.

KYC stands for Know Your Customer. It is a framework implemented by banks to understand their customers and their financial activities in order to provide them with better services. This framework helps banks to gather information about their customers, such as their identity, address, employment details, and financial transactions. By having a comprehensive understanding of their customers, banks can assess the risk associated with them and ensure compliance with regulatory requirements. This enables banks to build trust, prevent fraud, and offer personalized services to their customers.

The correct answer is SMS or email because these are the most common and convenient methods used to confirm credit of remittances. SMS or email notifications can be sent instantly to inform the sender or recipient that the remittance has been successfully received and credited to the intended account. This allows for quick and efficient communication, ensuring that both parties are aware of the transaction status without the need for physical documents or waiting for postal delivery.

In the case of Real-Time Gross Settlement (RTGS), the remitting customer would receive an acknowledgement of the money credited to the beneficiary's account. This is because RTGS is a funds transfer system where transactions are processed and settled in real-time on a gross basis. As soon as the funds are credited to the beneficiary's account, an acknowledgement is sent to the remitting customer confirming the successful transfer. Therefore, the correct answer is "Yes".

The correct answer is "Know Your Customer." KYC refers to the process of verifying the identity and financial status of customers before providing them with services. It is a legal requirement for businesses to prevent money laundering, fraud, and other illegal activities.

The correct answer is RBI (Reserve Bank of India) because the Reserve Bank of India is the central banking institution in India and it is responsible for regulating and supervising all banks in the country. As part of its regulatory role, the RBI advises all banks to follow the KYC (Know Your Customer) guidelines, which are aimed at preventing money laundering, terrorist financing, and other illegal activities in the banking system.

KYC (Know Your Customer) is carried out at various stages to verify the identity and address of the customer. These stages include opening an account, opening a locker, making changes in address or signature, and when extra information is required by the bank. This helps the bank ensure that the customer's information is up to date and accurate, reducing the risk of fraud and ensuring compliance with regulatory requirements.

The correct answer is Financial Intelligence Unit – India. The abbreviation "FIU-IND" refers to the Financial Intelligence Unit of India. This unit is responsible for gathering, analyzing, and disseminating financial intelligence to combat money laundering, terrorist financing, and other financial crimes in India.

NEFT stands for National Electronic Funds Transfer. It is a nation-wide payment system that allows individuals and businesses to transfer funds from one bank account to another. It enables one-to-one funds transfer, ensuring a secure and efficient method of payment. NEFT eliminates the need for physical checks or cash transactions, making it convenient and accessible for users across the country.

Individuals, firms, or corporates maintaining accounts with a bank branch can transfer funds using NEFT. NEFT (National Electronic Funds Transfer) is a payment system that allows individuals or entities to electronically transfer funds from one bank account to another. It is a convenient and secure method of transferring money, and it is widely used by individuals, businesses, and organizations to make payments or settle transactions. Therefore, the statement "Individuals, firms or corporates maintaining accounts with a bank branch can transfer funds using NEFT" is true.

According to the given statement, customers can open small deposit accounts by being introduced by an existing fully KYC compliant account and having their address and photograph attested by that person. This implies that the existing account holder can vouch for the identity and address of the new customer, allowing them to open a small deposit account. Therefore, the statement is true.

The correct answer is "Indian Financial System Code". The IFSC is a unique code assigned to each bank branch in India by the Reserve Bank of India. It is used to identify the bank and branch in electronic funds transfer and other online transactions. The IFSC code consists of 11 characters, including a combination of alphabets and numbers, and helps in ensuring accurate and efficient transfer of funds between different banks and branches in India.

The statement is true. Small deposit accounts are characterized by a balance that does not exceed Rs. 50,000 and an annual turnover that does not exceed Rs. 1,00,000. This means that these accounts are designed for individuals or businesses with lower financial activity and lower amounts of money.

STR stands for Suspicious Transaction Record. This term is commonly used in the context of financial transactions, particularly in the field of anti-money laundering (AML) and counter-terrorism financing (CTF). A Suspicious Transaction Record refers to a document or record that highlights a transaction or activity that raises suspicions of potential illegal or illicit activities, such as money laundering or terrorist financing. These records are typically reported to the relevant authorities for further investigation and monitoring.

The statement is true because both the Pan card and the ID of a reputed company can be used as documents for identity verification. The Pan card is a government-issued document that serves as proof of identity and is commonly used in India. Similarly, the ID of a reputed company, such as an employee ID or a company-issued identification card, can also be used to establish the identity of an individual. Therefore, both these documents are valid forms of identity proof for individuals.

In order for a bank branch to be part of the NEFT funds transfer network, it needs to be NEFT enabled. This means that the branch has the necessary infrastructure and technology in place to facilitate NEFT transactions. NEFT (National Electronic Funds Transfer) is a popular electronic funds transfer system in India, allowing individuals and businesses to transfer funds between different bank accounts. By being NEFT enabled, a bank branch can offer this service to its customers, allowing them to conveniently transfer money electronically.

Electricity bills and ration cards are commonly used as documents to establish the address of individuals. Electricity bills provide proof of residence by showing the individual's name and address, while ration cards also contain the individual's address information. These documents are often required for various purposes such as opening a bank account, applying for government schemes, or obtaining a driver's license. They serve as reliable evidence of an individual's residential address.

Being asked for KYC documents does not imply that the customers are suspected of money laundering. KYC (Know Your Customer) is a standard banking practice that requires customers to provide identification and other relevant documents to establish their identity and ensure compliance with anti-money laundering regulations. It is a preventive measure to mitigate the risk of money laundering activities, but it does not automatically imply suspicion of money laundering.

The correct answer is Rs.50,000/-. This means that the maximum amount per transaction for cash-based remittances and remittances to Nepal is limited to Rs.50,000/-.

NEFT operates in hourly batches, meaning that transactions are processed and settled in batches every hour. From 8 am to 7 pm on weekdays, there are twelve settlements, indicating that twelve batches of transactions are processed and settled during this time. On Saturdays, from 8 am to 1 pm, there are six settlements, meaning that six batches of transactions are processed and settled during this time.

In the case of NEFT (National Electronic Funds Transfer), the remitter does not need to send a physical cheque or demand draft to the beneficiary. NEFT is an electronic payment system that allows individuals to transfer funds from one bank account to another. The process is entirely digital, eliminating the need for physical documents. Therefore, the statement is true.

The correct answer is 2 hours. RTGS stands for Real Time Gross Settlement, which is a system used for transferring funds from one bank account to another in real-time. Unlike other payment systems that may take longer to process, RTGS ensures that the funds are transferred and settled within 2 hours. This makes RTGS a faster and more efficient method for transferring large amounts of money between accounts.

CTR stands for Cash Transaction Record. This refers to a document or record that provides details of cash transactions that have taken place. It includes information such as the date, amount, and purpose of the transaction. It is important to maintain accurate CTRs for financial and auditing purposes.