KYC Officers Master Key

MODULE 2
1
Who is a “Non face to face” customer for bank?
A customer with whom the Branch or any branch official has no direct interaction at the
time of opening of account.
A customer entering branch premises with face covered with mask.
When a customer is a legal person.
A customer who executes all his transactions through Net-Banking and rarely visits his
home branch.
Item 2
2
Which of the following documents are not required by the bank for opening an account
of an unincorporated association or a body of individuals?
Registration certificate and Trust deed
Documents relating to beneficial owner, managers, officers or employees, as the case

may be, holding an attorney to transact on its behalf.
Permanent Account Number or Form No. 60 of the unincorporated association or a

body of individuals.
Resolution of the managing body of such association or body of individuals. Power of

attorney granted to transact on its behalf.
Item 3
An account becomes KYC Non-Compliant/ KYC discrepant accounts in certain

circumstances? Which of the following statement is NOT correct in this regard?
Small accounts where OVD is not provided within a period of 12 months, subject to
relaxations provided by RBI/ Govt. of India.
Small accounts where OVD is not provided within a period of 24 months, subject to
relaxations provided by RBI/ Govt. of India.
Accounts where KYC Updation is overdue.
Accounts opened with Deemed OVD but updated OVD is not provided within 3 months.
Item 4
Which of the following statements is NOT correct regarding the requirement of the
undertaking of customer due diligence (CDD) by the financial institutions?
Branches/ offices will undertake CDD while there is a suspicion of money laundering or
financing of terrorism, regardless of any exemptions or thresholds.
Branches/ offices will undertake CDD whenever they have doubts about the veracity or
adequacy of previously obtained customer identification data.
Branches/ offices will undertake CDD while establishing business relationship.
There is no need of undertaking CDD measures while carrying out occasional

transactions, within the applicable designated threshold, for the account.
Item 5
An account becomes KYC Non-Compliant/ KYC discrepant, and the bank takes steps to
make such accounts KYC Compliant. However, if the customer is not forthcoming to
provide the necessary documents and/or information. What steps bank will take?
Bank will immediately close the account.
Bank will convert the account to Small Account.
Bank will take the steps towards phased imposition of partial / full freeze and eventual
closure of the account.
Bank will impose and recover a penalty on the customer till the account become KYC
compliant.
Item 6
6
As per the RBI guidelines, what is the Periodicity of review of Customer Risk
Categorisation (CRC)?
Review of risk categorization of customers should be carried out only if there is a

change in a customer’s profile.
Review of risk categorization of customers should be carried out at a periodicity of not

less than once in three months.

less than once in six months.

less than once in a year.
Item 7
For opening an account in the name of a sole proprietary firm, CDD of the individual
(proprietor) is carried out. In addition to this, the bank should obtain two documents or
the equivalent documents thereof as proof of business/ activity in the name of the
proprietary firm. Which of the following documents, in the name of the firm, will serve
the purpose?
Registration certificate in the name of the firm.
Certificate/ licence issued by the municipal authorities under Shop and Establishment
Act in the name of the firm.
Sales and income tax returns or CST/VAT/ GST certificate (provisional/final) in the
name of the firm.
All the above

Item 8
8
Which of the following is not true regarding the Video-based Customer Identification
Process (V-CIP)?
Video based CIP will be treated as Non face-to-face CIP.
Video CIP is an alternate method of customer identification with facial recognition and
customer due diligence by an authorised official of the Reporting Entity.
Video CIP is done by undertaking seamless, secure, live, informed consent based
audio-visual interaction with the customer to obtain identification information required for
CDD purpose,
The official of the Bank performing the V-CIP shall record video as well as capture
photograph of the customer present for identification.
9
Which statement is NOT correct in respect of obtention of Aadhar number for CDD of an
Individual?
Banks can obtain the Aadhaar number from a customer where he is desirous of
receiving any benefit or subsidy in his account (DBT).
Banks can obtain the Aadhaar number from a customer where he decides to submit his
Aadhaar number voluntarily to a bank.
Banks must obtain the Aadhaar number/card from a customer whenever he is desirous
of opening an account with a Bank.
All the above statements are correct.

Item 10
10
Ms C has instructed to transfer her account from branch 'A' to branch 'B'. The account is
fully KYC compliant account. The officer at branch 'B' has asked her to submit the
identity documents afresh, which she resisted.
What are the instructions regarding this?
It is the discretion of the branch 'B' to accept or not, the KYC verification already done
for the concerned account by 'A' branch.
If KYC verification has already been done for the concerned account and the same is
not due for periodic updation, the KYC verification done by 'A' branch will be valid for
transfer of account to 'B' branch only if CIF is also being transferred.
If KYC verification has already been done for the concerned account and the same is
not due for periodic updation, the KYC verification done by 'A' branch will be valid for
transfer of account to 'B' branch.
Even if KYC verification has already been done for an account, the KYC verification
done by 'A' branch will not be valid for transfer of account to 'B' branch.
Item 11
11
The Customer Acceptance Policy (CAP) section of the Bank’s KYC Policy, lays down
the criteria for acceptance of a person as a customer of the bank. Which of the following
statement is not correct in respect of CAP?
It should be ensured that identity of customer does not match with any person or entity
whose name appears in the sanction’s lists circulated by Reserve Bank of India.
No account is opened in anonymous or fictitious/ benami name.
No account is opened where the Branch/ Business unit is unable to apply appropriate
CDD measures, either due to non-cooperation of the customer or non-reliability of the
documents/ information furnished by the customer.
An account may be opened in anonymous or fictitious/ benami name but it must be

ensured that identity of customer does not match with any person or entity whose name
appears in the sanction’s lists circulated by RBI.
Item 12
12
Which of the following statements regarding Customer Identification Procedures (CIP) is
correct?
Customer identification requires identifying the customer and verifying his/ her identity
by using reliable, independent source documents, data, or information.
The first requirement of Customer Identification Procedures (CIP) to be satisfied is that
a prospective customer is who he/ she claims to be.
Customer identification means undertaking client due diligence measures while

commencing an account-based relationship including identifying and verifying the
customer and the beneficial owner.
All statements are correct.

Item 13
13

correct?



Item 13. Selected.
14
Customer risk categorization (CRC) is carried out by AML-CFT Department at pre-

defined periodicity. Which of the following option regarding periodicity is not correct?
CRC is done, daily for the incremental accounts/customers.
CRC is done weekly for the incremental accounts/customers.
CRC is done at half-yearly intervals typically as on 31st March and 30th September
every year or in between if the need arises.
Review of customer risk categorization (CRC) of customers should be carried out at a
periodicity of not less than once in six months.
Item 15
15
Can the Mandatory and other ‘Optional’ information collected from the customer be
used for cross-selling or any other purpose?
Though such information collected from the customer is to be treated as confidential

and details thereof are cannot be divulged but it can be used for cross-selling of our
groups' products.
No, such information collected from the customer is to be treated as confidential and
details thereof are can not to be divulged for cross selling or any other purpose.
Such information collected from the customer is the property of the bank, hence can be
used for cross selling or any other purpose.
Yes, any information collected from the customer may be used for cross selling.
Item 16
16

groups' products.
Item 16. Selected.
17

groups' products.
Item 16
18
Which one of the following is not an Officially Valid Document” (OVD)?
Driving Licence
Passport
Aadhaar number/ card
Proof of possession of Aadhaar number

Item 19
19
The Customer Acceptance Policy (CAP) section of the Bank’s Policy & Procedure
Guidelines on KYC/ AML/ CFT Measures lays down the criteria for acceptance of a
person as customer of the bank. Which of the following statement is not correct in
respect of CAP?
Branches/ Offices shall apply the CDD procedure at the CIF level.
If an existing KYC compliant customer of our Bank desires to open another account with
another Branch, fresh Customer Due Diligence (CDD) exercise has to be undertaken.
Accounts of persons having relationships with banned entities such as individual

terrorists or terrorist organizations etc. are not to be opened.
Customer Due Diligence (CDD) Procedure is followed for all the joint account holders,
while opening a joint account and also for Guarantors in case of loan accounts.
Item 20
20
Which of the following documents are not required by the bank for opening an account
of a Trust?
Registration certificate and Trust deed
Memorandum and Articles of Association
Documents relating to beneficial owner, managers, officers or employees, as the case

may be, holding an attorney to transact on its behalf.
Permanent Account Number or Form No.60 of the trust

Item 21
21
Enhanced Due Diligence (EDD) is required to be exercised in respect of what type of

customers-
Politically exposed Persons (PEPs)
Relatives and associates of PEPs
All customers categorized under high risk
All of the Above

Item 22
22
Where the OVD furnished by the customer does not have an updated address, the bank
can accept a utility bill, as deemed OVD, for the limited purpose of proof of address.
Which of the following option is correct in respect of a Utility Bill?
Utility bill which is not more than three months old of any service provider (electricity,
telephone, post-paid mobile phone, piped gas, water bill) can be accepted.
Utility bill which is not more than one month old of any service provider (electricity,
Utility bill which is not more than two months old of any service provider (electricity,
Utility bill which is not more than one year old of any service provider (electricity,
Item 23
23
An account which has been opened using Deemed OVD, for the limited purpose of
current address, within what period the customer will provide the OVD updated with
current address?
The customer shall submit OVD updated with current address within a period of three
months of submitting the deemed OVD.
The customer shall submit OVD updated with current address within a period of six
The customer shall submit OVD updated with current address within a period of nine
The customer shall submit OVD updated with current address within a period of twelve
Item 24
24
What is NOT true regarding KYC/AML/CFT guidelines issued by RBI?
It prevents banks/FIs from lending, funds to borrowers who can not provide proper KYC
documents.
It prevents banks/FIs from being used, intentionally or unintentionally, by criminal

elements for money laundering or terrorist financing activities.
RBI has mandated the banks for having a board-approved KYC policy.
The KYC policy should have four key elements.

Item 25
25
In which of the following instances, Customer Due Diligence (CDD) Procedure in the
case of an Individuals is required?
While establishing account-based relationship with an individual.
While establishing account-based relationship with a beneficial owner/ authorized

signatory or the power of attorney holder related to any legal entity.
While establishing account-based relationship with an authorized signatory or the power

of attorney holder related to any legal entity.
All the statements are correct.

Item 26
26
Who should ensure compliance with the KYC guidelines at the time of on-boarding of a
customer?
The Service manager should ensure that all aspects of KYC guidelines are complied
with.
The Branch manager should ensure that all aspects of KYC guidelines are complied
with.
Business Correspondents (BCs) & Business Facilitators (BFs) who open the account,
should ensure compliance with the KYC guidelines.
The officer-in-charge vested with the authority to open the account, should ensure
compliance with the KYC guidelines.
Item 27
27

NOT correct?
Branches shall undertake Customer Identification while selling of third-party products as

agents, selling our own products, payment of dues of credit cards/ sale and reloading of
prepaid/ travel cards and any other product for more than Rs. 500,000/-
Branches shall undertake Customer Identification while selling of third-party products as

agents, selling our own products, payment of dues of credit cards/ sale and reloading of
prepaid/ travel cards and any other product for more than Rs. 50,000/-
Branches shall undertake Customer Identification while when the Bank has reason to
believe that a customer (account based or walk-in) is intentionally structuring a
transaction into a series of transactions below the threshold of Rs 50000/-.
Branches shall undertake Customer Identification while carrying out transactions for a
non-account-based customer, that is a walk-in customer, where the amount involved is
equal to or exceeds Rs 50000/-, whether conducted as a single transaction or several
transactions that appear to be connected.
Item 28
28
Which of the following documents are obtained for opening accounts of juridical persons
other than Company, Partnership or Trust accounts, such as societies, universities, and
local bodies like village panchayats?
Such documents as may be required by the RE to establish the legal existence of such
an entity/juridical person.
Documents for carrying out Customer Due Diligence (CDD) of the individual, holding an
attorney to transact on its behalf.
Document showing name of the person authorised to act on behalf of the entity.
All are correct

Item 29
29
“Where no natural person is identified in case the client is a Company / Partnership firm
/ Unincorporated Association or Body of Individuals, Who will be treated as ‘Beneficial
Owner’ as per PML Amendment Rules 2013 ?
The relevant natural person who holds the position of senior managing official.
Any one of the signatories to the account.
All of the signatories to the account.
None of the Above.

Item 30
30
If the branch has doubt about authenticity / veracity or the adequacy of the previously obtained
customer identification data, what is the periodicity for review of profile of Customer?
1) What is V-CIP in respect of KYC?
Video based Customer Identification procedure
2) A small account which has been opened without obtaining OVD when it will become
KYC Non-Compliant/ KYC discrepant accounts?
The account shall remain operational initially for a period of twelve months…….
3) What is Partial Freezing of an account that has become KYC Non-Compliant/ KYC
discrepant?
Restricting debit in the account through all channels but allowing credits
4) For opening an account in the name of a sole proprietary firm, CDD of the individual
proprietary firm. Which of the following documents will NOT be accepted for the purpose,
in the name of the firm?
Duly notarized, lease or rent agreement.
5) Which of the following documents are not required by the bank for opening an account of
a Partnership Firm?
Certificate of incorporation, memorandum and articles of association.
6) Which of the following statement is correct regarding the identification of a

beneficial owner, where the customer is a trust?
15% OR MORE
7) If a customer, who has submitted Aadhar number voluntarily, wants to provide current
address different from the address contained in Aadhaar records, which of the following
document will be obtained as proof of current address?
Simply a self declaration
8) Which of the following categories of accounts are NOT exempted from obtention of
details of Beneficial Owners?
Partnership firms or LLPs
9) Branch AB Park has received a request for opening an account in the name of a
Partnership firm, the officer in the branch has identified that all the three partners are
beneficial owners. How many CIFs are required to be created while opening the account
in the name of that Partnership firm?
Four
10) An account becomes KYC Non-Compliant/ KYC discrepant accounts in certain

circumstances? Which of the following statement is NOT correct in this regard?
The Voter's Identity Card issued by the Election Commission of India,
Letter issued by the National Population Register containing details of name and
address.
Job card issued by NREGA duly signed by an officer of the State Government.
Landline Telephone Bill

Item 3
Which one of the following options is not the purpose of name screening?
To avoid the risk of financing an entity which is having a dubious reputation of non-
payment to its creditors.
Which of the following statement is correct regarding identification of beneficial

owner in case of a company?
Beneficial Owner has Controlling ownership interest ownership of/entitlement to

more than 25 per cent of the shares or capital or profits of the company.
“Control” includes the right to appoint majority of the directors or to control the
management or policy decisions including by virtue of their shareholding or
management rights or shareholders agreements or voting agreements.
Where the customer or the owner of the controlling interest is a company listed on
a stock exchange, or is a subsidiary of such a company, it is not necessary to
identify and verify the identity of any shareholder or beneficial owner of such
companies.
All the statements are correct.

Item 6
For Risk management, Bank has adopted a _____________as per RBI Guidelines?
Customer Based Approach
Risk Based Approach
KYC Based Approach
Application Based Approach

Item 7
Which of the following documents are required to be obtained as Customer Due
Diligence measures for opening an account in the name of a sole proprietary firm?
Any prescribed document in the name of the proprietorship firm only to be

obtained for undertaking CDD of the firm.
Any document in the name of the proprietorship firm only to be obtained for
undertaking CDD of the firm.
Prescribed documents for undertaking CDD of an individual to be obtained in the

name of the proprietor as well as two documents or the equivalent e-documents
thereof as proof of business/ activity in the name of the proprietary firm.
Prescribed documents for undertaking CDD of an individual to be obtained only in

the name of the proprietor.
Item 8
Which of the following statement is correct regarding the identification of a

beneficial owner, where the customer is a trust?
Where the customer is a trust, the identification of beneficial owner(s) shall include
identification of the author of the trust, the trustee, the beneficiaries with 25% or
more interest in the trust and any other natural person exercising ultimate effective
control over the trust through a chain of control or ownership.
identification of the author of the trust, the trustee, the beneficiaries with more
than 15% interest in the trust and any other natural person exercising ultimate
effective control over the trust through a chain of control or ownership.
identification of the author of the trust, the trustee, the beneficiaries with more
than 25% interest in the trust and any other natural person exercising ultimate
effective control over the trust through a chain of control or ownership.
identification of the author of the trust, the trustee, the beneficiaries with 15% or
more interest in the trust and any other natural person exercising ultimate effective
control over the trust through a chain of control or ownership.
Item 9
While opening an account in the name of a sole proprietary firm in addition to CDD
of the individual (proprietor) two documents or the equivalent documents thereof
as a proof of business/ activity in the name of the proprietary firm shall also be
obtained. In cases where it is not possible for the firm to furnish two such
documents, can branch open the account with obtaining one document only?
Branch may, at their discretion, accept only one document in the name of the firm
as proof of business/activity subject to ‘Contact Point Verification.
Branch , at the discretion of branch manager, may accept only one document as
proof of business/activity.
Branch has no discretion in this regard, it has to obtain at least two documents or
proprietary firm.
None of the options is correct.

Item 13
As per RBI Guidelines on dealing in Virtual Currencies (VC) in India, which of the
following statement is correct as per Customer Acceptance Policy (CAP)?
As per RBI Guidelines, Banks are allowed to deal in few selective Virtual Currencies
(VC) or provide services for facilitating any person or entity in dealing with or
settling VCs.
After liberalisation Banks are allowed to deal in any currency including Virtual
Currencies (VC).
As per RBI Guidelines, Bank shall not deal in Virtual Currencies (VC) or provide
services for facilitating any person or entity in dealing with or settling VCs.
As per RBI Guidelines, Bank shall not deal in Virtual Currencies (VC) but can provide
services for facilitating any person or entity in dealing with or settling VCs.
Item 14
Branch AB Park has received a request for opening an account in the name of a
Partnership firm, the officer in the branch has identified that all the three partners
are beneficial owners. How many CIFs are required to be created while opening the
account in the name of that Partnership firm?
Three
Two
One
Four
Item 15
The Customer Acceptance Policy (CAP) section of the Bank’s KYC Policy, lays down
the criteria for acceptance of a person as a customer of the bank. Which of the
following statement is not correct in respect of CAP?
It should be ensured that identity of customer does not match with any person or
entity whose name appears in the sanction’s lists circulated by Reserve Bank of
India.
No account is opened in anonymous or fictitious/ benami name.
An account may be opened in anonymous or fictitious/ benami name but it must be

ensured that identity of customer does not match with any person or entity whose
name appears in the sanction’s lists circulated by RBI.
No account is opened where the Branch/ Business unit is unable to apply

appropriate CDD measures, either due to non-cooperation of the customer or non-
reliability of the documents/ information furnished by the customer.
Item 16
Which of the following statements is NOT correct regarding Unique Customer

Identification Code (UCIC) ?
A CIF is the Unique Identification Code and a customer should not be allotted more
than one CIF.
All the accounts of the same customer are tagged to one CIF.
While entering into a new relationship with individual customers and the existing
customers in our Bank, Customer Identification File (CIF) shall be allotted.
It is also required to create UCIC for all walk-in/occasional customers.

Item 17
Which of the following categories of accounts are NOT exempted from obtention of
details of Beneficial Owners?
Public Sector Undertakings (State/Central Govt.)
Accounts of Banks
Partnership firms or LLPs
Company listed on a stock exchange,

Item 18
What is Partial Freezing of an account that has become KYC Non-Compliant/ KYC
discrepant?
Partial Freeze means restricting all transactions (debits and credits) in the account
through all channels but allowing debits raised by revenue departments.
Partial Freeze means restricting credits in the account through all channels but
allowing debits.
Partial Freeze means restricting debits in the account through all channels but
allowing credits.
Partial Freeze means restricting transactions in the account through all channels.
Item 19
Customer risk categorization (CRC) is carried out by AML-CFT Department at pre-

defined periodicity. Which of the following option regarding periodicity is not
correct?
Review of customer risk categorization (CRC) of customers should be carried out at

a periodicity of not less than once in six months.
CRC is done weekly for the incremental accounts/customers.

CRC is done, daily for the incremental accounts/customers.
CRC is done at half-yearly intervals typically as on 31st March and 30th September
every year or in between if the need arises.
Item 20
Which of the following is NOT one of the key elements of the KYC/AML/CFT Policy of
the Bank?
Risk Management
Customer Identification Procedures
Customer Maintenance
Customer Acceptance Policy

Item 21
If the branch has doubt about authenticity / veracity or the adequacy of the
previously obtained customer identification data, what is the periodicity for review
of profile of Customer?
Every 8 years for Low Risk customers
Every 5 years for Medium Risk customers
Whenever the branch has doubt about authenticity / veracity or the adequacy of
the previously obtained customer identification data.
Every 2 years for High Risk customers

Item 22
If a customer, who has submitted Aadhar number voluntarily, wants to provide
current address different from the address contained in Aadhaar records, which of
the following document will be obtained as proof of current address?
Letter from employer confirming his current address.
Identity card issued by the employer which is a listed company.
Simply a self-declaration regarding current address may be obtained.
Rent deed/ agreement duly executed with the landlord.

Item 25
Item 22
Bank shall take steps to make KYC non-compliant accounts KYC Compliant first.
However, if the customer is not forthcoming to provide the necessary documents
and/or information, Bank will take the steps towards phased imposition of partial /
full freeze and eventual closure of the account. Who is the authority to permit
closure of such accounts?
The competent authority to permit closure of such accounts shall be the Branch
Head, not below the rank of Chief Manager in Senior Management Grade. In all
other cases, any Chief Manager of the R.B.O shall be the competent authority to
permit closure of such accounts.
The competent authority to permit closure of such accounts shall be the General
Manager (Network), to permit closure of such accounts.
Head of any scale.
Head, not below the rank of Assistant General Manager. In all other cases, Regional
Manager of the R.B.O shall be the competent authority to permit closure of such
accounts.
Item 26
The KYC policy includes four key elements. Which of the following is the correct set
of these four elements?
Customer Acceptance Policy, Risk Categorisation, Customer Identification

Procedures (CIP), Monitoring of Transactions.
Customer Acceptance Policy, Risk Management, Customer Due Diligence,

Monitoring of Transactions.
Customer Acceptance Policy, Risk Categorisation, Customer Due Diligence,

Monitoring of Transactions.
Customer Acceptance Policy, Risk Management, Customer Identification Procedures

(CIP), Monitoring of Transactions.
Item 28
Branches shall undertake Customer Identification while carrying out any

international money transfer operations. Which of the following statement is most
appropriate in this regard?

international money transfer operations for a person who is not an account holder
and remittance amount is of the value of INR 20,000.00 and above.

international money transfer operations for a person who is not an account holder,
irrespective of amount.

and remittance amount is of the value of INR 50,000.00 and above.

and remittance amount is of the value of above INR 20,000.00.
Item 29
What is the major risk of non-compliance with the KYC Policy?
Customer Risk
Supervisory Risk
Compliance and Legal Risk.
None of the above

Item 30
In which of the following circumstances an account becomes KYC Non-Compliant/ KYC

discrepant?
All of the above
Permanent Account Number (PAN)
Driving Licence
Passport
Proof of possession of Aadhaar number

Who is a “Non face to face” customer for bank?
When a customer is a legal person.
A customer who executes all his transactions through Net-Banking and rarely visits his
home branch.
A customer entering branch premises with face covered with mask.
A small account which has been opened without obtaining OVD when it will become
KYC Non-Compliant/ KYC discrepant accounts?
The account shall remain operational initially for a period of six months which can be
extended for a further period of six months, provided the account holder applies and
furnishes evidence of having applied for any of the OVDs during the first six months of
the opening of the said account.
The account shall remain operational initially for a period of nine months which can be
extended for a further period of nine months, provided the account holder applies and
furnishes evidence of having applied for any of the OVDs during the first nine months of
the opening of the said account.
The account shall remain operational initially for a period of three months which can be
extended for a further period of three months, provided the account holder applies and
furnishes evidence of having applied for any of the OVDs during the first three months
of the opening of the said account.
The account shall remain operational initially for a period of twelve months which can be
extended for a further period of twelve months, provided the account holder applies and
furnishes evidence of having applied for any of the OVDs during the first twelve months
of the opening of the said account.
correct?


For opening an account in the name of a sole proprietary firm, CDD of the individual
proprietary firm. Which of the following documents will NOT be accepted for the
purpose, in the name of the firm?
CST/VAT/ GST certificate (provisional/final) in the name of the firm.
IEC (Importer Exporter Code) issued to the proprietary concern by the office of DGFT or
Licence/certificate of practice issued in the name of the proprietary concern by any
professional body incorporated under a statute.
Utility bills such as electricity, water, landline telephone bills, etc in the name of the firm.
Duly notarised, Lease or Rent agreement in the name of the firm.
Which of the following statement is correct regarding identification of beneficial owner

based on Controlling ownership interest in case of a company?
Controlling ownership interest means ownership of/entitlement to 51 per cent or more of

the shares or capital or profits of the company.
Controlling ownership interest means ownership of/entitlement to more than 51 per cent
of the shares or capital or profits of the company.
Controlling ownership interest means ownership of/ entitlement to more than 25 per
cent of the shares or capital or profits of the company.
Controlling ownership interest means ownership of/entitlement to 25 per cent or more of

the shares or capital or profits of the company.
If, during Name Screening process, the ID of the applicant/customer is different from the
ID of the corresponding person in the negative lists, then the name and other identifiers
of the applicant/ customer are matched with those of the corresponding person given in
the
negative lists. In case the name and at least ____________ other identifiers match, it is
considered a
positive match.
one
two
four
three
In which of the following situations Customer Identification Procedure (CIP) is not

required to be carried out, by the Branches/offices?
When the Branch/ Office doubts the authenticity or adequacy of the customer
identification data it has obtained.
While establishing an account-based relationship.

While effecting remittance for a non-customer who has approached for remitting INR
20000 through NEFT in cash.
Carrying out any international money transfer operations for a person who is not an
account holder.
Branches shall undertake Customer Identification while carrying out any international
money transfer operations. Which of the following statement is most appropriate in this
regard?
money transfer operations for a person who is not an account holder, irrespective of
amount.
money transfer operations for a person who is not an account holder and remittance
amount is of the value of INR 50,000.00 and above.
amount is of the value of INR 20,000.00 and above.
amount is of the value of above INR 20,000.00.
A well-designed KYC Policy complements the AML/ CFT systems deployed in a bank.
Which one of the of the following is not true/ correct?
It provides the AML/ CFT cell with an accurate profile of the customers enabling a
meaningful monitoring of transaction patterns and better decision-making regarding
reporting of a suspicious transaction.
It prevents the bank from lending to the persons with poor financials and saves the
precious capital of bank.
It prevents on-boarding of persons who carry a dubious background. and who may be a
potential threat to the institution from the perspective of money laundering and financing
of terrorism.
It helps in better understanding of customers and analysing the risk that they pose to
the Bank and society at large.
In case, during Name Screening process, particulars of any customer match beyond
doubt, with the particulars of designated individuals/ entities, the branch through its
controllers/ AML/ CFT Department shall immediately,___________ inform full
particulars to the Joint Secretary (CTCR), Ministry of Home Affairs, GOI.
not later than 36 hours
The Customer Acceptance Policy (CAP) section of the Bank’s Policy & Procedure
Guidelines on KYC/ AML/ CFT Measures lays down the criteria for acceptance of a
person as customer of the bank. Which of the following statement is not correct in
respect of CAP?
No transaction or opening of account is undertaken without following the CDD

procedure.
It should be ensured that identity of customer does not match with any person or entity
whose name appears in the sanction’s lists circulated by Reserve Bank of India.
Customer Due Diligence (CDD) Procedure is to be followed for borrowers as well as for
Guarantors in case of loan accounts.
It is sufficient to follow Customer Due Diligence (CDD) Procedure in respect of the first
account holder only in case of joint account holders, while opening a joint account.
MODULE 1
Sunshine Kids' an NPO, has been maintaining a savings bank account with your
branch. A foreign remittance received by NPO is not approved by FCRA. The
management of the NPO is requesting to credit the amount without insisting for
FCRA approval. The service manager brought this issue to the notice of the branch
head who in turn decided to report this instance as Suspicious Transactions /
Suspicious Activity through a Suspicious Transaction Report/Suspicious Activity
Report. What is the category of source of such an STR/SAR?
PC- Complaint received from public
Customer Verification (CV)-Detected during customer acceptance, identification or

verification
Employee Initiated (EI)-Employee raised alert- Unapproved inward remittance in

account of an NPO
Risk Management System (RM)

Item 2
In case a customer offers different identifications on different occasions with an

apparent attempt to avoid linkage of multiple transactions, and the frontline staff
reports this incident to you, in the capacity of a branch head. You should report this
incident through a Suspicious Transaction Report (STR)/ Suspicious Activity Report
(SAR) as a CDD measure. The source of this type of offline Red Flag Indicator (RFI)/
alert, will fall under ________ Category.
Media Reports (MR)-Adverse Media Reports about customer, being investigated for
criminal offences

verification
Business Associates (BA)- Information received from other institutions, subsidiaries
or business associates
Employee Initiated (EI)-Employee raised alert- Customer offers different

identifications on different occasions
Item 3
Which of the following is NOT a category of source of Subjective STR (Suspicious

Transaction Report)/ SAR (Suspicious Activity Report)?
Public complaint (PC)- Complaint received from public

verification
Employee Initiated (EI)-Employee raised alert- transaction has no economic

rationale
Watch List (WL) related: Matching the customer details by system, with the specified
negative lists such as UN list, OFAC etc.
Item 4
Who is the "Designated Director" as per the 'AML/CFT STRUCTURE in our BANK' ?
MD (AML-CFT)
G.M. (AML-CFT)
MD (R, IT & S)
MD (GB &S)
Item 5
Mr X opened an account but the letter of thanks as well as customised cheque book
got returned with the remark "Customer not staying at the provided address'. The
branch officials also confirmed the fact by visiting in person and decided to report
this through a Suspicious Transaction Report (STR)/ Suspicious Activity Report (SAR).
What is the category of source of such an offline Red Flag Indicator (RFI)/ alert ?
Media Reports (MR)-Adverse Media Reports about customer
Employee Initiated (EI)-Employee raised alert

verification
Public Complaint (PC)-Complaint received from public

Item 6
Which of the following is NOT a category of source of Subjective STR (Suspicious

Transaction Report)/ SAR (Suspicious Activity Report)?
Employee Initiated (EI)-Employee raised alert- Customer could not explain source of
funds
criminal offences

verification
Item 7
Mr S did not open account after being informed about KYC requirements, the
dealing officer has sufficient reasons to believe that this activity should be reported
as a suspected transaction and a Suspicious Transaction Report (STR)/ Suspicious
Activity Report (SAR) must be raised. The source of such an offline Red Flag
Indicator/ alert falls under______category?

verification

Item 8
How many types of STRs are there?
Fresh STRs and Stale STRs
System Generated STRs and Subjective STRs
Genuine STRs & False STRs
Confirmed STRs and Un-confirmed STRs

Item 9
Mr A has deposited Rupees forty nine thousand in cash in ten different accounts on
the same day and then transferred the so deposited amount from all the ten
accounts to his own personal account. Then he issued a cheque for effecting an
RTGS in favour of an educational institute. Mr A stated that he wanted to pay the
money to the institute for undertaking some course, while replying to query raised
by the service manager. The service manager is not convinced as the transactions
are unnecessarily complex for the stated purpose. He reported the incident to the
branch head. The branch head decides to report it as a Suspicious Transaction
/Suspicious Activity through a Suspicious Transaction Report/Suspicious Activity
Report. What is the category of source of such an STR/SAR?
TF offences

verification

Employee Initiated (EI)-Employee raised alert- transaction is unnecessarily complex

Item 10
A customer, owning a small tea shop near your branch, entered the branch to
deposit a cheque of large amount in his account. The cheque had been purportedly
drawn by Coal India Ltd. Customer is not able to provide sufficient clarification to
the queries of the front-line staff. The lady associate refers the case to service
manager. The customer frequently changes his statements, when more detailed
information is requested by the service manager. It is evident to the branch officials
that the information that the customer has been providing is minimal and possibly
false or inconsistent. The branch head has decided to report it as a Suspicious
Transaction /Suspicious Activity through a Suspicious Transaction
Report/Suspicious Activity Report. What is the category of source of such an offline
Red Flag Indicator (RFI)/ alert?

Law Enforcement Agency Query (LQ)- Query or letter received from Law
Enforcement Agency (LEA)
criminal offences
Employee Initiated (EI)-Employee raised alert- Customer provides inconsistent
information
Item 11
One customer approached a bank branch to open an account and deposit a cheque
of large amount in the newly opened account. The customer seemed to be in hurry
and was not able to explain why he had travelled unexplained distances from his
own place to open an account and conduct transactions in a far off situated branch.
This made the branch officials suspicious and the branch decided to report this
incident through a Suspicious Transaction Report (STR)/ Suspicious Activity Report
(SAR) as a CDD measure. What is the category of source of such an offline Red Flag
Indicator (RFI)/ alert?

Employee Initiated (EI)-Employee raised alert -Customer avoiding nearer branches
Media Reports (MR)-Adverse Media Reports about customer,

Item 12
What is the threshold limit of transactions to be reported under Cross-Border Wire

Transfer Report?
Transactions of the value of more than Ten lakh rupees or its equivalent in foreign
currency
Transactions of the value of more than USD one million or its equivalent in foreign
currency
Transactions of the value of more than USD five lac or its equivalent in foreign
currency
Transactions of the value of more than Rs Five lakh or its equivalent in foreign
currency
Item 13
Which of the following is NOT a category of source of system generated STR

(Suspicious Transaction Report) ?
Transaction Monitoring (TM) related: Transaction monitoring system- generated

alerts such as unusually large number of cash deposits, many to one transaction
etc.
Risk Management System (RM) related: Risk management system-based alert - high
risk customer, country, location, source of funds etc.
Media Report (MR) - Adverse media report about criminal activities of customer
Item 14
What is the act of 'Tipping Off' ?
The act of letting the customers know, that their transactions/accounts are under
suspicion and may be subject to reporting, is referred to as tipping off.
The act of giving money as tip/incentive to money mules.
The act of collecting information on suspected Transactions.
None of the Above

Item 15

etc.

verification
Item 16
Who are called “Money Mules”?
A person who allows his accounts to be used for money laundering purposes.
Mule is an animal, being used for carrying money on it's back in hilly areas.
A person who works hard like a ‘Mule’(an animal) to earn money
A person who uses other person's account/s for money laundering purposes.
Item 17
A customer of a branch in Hyderabad, was not able to answer the queries made by
the service manager, regarding the drawer of the cheque, which had been drawn
for a large amount. Customer was nervous and over cautious in explaining
genuineness of the transaction and frequently changing his statements. This made
the official as well as the branch head suspicious and they decided to report the
incidence as a Suspicious Activity through Suspicious Activity Report/ STR. Under
which category the source of the offline Red Flag Indicator (RFI)/ alert will fall?

verification
TF offences

Employee Initiated (EI)-Employee raised alert- customer is nervous or over cautious

Item 18
What is the periodicity of Customer Risk Categorisation (CRC) for Low risk
individuals and entities?
Every 5 years
Every 8 Years
Every 10 Years
Every 2 Years
Item 19
On one fine day a customer approached the frontline staff of a bank branch and
asked if he could deposit Rs 25 lac in cash in his account on five different dates
within a month and whether the branch will report these transactions in Cash
Transaction Report. When replied in affirmation he tried to convince the staff to
avoid reporting as each transaction is below the threshold level. He deposited Rs 5
lac in cash and asked the way outs, to avoid reporting further cash transactions in
his account. One of the associates reported this suspicious behaviour of the
customer to the branch head. The branch head decided to report it as a Suspicious
Transaction /Suspicious Activity through a Suspicious Transaction
Report/Suspicious Activity Report. What is the category of source of such an offline
Red Flag Indicator (RFI)/ alert?
Employee Initiated (EI)-Employee raised alert- Customer wants to avoid reporting
criminal offences

verification

Item 20
Mr X provided false identification/address documents that appeared to be

counterfeited, altered, and inaccurate at the time of onboarding, the dealing officer
and branch head decided to raise a Suspicious Transaction Report (STR)/ Suspicious
Activity Report (SAR). The source of such an offline Red Flag Indicator (RFI) / alert
falls under______category?

verification

Item 21
Address provided by the customer Mr F was found to be non existent and an STR
(Suspicious Transaction Report) was raised by the branch. What is the source of
such an offline Red Flag Indicator (RFI)/ alert ?

verification

Item 22
A Branch received queries from state police regarding Mr X, who is a customer of

the branch. It was evident from the query that the customer was under
investigation in regards to various criminal offences. Should the branch file a
Suspicious Transaction Report (STR)/ Suspicious Activity Report (SAR) in this case ?
Yes branch should report it as a Suspicious Transaction Report (STR)/ Suspicious

Activity Report (SAR) but the reporting to FIU-IND will be through the Principal
officer i.e. GM (AML-CFT) only.

Activity Report (SAR) directly to FIU-IND.

Activity Report (SAR) to its controller, who will file it with FIU-IND on consolidated
basis for the entire region.
Branch need not report such matters of routine, further merely receiving queries
from a legal enforcement agency does not mean that the customer is a declared
culprit.
Item 23
A customer, namely, Mr T entered your branch. He tendered three cheques of Rs
500000, Rs 400000 and Rs 350000 for transferring funds from his personal account
to the account of Mr U. Three cheques of the same amount drawn by Mr U were
tendered along with pay-in-slips for transferring the funds to the account of Ms V.
Through a single cheque of Rs 1250000 from the account of Ms V the funds were
transferred again to the Home Loan account of Mr T. The service manager asked
Mr T the rational and purpose of these transactions but Mr T replied rudely to avoid
further queries. The branch head decides to report these transactions as Suspicious
Transactions through a Suspicious Transaction Report. What is the category of
source of such an STR/SAR?

verification
Typology (TY) related- Routing of funds through multiple accounts -transactions of

value of greater than INR 10 lacs between more than 3 accounts aggregating to
more than INR 30 lacs on the same day.

Watch List (WL) related- name of the customer appearing in negative list
Item 24
Through which set up Suspicious Transaction Reports are sent to Financial

Intelligence Unit-India (FIU- IND)?
STRs can be sent by LHO on consolidated basis for the circle, to FIU-IND.
STRs are to be reported through Principal Officer, AML-CFT cell, to FIU-IND.
Subjective STR can be sent immediately by Branch directly to FIU-IND under

information to the controller of branch.
STRs can be sent by RBO on consolidated basis for the respective region, to FIU-
IND.
Item 25
Which of the following reports, Bank is not obliged to submit to Financial

Intelligence Unit-India (FIU- IND) under PMLA-2002?
Cash Transactions Reports (CTRs)
Action Taken Reports (ATRs)
Non Profit Organisations Transactions Report (NTRs)
Counterfeit Currency Reports (CCRs)

Item 26


etc.
Item 27
What is full form of FATF?
Front Action Task Force
Financial Action Task Force
Full Action Task Force
Fair Action Task Force

Item 28
Suspicious Transactions Reports (STRs) can be classified into two following broad
categories that is_______________, based on the source of the alert which resulted in
escalating such STRs
Employee Initiated STRs & Customer initiated STRs
System Generated STRs & Subjective STRs
Internal STRs & External STRs
Customer related STRs & Non-customer related STRs

Item 29



etc.
Item 30
At what stages Transaction monitoring is conducted?
The transaction monitoring may be conducted at Pre-Transaction Stage & Post-Transaction

Stage
MODULE 4
‘…no banking company shall employ or continue to employ any person convicted of
an offence involving moral turpitude…’ The above stipulations are contained in
Banking Regulations Act
RBI Act
Indian Penal Code
None of these
Item 10
According to Bank’s guidelines on fraud prevention in High Value Banking Frauds,

which of the following statement is/are incorrect :
I) Genuineness of the buyers should be verified to ascertain their capability of huge
buying
II) Meaningful analysis of stock statements should be carried out
III) Past track record and status of the customers may be ignored
IV) Financial statements and other documents should be thoroughly checked for
their genuineness through various online sources e.g. ROC website, UDIN, GSTN
network etc. End use of the funds to be ensured.
Only I
Only III
Only IV
Only II
Item 13
1. According to Bank’s guidelines on fraud prevention in SRTO which of the following statement is/are
correct :
I) Registration of vehicle and noting of Bank’s hypothecation charge in the books of RTO to be
done and verified from “vahan.nic.in” site.
II) Physical verification of assets created should not be insisted.
III) Assets/security created out of Bank’s finance to be verified immediately after disbursement.
IV) Inspection of the vehicles and borrower to be done immediately after default of one instalment
and procedure for Seizure to be initiated so that fraud if any, get unearthed immediately Ans: Only I,
III and IV
2. According to Bank’s guidelines on fraud prevention in WHR which of the following statement is/are
correct :
I) Meaningful pre-sanction survey to be carried out to ascertain identity, address, credit

worthiness and integrity of the Proprietor of the firm. II) Adequate Insurance Cover for the commodity
/ stock to be ensured, due date of insurance to be diarized.
III) Market Price advised by Collateral Manager to be cross-checked with local Mandi/ MCX.
IV) Any adverse report on Collateral Manager to be shared immediately with Corporate Centre.
Ans: Only I, II, III and IV
3. Fraud Mitigation Measures include surprise verification of Agri gold loans. In surprise verification of
gold loans the identified official should ensure that the number of gold loan bags tally with the
number of accounts reported in the:
Ans: Loan Balance File/CCOD file (generated at EoD of previous working day)
4. Which option is incorrect in respect of following statement? Vigilance as a tool ensures:
Ans: Work life balance
5. According to Bank’s guidelines on fraud prevention in E-DFS, which of the following statement is/are
correct :
I) Bank wise segregation of stock be ensured. Diversion of funds to entities engaged in unrelated
activities be examined properly
II) Depletion of stock to be converted into reduction in liability
III) Check the authenticity of the documents/ reports/ certificates etc. with UDIN and the key fields
provided by the certifying Chartered Accountants.
IV) Pre/Post sanction surveys to be carried out in a meaningful manner.
6. In COVID-19 Pandemic environment fraudsters may try to open new accounts containing terms such
as COVID / CORONA. According to Bank’s guidelines on fraud prevention which of the following
statement is/are correct:
I) Customers should be made aware of the increasing risk of online frauds through phishing emails,
SMS, fraudulent loan and moratorium offers, fake COVID-19 sites and apps, fake banking and
insurance websites etc.
II) Branches should be more vigilant while opening accounts in the name of charitable institutions/
NGOs.
III) Sudden increase of Government credit observed in accounts of the person who may not be entitled
for such grants, should be discreetly enquired into, before allowing withdrawal.
IV) A list of such accounts opened since February 2020 may be extracted and verified
7. The process of investigation will be completed within ___days of receipt of complaint under Whistle
Blower Policy.
Ans: 45 Days
8. The Reviewing Authority, under Whistle Blower Policy shall submit quarterly status report with Action
Taken Report to the :
Ans: Audit Committee of the Board (ACB)
9. Preventive Vigilance Committee (PVC) is one of the tools for exercising preventive vigilance. Which of
the following statement is/are correct:
I) The Preventive Vigilance Committee is neither a ‘power centre’ nor the sole means for
exercising preventive vigilance.
II) It is akin to the ‘Knowledge Circle’, aimed at prevention of loss and enhancement of
performance III)The meetings of PVCs be held at least once in 6 months.
IV) The PVC submits status report and Action Taken Report to the Audit Committee of the Board on
annual basis.
Ans: Only I and II
10. PIDPI means

Ans: Public Interest Disclosure & Protection of informer
11. Bank’s guidelines are in place for Fraud prevention and mitigation measures in SME loans. which of
the following statement is/are correct in respect of frauds owing to fabricated financial and forged title
deed:I) Check the authenticity of the documents/ reports/ certificates etc. with UDIN and the key
fields provided by the certifying Chartered Accountants.
II) Reporting of Third-Party Entity (TPE) to IBA/ ICAI for black listing.
III) Justification of limits for the group concerns, proper assessment, satisfying about business
model is essential to avoid accommodation loans.
IV) Obtention of CIBIL report only on borrowers and not on guarantors.
Ans: Only I, II and III
12. If Whistle Blower is aggrieved by any action on the ground that he is being victimized due to the fact
that he had filed a complaint or disclosure, he may file an application before the
Ans: Reviewing Authority
13. According to Bank’s guidelines on fraud prevention in GSS/ Stand Up India/ MUDRA which of the
following statement is/are correct :
I) Loan proposal to be processed and accounts to be opened through LOS only.
II) Sanctioning officer to visit the unit, meet promoters and carry out proper due diligence
before sanctioning the loan.
III) Due diligence on supplier- supplier may be a related party.
IV) Charge on Collateral securities (mortgaged properties) to be recorded in revenue record. Periodic
Encumbrance Certificate to be obtained.
Ans: Only I, II and IV
14. Which of the following is not among protection available to a whistle blower?
Ans: Protection from adverse penal action even when disclosure is frivolous
15. According to Bank’s guidelines on fraud prevention in High Value Banking Frauds, which of the
following statement is/are incorrect :I) Genuineness of the buyers should be verified to ascertain their
capability of huge buying
IV) Financial statements and other documents should be thoroughly checked for their genuineness
through various online sources e.g. ROC website, UDIN, GSTN network etc. End use of the funds to be
ensured.
Ans: Only III
16. Which of the following statement is/are correct about activities under the purview of the Whistle
Blower Policy
I) Corruption, frauds, misuse/abuse of official position
II) Decision taken by the committees established by the Bank
III) Manipulation of data/ documents
IV) Accusation with non verifiable contents
Ans: Should be Only I and III (but two options with Only I, II and III) Choose the 3rd option (
17. As per Whistle Blower Policy of our Bank, the whistle blower is a/an ___
Ans: Employee of the Bank making a disclosure
I) A proper scrutiny of debtors should be carried out.
II) Financial statements should be scrutinised by field staff.
III) Genuineness of various documents should be ascertained.
IV) Effective exchange of information between banks should be strengthened.
19. Which of the following is not a security feature in Cheque Truncation System (CTS-2010) for Fraud
Mitigation Measures?
Ans: Telephone number field
20. The Whistle Blower Policy has been modified as per

Ans: All the above
21. According to Bank’s guidelines on fraud prevention in SME loans relating to disposal of collateral
security which of the following statement is/are correct : I) Bank should file application for urgent
hearing before DRAT to vacate the stay to be complied/ ensured, and after vacating the stay, the
properties should be sold under SARFAESI Act, II) Details of property to be registered with CERSAI
and CERSAI ID certificate for mortgaged properties to be kept on record, III) Copies of title deeds must
be obtained at the time of creation of mortgage, IV) Independent verification of mortgaged properties
to be carried out only once
Ans: Only I and II
22. As a part of pre-sanction Survey for Home loans and Home Related Loans seven digit certificate
number on form 16 is to be verified form :
Ans: https://contents.tdscpc.gov.in
23. Who is the Reviewing Authority under whistle blower policy of the Bank?
Ans: CGM (Fraud Monitoring Department)
24. As a part of pre-sanction Survey for Home loans and Home Related Loans TAN of borrower and
employer as per Form 16 is to be verified form :
Ans: https://incometaxindiaefiling.gov.in
25. According to Bank’s guidelines on fraud prevention in collateral security which of the following
statement is/are correct :
I) TIR to be obtained after every 2 years or at the time of enhancement.
II) Display of Bank’s board at prominent place in the unit.
III) Proper scrutiny of the lawyer’s report and valuation report.
IV) Charge on Collateral securities (mortgaged properties) to be recorded in revenue record. Periodic
Encumbrance Certificate to be obtained.
Ans: Only II, III and IV
26. Which of the following is NOT among different mechanisms of vigilance?
Ans: Coercive Vigillance
27. According to Bank’s guidelines on fraud prevention in Forex, which of the following statement is/are
correct :
I) Goods meant for export to be segregated from stocks meant for domestic sale.
II) Cheque facility is to be provided for EPC account
III) Export Packing Credit (EPC) to be released on request.
IV) Credit officials handling forex/ EPC to be given adequate training.
Ans: Only I and IV
28. According to Bank’s guidelines on fraud prevention in Forex, which of the following statement is/are
incorrect :
II) No Cheque facility is to be provided for EPC account
Ans: Only III
29. According to Bank’s guidelines on fraud prevention in Cash Credit Limits which of the following
I) Transfer of funds among the family concerns to be permitted without any limit.
II) TIR to be obtained after every 3 years or at the time of enhancement.
III) Noting of charge with revenue authority on mortgaged property to be ensured immediately
after creation of EM.
IV) CIBIL report to be periodically generated and scrutinized to ascertain borrowing from other
banks/ FIs
30. Cost on Preventive Vigilance vis a vis Corrective maintenance and failure cost follow a ratio Ans:
1:10:100
1. Fraud Mitigation Measures include surprise verification of gold loans. What is the stipulated
periodicity for surprise verification in Agri gold loans?
Ans: Quarterly
2. Which of the following is NOT among Mandatory Standard Cheque Security Features as per CTS
2010 Guidelines:
I) Standardized Field Placements

II) RBI’s Logo in UV Ink
III) Account Number Printed in Reverse in a Black Box IV) UV Band in variable fields
Ans: Only II
3. The Reviewing Authority, under Whistle Blower Policy shall submit quarterly status report
with Action Taken Report to the :
Ans: Audit committee of the Board (ACB)
4. Preventive Vigilance covers which areas of banking activities?
Ans: All of the above
5. Which of the following statement is/are incorrect about formation of Preventive Vigilance
Committees at branches / operating units of the Bank:
Ans: Branches having staff strength of 20 or more
I) The immovable security (Primary or Collateral) to be inspected at the time of

accepting the property for the first time and yearly thereafter. & Ownership &
Possession status of the property to be ascertained by making enquiries with the
neighbourhood and occupant of the property to be complied with.
II) High value transactions in CC account to be scrutinized to ensure against possible
diversion / siphoning.
III) Noting of charge with revenue authority on mortgaged property to be ensured within
3 years of creation of EM.
IV) CIBIL report to be periodically generated and scrutinized to ascertain borrowing from
other banks/ FIs
7. Which of the following statement is/are correct about activities under the purview of the
Whistle Blower Policy

Ans: Only I, II and III (Same two options)
8. As per Alertness Award Scheme of the Bank, a citation or certificate of merit may be given
under :
Ans: Category I
9. Fraud Mitigation Measures include surprise verification of Agri gold loans. In surprise
verification of gold loans the identified official should ensure that the number of gold loan
bags tally with the number of accounts reported in the:
Ans: Loan Balance file / CCOD file (generated at the EoD of the previous working day)
10. Which of the following statement is/ are correct about Identification / Reporting / Collation
and Analysis of Near Miss Event (NME):
I) The Bank shall treat events for which recovery has been made on the same business
day of the event as NME.
II) Capturing NMEs as many as possible, even though not all of them will have the same
importance.
Ans: Both I and II
following statement is/are incorrect :
I) Genuineness of the buyers should be verified to ascertain their capability of huge buying
IV) Financial statements and other documents should be thoroughly checked for their
genuineness through various online sources e.g. ROC website, UDIN, GSTN network etc.
End use of the funds to be ensured.
Ans: Only III
12. Bank’s guidelines are in place for Fraud prevention and mitigation measures in SME loans.
which of the following statement is/are correct in respect of frauds owing to fabricated
financial and forged title deed:
I) Check the authenticity of the documents/ reports/ certificates etc. with UDIN and the key
III) Justification of limits for the group concerns, proper assessment, satisfying about business
13. According to Bank’s guidelines on fraud prevention in Cash Credit Limits which of the
I) Business model/ need for all sister concerns and justification/ need for limits to be
established on approval. Transfer of funds among the family concerns to be probed with
extra due diligence.
III) Irregularity report to be submitted annually and comments thereon to be acted upon.
other banks/ FIs Ans: Only I and IV
14. Which option is incorrect in respect of following statement? Vigilance as a tool ensures:
Ans: Work life balance
15. Preventive Vigilance Committee (PVC) is one of the tools for exercising preventive vigilance.
Which of the following statement is/are incorrect :
I) 30% of staff members, minimum 3 officers / employees should be co-opted on the PVC of
each unit.
II)The head of the Branch / Unit and official dealing with operational risk would be permanent
members and other members to be rotated at quarterly intervals.
III)The meetings of PVCs be held at least once in 6 months.
IV)The controllers (any officer from controlling office-designated for the purpose) to guide the
staff in identifying the areas of vulnerability to frauds / malpractices, visit the branches / units
periodically and if possible, to attend meetings of PVCs, at least once in 6 months.
Ans: Only II and III
16. In case of payment of Non-Home cheque of ₹5 lakh and above and any suspicious transactions
irrespective of amount involved, the drawer is to be contacted over
Ans: Registered Mobile Number of the drawer
17. Which of the following is an apt description of a Near Miss Event (NME)
Ans: Near Miss Event is an event for which no financial loss has been incurred not because of effective
controls but due to fortuitous circumstances.
Ans: Employee of the bank making a disclosure
19. PIDPI means

Ans: Public Interest Disclosure & Protection of Informer
20. Which of the following is NOT among Mandatory Standard Cheque Security Features as per
CTS 2010 Guidelines:
II) Account Number Field
III) LCPC Name along with CTS 2010 IV) UV Band in variable fields
Ans: Only III
21. Which of the following is not among protection available to a whistle blower?
Ans: Protection from adverse penal action even when disclosure is frivolous
22. Which among the following is/are among roles and responsibilities of Reviewing Authority
under Whistle Blower Policy :
I) Functioning of the Policy will be reviewed by the Reviewing Authority on quarterly basis
II)Upon receiving the investigation report along with Designated Authority’s remark and
recommendation, Reviewing Authority may take a view on closure of the complaint or
forward the same to the concerned department for initiation of disciplinary proceedings. III)
The Reviewing Authority will be responsible to implement the Policy and ensure that the
Policy is known to all employees
IV) If any person (Whistle Blower) is aggrieved by any action on the ground that he is being
victimized due to the fact that he had filed a complaint or disclosure, he may file an
application before the Reviewing Authority, seeking redressal in the matter, wherein the
Reviewing Authority may give suitable directions to the concerned person or the authority.
23. Preventive Vigilance involves participation of -
Ans: Every employee
24. If Whistle Blower is aggrieved by any action on the ground that he is being victimized due to
the fact that he had filed a complaint or disclosure, he may file an application before the
Ans: Reviewing Authority
25. Which among the following is/are among roles and responsibilities of Designated Authority
I) The Designated Authority will be responsible to implement the Policy and ensure that
the Policy is known to all employees
II) Appoint/authorise any official to conduct an investigation under this Policy and
submit the report to Designated Authority.
III) Ensure that the identity of Whistle Blower is not disclosed. It also provides necessary
safeguard and protection to the employees who disclose the instances of unethical practices/
behaviour observed in the Bank.
IV) The Designated Officer shall submit consolidated status report of the bank, to the
Audit committee of the Board (ACB) on quarterly basis, with Action Taken Report
26. According to Bank’s guidelines on fraud prevention in term loan, which of the following
statement is/are incorrect :
I) Disbursement to be made to the account of supplier
II) Immediate inspection after purchase of machinery to be done to ensure proper utilization
of funds.
III) Physical progress / status of project to be monitored on an ongoing basis
IV) Certificate from Chartered account and Architect to be submitted by the company on
annual basis for progress of construction of the said project in respect of amount incurred
on the project.
Ans: Only IV
27. Which of the following statement is/are correct about activities under the purview of
Alertness Award for Near Miss Events including Prevention/Detection/Foiling of Frauds I)
The contribution made by the staff members in prevention of frauds/ detection of frauds/
foiling attempts of fraud/Near Miss Events should be significant and exemplary. II) Detection
of income leakage by staff members will also fall under the purview of this scheme.
Ans: Only I
28. Which of the following is not a security feature in Cheque Truncation System (CTS-2010) for
Fraud Mitigation Measures?
29. While making payment of Non-Home cheque of ₹5 lakh and above and any suspicious
transactions irrespective of amount involved, if contacting customer is not possible/
successful, what should be the further course of action?
30. NME stands for Ans:
Near Miss Event
1. Which of the following is among Mandatory Standard Cheque Security Features as per CTS 2010
Guidelines:
I) VOID Pantograph
II) Printer Name along with CTS 2010
III) Fugitive Background with Secondary Fluorescent Ink
IV) Cheque Colors & Background Mandatory CTS Standards
I) Transfer of funds among the family concerns to be permitted without any limit. II)
TIR to be obtained after every 3 years or at the time of enhancement.
III) Noting of charge with revenue authority on mortgaged property to be ensured immediately
banks/ FIs
4. Which of the following is among Mandatory Standard Cheque Security Features as per CTS 2010
Guidelines:
I) VOID Pantograph
II) RBI’s Logo in UV Ink
III) Fugitive Background with Secondary Fluorescent Ink
IV) Cheque Colors & Background Mandatory CTS Standards
Ans: Only I ,III and IV
5. What is incorrect as per Whistle Blower Policy of the Bank
Ans: Whistle Blowers are investigators or finders of facts
6. Which of the following is the new feature in Cheque Truncation System (CTS-2010) for Fraud
Mitigation Measures?
Ans: New Rupee symbol
genuineness through various online sources e.g. ROC website, UDIN, GSTN network etc. End
use of the funds to be ensured.
8. In COVID-19 Pandemic environment fraudsters may try to open new accounts containing terms
such as COVID / CORONA. According to Bank’s guidelines on fraud prevention which of the
following statement is/are correct:
I) Extra Due Diligence should be applied while opening such accounts and KYC check must be
performed thoroughly
II) Vigilance should be exercised while dealing with FCRA / NPO / Charitable institutions / other
accounts in which donations in the name of COVID are being credited.
III) Due care should be taken to properly identify the persons claiming to be government officials
and seeking information which is normally not provided
9. The scheme for Alertness Award for Near Miss Events including Prevention/Detection/Foiling of
Frauds is applicable to _________
Ans: all staff members, including regular, part-time and contract employees in the service of
the Bank
10. What is the new name of Scheme for Recognition & Reward of alertness in Staff Members ?
Ans: Alertness Award for Near Miss Events including Prevention/Detection/Foiling of Frauds
11. Which of the following is NOT among Mandatory Standard Cheque Security Features as per CTS
2010 Guidelines:

II) Account Number Field
III) LCPC Name along with CTS 2010
IV) UV Band in variable fields
Ans: Only III
1. According to Bank’s guidelines on fraud prevention in E-DFS, which of the following statement
is/are correct :
I) Bank wise segregation of stock be ensured. Diversion of funds to entities engaged in
unrelated activities be examined properly
II) Depletion of stock to be converted into increase in liability
III) Check the authenticity of the documents/ reports/ certificates etc. with UDIN and the key
IV) Pre/Post sanction surveys to be carried out in a meaningful manner.
Only I, III and IV
I) Extra Due Diligence should be applied while opening such accounts and KYC check must be
performed thoroughly
II) Vigilance should be exercised while dealing with FCRA / NPO / Charitable institutions / other
accounts in which donations in the name of COVID are being credited.
III) Due care should be taken to properly identify the persons claiming to be government officials
and seeking information which is normally not provided
Only I, II and III
established on approval. Transfer of funds among the family concerns to be probed with
extra due diligence.
III) Irregularity report to be submitted annually and comments thereon to be acted upon. IV)
CIBIL report to be periodically generated and scrutinized to ascertain borrowing from other
banks/ FIs
Only II and III
4. What is incorrect as per Whistle Blower Policy of the Bank ANS: Whistle Blowers are
investigators or finders of facts
ANS: Only I, II, III and IV

ANS: Employee of the bank making a disclosure
7. PIDPI means
ANS: Public Interest Disclosure & Protection of Informer
8. According to Bank’s guidelines on fraud prevention in WHR which of the following statement
is/are incorrect :
I) Warehouse/ Godowns to be visited and stocks to be verified periodically. II) Financing of

stocks held in borrowers godowns may be permitted.
III) Market Price advised by Collateral Manager to be cross-checked with local Mandi/ MCX. IV) It
is to be ensured that underlying stocks are segregated/ properly tagged with Bank’s name.
ANS: Only II
9. The action taken against each disclosure will be put up to the Reviewing Authority within ___days
of receipt of complaint under Whistle Blower Policy.
ANS: 7 DAYS
10. Which of the following is not among protection available to a whistle blower? ANS:
Protection from adverse penal action even when disclosure is frivolous
11. According to Bank’s guidelines on fraud prevention in WHR which of the following
worthiness and integrity of the Proprietor of the firm. II) Adequate Insurance Cover for the
commodity / stock to be ensured, due date of insurance to be diarized.
III) Market Price advised by Collateral Manager to be cross-checked with local Mandi/ MCX. IV)
Any adverse report on Collateral Manager to be shared immediately with Corporate Centre.
ANS: Only I, II, III and IV
12. Bank’s guidelines are in place for Fraud prevention and mitigation measures in SME loans.
Which of the following statement is/are incorrect in respect of frauds owing to fabricated
financial and forged title deed:

I) Check the authenticity of the documents/ reports/ certificates etc. with UDIN and the
key fields provided by the certifying Chartered Accountants.
II) Reporting of Third-Party Entity (TPE) to Law Enforcement Agencies for black listing. III)
Justification of limits for the group concerns, proper assessment, satisfying about business
IV) Conduct of periodic stock audit to be ensured and due closure of Audit report.
ANS: Only II
ANS: https://contents.tdscpc.gov.in
14. Bank’s guidelines are in place for fraud prevention and mitigation measures in SME loans.
which of the following statement is/are incorrect in respect of frauds owing to overvaluation of
collateral and diversion of fund :
I) Value of the property offered as security to be independently verified by the Bank official
and to be duly recorded.
II) Due diligence on the supplier to be done and opinion report to be obtained. Funds to be
disbursed directly to borrower.
III) During post disbursement inspection, details of machineries purchased to be verified and
periodic inspection to be done at regular intervals.
IV) Account with other Bank to be closed as and when detected.
ANS: Only II and III
15. According to Bank’s guidelines on fraud prevention in Forex, which of the following statement
is/are correct :
I) Goods meant for export to be kept along with stocks meant for domestic sale.
II) Credit limit to be sanctioned after detailed appraisal / assessment duly supported by
documentary evidences.
III) Export Packing Credit (EPC) to be released after obtaining copies of confirmed orders and to
be liquidated out of export proceeds.
IV) ECGC guarantee cover to be obtained and guidelines to be ensured. ANS: Only II, III and IV
is/are correct :
I) Warehouse/ Godowns to be visited and stocks to be verified periodically. II) It is to be
ensured that underlying stocks are segregated/ properly tagged with Bank’s name.
Financing of stocks held in borrowers godowns may be permitted. ANS: Only I, II and III
II) Sanctioning officer to visit the unit, meet promoters and carry out proper due diligence
before sanctioning the loan.
IV) Charge on Collateral securities (mortgaged properties) to be recorded in revenue record.
Periodic Encumbrance Certificate to be obtained.
ANS: Only I, II and IV
18. As per confidentiality mechanism of whistle blower, the identity of the whistle blower remains
with the:
Ans: Designated Authority
19. Which of the following statement is/are incorrect about formation of Preventive Vigilance
Committees at branches / operating units of the Bank-
ANS: Branches having staff strength of 20 or more
I) Disbursement to be made to the account of borrower
II) Immediate inspection after purchase of machinery to be done to ensure proper utilization of
funds.
III) Transaction with related party to be allowed without restrictions
IV) Post sanction inspection to be done at periodic interval to ensure end use of funds ANS: Only
II and IV
21. According to Bank’s guidelines on fraud prevention in SRTO which of the following statement
is/are correct :
I) Registration of vehicle and noting of Bank’s hypothecation charge in the books of RTO to be
done and verified from “vahan.nic.in” site.
III) Assets/security created out of Bank’s finance to be verified immediately after disbursement.
IV) Inspection of the vehicles and borrower to be done immediately after default of one
instalment and procedure for Seizure to be initiated so that fraud if any, get unearthed
immediately
ANS: Only I ,III and IV
ANS: Account Number Printed in a Black Box
23. Any employee (officer / award) willing to disclose information under Whistle Blower Policy, may
do so in which of the following manner?
ANS: All of these
I) TIR to be obtained after every 2 years or at the time of enhancement. II)
Display of Bank’s board at prominent place in the unit.

ANS: Only II, III and IV
I) Noting of charge with revenue authority on mortgaged property to be ensured within one
year of EM creation.
II) Issuance of Look out notice to be processed.
III) To make post-sanction inspection on appointment basis.
ANS: Only I and III
26. As a part of pre-sanction Survey for Home loans and Home Related Loans TAN of borrower and
employer as per Form 16 is to be verified form :
ANS: https://incometaxindiaefiling.gov.in
27. Who is the Reviewing Authority under whistle blower policy of the Bank?
ANS: CGM (Fraud Monitoring Department)
28. In case of payment of Non-Home cheque of ₹5 lakh and above and any suspicious
transactions irrespective of amount involved, the drawer is to be contacted over ANS:
Registered Mobile Number of the drawer
29. Which of the following is incorrect statement about Preventive Vigilance Committee ANS: It
is the sole means for exercising preventive vigilance
Which of the following statement is/are incorrect :
I) 30% of staff members, minimum 3 officers / employees should be co-opted on the PVC of
each unit.
II)The head of the Branch / Unit and official dealing with operational risk would be
permanent members and other members to be rotated at quarterly intervals.
IV)The controllers (any officer from controlling office-designated for the purpose) to guide the
staff in identifying the areas of vulnerability to frauds / malpractices, visit the branches / units
periodically and if possible, to attend meetings of PVCs, at least once in 6 months. ANS: Only II and
III
I) Loan proposal to be processed and accounts to be opened through LOS only. II)
Physical verification of assets created should not be insisted.
III) Due diligence on supplier- supplier should not be a related party. IV)
OTMS alerts may be responded in routine manner
Ans: Only I and IV
Ans: Employee of the bank making a disclosure
I) The immovable security (Primary or Collateral) to be inspected at the time of accepting
the property for the first time and yearly thereafter. & Ownership & Possession status
of the property to be ascertained by making enquiries with the neighbourhood and occupant of
the property to be complied with.
II) High value transactions in CC account to be scrutinized to ensure against possible
diversion / siphoning.
III) Noting of charge with revenue authority on mortgaged property to be ensured within 3
years of creation of EM.
other banks/ FIs
genuineness through various online sources e.g. ROC website, UDIN, GSTN network etc. End use
of the funds to be ensured.
6. As a part of pre-sanction Survey for Home loans and Home Related Loans GST Registration
number of borrower and dealer is to be verified form :
Ans: https://cbec-easiest.gov.in
7. Preventive Vigilance involves participation of -
Ans: Every employee
transactions irrespective of amount involved, if contacting customer is not possible/ successful,
what should be the further course of action?
is/are correct :

worthiness and integrity of the Proprietor of the firm. II) Adequate Insurance Cover for the
commodity / stock to be ensured, due date of insurance to be diarized.
Any adverse report on Collateral Manager to be shared immediately with Corporate Centre.
is/are correct :
I) Goods meant for export to be kept along with stocks meant for domestic sale.
II) Credit limit to be sanctioned after detailed appraisal / assessment duly supported by
documentary evidences.
III) Export Packing Credit (EPC) to be released after obtaining copies of confirmed orders and to
be liquidated out of export proceeds.
IV) ECGC guarantee cover to be obtained and guidelines to be ensured.

funds.
IV) Post sanction inspection to be done at periodic interval to ensure end use of funds
Ans: Only II and IV
12. Fraud Mitigation Measures include surprise verification of Agri gold loans. In surprise verification
of gold loans the random basis check involves:
Ans: Checking the ornaments for purity in respect of 30% or maximum of 100 gold loan accounts
whichever is less
genuineness through various online sources e.g. ROC website, UDIN, GSTN network etc. End
use of the funds to be ensured.
Ans: Only III
established on approval. Transfer of funds among the family concerns to be probed with extra
due diligence.
III) Irregularity report to be submitted annually and comments thereon to be acted upon.
other banks/ FIs
I) Customers should be made aware of the increasing risk of online frauds through
phishing emails, SMS, fraudulent loan and moratorium offers, fake COVID-19 sites and apps,
fake banking and insurance websites etc.
II) Branches should be more vigilant while opening accounts in the name of charitable
institutions/ NGOs.
III) Sudden increase of Government credit observed in accounts of the person who may not
be entitled for such grants, should be discreetly enquired into, before allowing withdrawal. IV) A
list of such accounts opened since February 2020 may be extracted and verified
17. The Reviewing Authority, under Whistle Blower Policy shall submit quarterly status report with
Action Taken Report to the :
Ans: Audit committee of the Board (ACB)
I) Transfer of funds among the family concerns to be permitted without any limit. II)
TIR to be obtained after every 3 years or at the time of enhancement. III) Noting of
charge with revenue authority on mortgaged property to be ensured immediately
banks/ FIs
20. Which among the following is/are among roles and responsibilities of Reviewing Authority under
Whistle Blower Policy :
I) Functioning of the Policy will be reviewed by the Reviewing Authority on quarterly basis
II)Upon receiving the investigation report along with Designated Authority’s remark and
recommendation, Reviewing Authority may take a view on closure of the complaint or forward
the same to the concerned department for initiation of disciplinary proceedings.
III) The Reviewing Authority will be responsible to implement the Policy and ensure that the
IV) If any person (Whistle Blower) is aggrieved by any action on the ground that he is being
victimized due to the fact that he had filed a complaint or disclosure, he may file an
application before the Reviewing Authority, seeking redressal in the matter, wherein the
Reviewing Authority may give suitable directions to the concerned person or the authority.
I) Noting of charge with revenue authority on mortgaged property to be ensured within one
II) Issuance of Look out notice to be processed.
Ans: Only I and III
22. What is incorrect as per Whistle Blower Policy of the Bank
Ans: Whistle Blowers are investigators or finders of facts
is/are incorrect :
I) Warehouse/ Godowns to be visited and stocks to be verified periodically. II) Financing of
stocks held in borrowers godowns may be permitted.
It is to be ensured that underlying stocks are segregated/ properly tagged with Bank’s name. Ans: Only
II
24. Bank’s guidelines are in place for fraud prevention and mitigation measures in SME loans.
which of the following statement is/are incorrect in respect of frauds owing to overvaluation of
collateral and diversion of fund :
I) Value of the property offered as security to be independently verified by the Bank official
and to be duly recorded.
II) Due diligence on the supplier to be done and opinion report to be obtained. Funds to be
disbursed directly to borrower.
III) During post disbursement inspection, details of machineries purchased to be verified and
periodic inspection to be done at regular intervals.
IV) Account with other Bank to be closed as and when detected.
25. Any employee (officer / award) willing to disclose information under Whistle Blower Policy, may
do so in which of the following manner?
Ans: All of these
is/are correct :
I) Warehouse/ Godowns to be visited and stocks to be verified periodically. II) It is to be ensured

that underlying stocks are segregated/ properly tagged with Bank’s name.
Financing of stocks held in borrowers godowns may be permitted.
I) Disbursement to be made to the account of supplier

funds.
III) Physical progress / status of project to be monitored on an ongoing basis
IV) Certificate from Chartered account and Architect to be submitted by the company on annual
basis for progress of construction of the said project in respect of amount incurred on the
project.
Ans: Only IV
28. Which among the following is/are among roles and responsibilities of Designated Authority
I) The Designated Authority will be responsible to implement the Policy and ensure that the
II) Appoint/authorise any official to conduct an investigation under this Policy and submit
the report to Designated Authority.
III) Ensure that the identity of Whistle Blower is not disclosed. It also provides necessary
safeguard and protection to the employees who disclose the instances of unethical practices/
behaviour observed in the Bank.
IV) The Designated Officer shall submit consolidated status report of the bank, to the Audit
committee of the Board (ACB) on quarterly basis, with Action Taken Report
Ans: https://contents.tdscpc.gov.in
30. As per confidentiality mechanism of whistle blower, the identity of the whistle blower remains
with the:
Ans: Designated authority
31. Fraud Mitigation Measures include surprise verification of gold loans. What is the stipulated
periodicity for surprise verification in Agri gold loans?
Ans: Quarterly
32. Who is the Designated Official under whistle blower policy of the Bank?
Ans: DGM & CFO for circles / GM (Fraud Monitoring Department) for CC establishments
transactions irrespective of amount involved, if contacting customer is not possible/
successful, what should be the further course of action?
34. Which of the following does not come under the purview of the Whistle Blower Policy Ans:
Complaint with non verifiable contents
35. According to Bank’s guidelines on fraud prevention in collateral security which of the
I) Obtaining certified copies of title deeds by Advocate and comparison with original title
deeds to be ensured.
II) Noting of charge with revenue authority on mortgaged property to be ensured within one
Ans: Only I and IV
II) Immediate inspection after purchase of machinery to be done to ensure proper utilization
of funds.
IV) Post sanction inspection to be done at periodic interval to ensure end use of funds Ans:
Only II and IV
37. As a part of pre-sanction Survey for Home loans and Home Related Loans TIN of borrower is to
be verified form :
Ans: https://www.tinxsys.com
38. As a part of pre-sanction Survey for Home loans and Home Related Loans TDS of borrower is
to be verified form :
Ans: https://incometaxindiaefiling.gov.in
is/are correct :
IV) Credit officials handling forex/ EPC to be given adequate training. Ans: Only I and IV
Which of the following statement is/are correct :
performance
IV) The PVC submits status report and Action Taken Report to the Audit Committee of the
Board on annual basis.
Ans: Only I and II

1
According to Bank’s guidelines on fraud prevention in Forex, which of the following
Only I, II and IV
Only I and IV
Only II, III and IV
Only I and III

Item 2
2
Which of the following is not among protection available to a whistle blower?
Protection from victimisation
Protection from adverse penal action for disclosure made in good faith
Protection against any adverse reporting in Annual Appraisal/Performance report
Protection from adverse penal action even when disclosure is frivolous

Item 3
3
According to Bank’s guidelines on fraud prevention in Forex, which of the following
II) No Cheque facility is to be provided for EPC account
Only I
Only II
Only III
Only IV
Item 4
Item 5
5
Item 6. Selected.
6
According to Bank’s guidelines on fraud prevention in Cash Credit Limits which of the
I) Transfer of funds among the family concerns to be permitted without any limit.
III) Noting of charge with revenue authority on mortgaged property to be ensured
immediately after creation of EM.
other banks/ FIs
Only I and IV
Only II, III and IV
Only I, II and IV
Only I and III

Item 7
7
Which of the following statement is/are correct about activities under the purview of the
Whistle Blower Policy
Only I II and III
Only I, II and III
Only I, II and IV
Only I, II, III and IV

Item 8
8
The process of investigation will be completed within ___days of receipt of complaint
under Whistle Blower Policy.
14
21
45
30
Item 9
9
As per Whistle Blower Policy of our Bank, the whistle blower is a/an ___
Investigator
Employee of the bank making a disclosure
Social activist
Fact finder
Item 10
10
Which of the following is not a security feature in Cheque Truncation System (CTS-
2010) for Fraud Mitigation Measures?
Micro Lettering
Telephone number field
Account Number Field
CTS India Watermark paper

Item 11
11
Who is the Reviewing Authority under whistle blower policy of the Bank?
DGM & CFO for circles / GM (Fraud Monitoring Department) for CC establishments
CGM (Fraud Monitoring Department)
CVO
DGM (VIG)
Item 12
12
Which of the following is NOT among different mechanisms of vigilance?
Coercive Vigilance
Preventive Vigilance
Punitive Vigilance
Detective Vigilance
Item 13
13
The Whistle Blower Policy has been modified as per
Section 177 of Companies Act, 2013
Relevant Notifications of RBI,
SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
All of the above

Item 14
14
which of the following statement is/are correct :
Only I, II and III
Only I and III
Only I, II and IV

Item 15
15
Preventive Vigilance Committee (PVC) is one of the tools for exercising preventive
vigilance. Which of the following statement is/are correct :
performance
IV) The PVC submits status report and Action Taken Report to the Audit Committee of
the Board on annual basis.
Only I and II
Only II and IV
Only I, II and IV
Only I and IV
Item 16
16
In COVID-19 Pandemic environment fraudsters may try to open new accounts
containing terms such as COVID / CORONA. According to Bank’s guidelines on fraud
prevention which of the following statement is/are correct:
I) Customers should be made aware of the increasing risk of online frauds through
phishing emails, SMS, fraudulent loan and moratorium offers, fake COVID-19 sites and
apps, fake banking and insurance websites etc.
II) Branches should be more vigilant while opening accounts in the name of charitable
institutions/ NGOs.
III) Sudden increase of Government credit observed in accounts of the person who may
not be entitled for such grants, should be discreetly enquired into, before allowing
withdrawal.
Only I and III
Only I, II and IV
Only I, II and III

Item 17
17
According to Bank’s guidelines on fraud prevention in SME loans relating to disposal of
collateral security which of the following statement is/are correct : I) Bank should file
application for urgent hearing before DRAT to vacate the stay to be complied/ ensured,
and after vacating the stay, the properties should be sold under SARFAESI Act, II)
Details of property to be registered with CERSAI and CERSAI ID certificate for
mortgaged properties to be kept on record, III) Copies of title deeds must be obtained at
the time of creation of mortgage, IV) Independent verification of mortgaged properties to
be carried out only once
Only I, II and IV
Only I and IV
Only I and II
Only II and IV
Item 18
18
According to Bank’s guidelines on fraud prevention in WHR which of the following
worthiness and integrity of the Proprietor of the firm. II) Adequate Insurance Cover for
the commodity / stock to be ensured, due date of insurance to be diarized.
III) Market Price advised by Collateral Manager to be cross-checked with local Mandi/
MCX.
IV) Any adverse report on Collateral Manager to be shared immediately with Corporate
Centre.
Only I, II and IV
Only I, II and III
Only I and III

Item 19
19
The Reviewing Authority, under Whistle Blower Policy shall submit quarterly status
report with Action Taken Report to the :
Executive Committee of the Central Board (ECCB)
Audit committee of the Board (ACB)
Corporate Social Responsibility Committee (CSRC)
Risk Management Committee of the Board (RMCB)

Item 20. Selected.
20
According to Bank’s guidelines on fraud prevention in GSS/ Stand Up India/ MUDRA
which of the following statement is/are correct :
II) Sanctioning officer to visit the unit, meet promoters and carry out proper due
diligence before sanctioning the loan.
IV) Charge on Collateral securities (mortgaged properties) to be recorded in revenue
record. Periodic Encumbrance Certificate to be obtained.
Only I and III
Only II and IV
Only I and IV
Only I, II and IV
Item 21
Item 22
Item 23
23
According to Bank’s guidelines on fraud prevention in SRTO which of the following
I) Registration of vehicle and noting of Bank’s hypothecation charge in the books of
RTO to be done and verified from “vahan.nic.in” site.
III) Assets/security created out of Bank’s finance to be verified immediately after
disbursement.
IV) Inspection of the vehicles and borrower to be done immediately after default of one
instalment and procedure for Seizure to be initiated so that fraud if any, get unearthed
immediately
Only I ,III and IV
Only I and IV
Only I and III
Only I, II and IV
Item 24
Item 25
25
Which option is incorrect in respect of following statement? Vigilance as a tool ensures:
Ascertaining accountability
Disciplining the wrong doers
Work life balance
Protecting honest performers

Item 26
26
According to Bank’s guidelines on fraud prevention in collateral security which of the
I) TIR to be obtained after every 2 years or at the time of enhancement.
II) Display of Bank’s board at prominent place in the unit.
IV) Charge on Collateral securities (mortgaged properties) to be recorded in revenue
record. Periodic Encumbrance Certificate to be obtained.
Only I and III
Only I, II and IV
Only II, III and IV
Only I and IV
Item 27
27
which of the following statement is/are incorrect :
I) Genuineness of the buyers should be verified to ascertain their capability of huge
buying
genuineness through various online sources e.g. ROC website, UDIN, GSTN network
etc. End use of the funds to be ensured.
Only IV
Only III
Only I
Only II
Item 28
Item 28
28
Cost on Preventive Vigilance vis a vis Corrective maintenance and failure cost follow a
ratio
1:10:100
10:1:100
10:100:1
100:10:01
Item 29
29
Bank’s guidelines are in place for Fraud prevention and mitigation measures in SME
loans. which of the following statement is/are correct in respect of frauds owing to
fabricated financial and forged title deed:
I) Check the authenticity of the documents/ reports/ certificates etc. with UDIN and the
key fields provided by the certifying Chartered Accountants.
III) Justification of limits for the group concerns, proper assessment, satisfying about
business model is essential to avoid accommodation loans.
Only I, II and IV
Only II and III
Only I and IV
Only I, II and III

Item 30. Selected.
MODULE 3
The process of Name Screening is carried out to ensure ________
that the identity of the customer does not match with any other person or entity
whose name appears in the RBI wilful defaulter's list
that the identity of the customer does not match with any person or entity
maintaining similar type of account at any other bank.
that the identity of the customer does not match with any person or entity, whose
name appears in the sanctions lists circulated by the Reserve Bank of India
that the identity of the customer does not match with any other person or entity
maintaining account in the same bank.
Item 2
Which of the following additional information is not required for risk categorization
of customers?
Family details
reason for opening the account
anticipated level and nature of the activity that is to be undertaken
expected source of funds.

Item 3
As per the laid procedure for implementation of Section 51A of the Unlawful
Activities (Prevention) Act, 1967 in case an application is received from an
individual/ entity, having evidence to prove that it's funds are inadvertently frozen,
the application must be forwarded to the Central Designated Nodal Officer for
UAPA within _______ with full particulars.
2 working days
3 working days
7 working days
12 working days
Item 4
Feeding of erroneous data regarding ‘Date of Birth’ may lead to
denial of Senior Citizen benefits by the system even if they have become a senior
citizen
incorrect analysis to decide positive/ negative match in case of alert generated

during name screening against the negative lists.
erroneous conversion of accounts from minor to major.
All of the above

Item 5
Which of the following actions banks are required to take in case the match of any
of the customers with the particulars of designated individuals/entities is beyond
doubt as per laid procedure for implementation of Section 51A of the Unlawful
Activities (Prevention) Act, 1967?
The banks shall prevent such designated persons from conducting financial
transactions under intimation to the Central [designated] Nodal Officer for the
UAPA.
The banks shall close the account of such designated persons and transfer the fund
to the account of under intimation to the Central [designated] Nodal Officer for the
UAPA.
both of these
None of these
Item 6
Reporting Entities are NOT required to carry out ‘Money Laundering (ML) and
Terrorist Financing (TF) Risk Assessment’ exercise periodically in respect of_____
Services and products
Transactions or delivery channels
Auditors
Clients, countries or geographical areas

Item 7
Transaction monitoring is carried out for which of the following purposes?
ensuring that the value, nature and pattern of transaction is consistent with the
customer profile
to determine whether the transaction under consideration has an economic

rationale
Both of the above
None of the above

Item 8
Which of the following additional information need to be collected for risk
categorization ? a) Father / Mother's maiden name, b) anticipated level and nature
of the activity that is to be undertaken, c) Marital Status, d) details of occupation /
employment and sources of wealth or income.
Only a, b & d
Only b & d
Only a, c & d
All of the above

Item 9
Wrong filing of statutory returns at Bank level may result due to feeding of
erroneous data regarding _____
Marital Status
Gender- male/female/ transgender
Educational Qualification
All of the above

Item 10
which of the following may NOT impact proper reporting to FIU-India in Cross
Border Wire Transfer Reports- (CBWTR).
Feeding of erroneous data regarding ‘Country code of jurisdiction of residence’
Feeding of wrong information regarding marital status.
Feeding of erroneous data regarding ‘Citizenship’

All of the above
Item 11
It is very important to key in the correct details and codes regarding the Occupation
of the customer in the AOF as well as in CBS. Which of the following options are
correct in this regard?
It enables bank to analyse the transactions conducted by a customer, with a view to

ensuring that the value, nature and pattern of transaction is consistent with profile
and whether the transaction has an economic rationale.
It enable bank to know/understand their customers and their financial dealings

better and manage their risks prudently.
It helps Bank in analysing the transactions in the account of the customer, with the
view of filing Suspicious Transaction Report.
All of the above are correct.

Item 12
Feeding of erroneous data regarding ‘Gender- Male/Female/Transgender’ may not

lead to
non-compliance of Government guidelines in the extension of Gender-specific

subsidy benefits
wrong reporting to FIU-India
periodic updation of KYC
None of the above

Item 13
Enhanced due diligence is NOT required to be undertaken in respect of which type
of customers?
Accounts of non-face-to-face customers (other than Aadhaar OTP based on-

boarding):
Client accounts opened by professional intermediaries
Accounts of Politically Exposed Persons (PEPs)
Accounts of Persons, opened under Liberalised KYC.

Item 14
Which of the following statement is /are correct regarding RBI instructions on

Money Laundering and Terrorist Financing Risk Assessment by Banks & other REs?
The regulator will determine the exact level of ‘Money Laundering (ML) and
Terrorist Financing (TF) risk for Individual institution/ RE.
The regulator may provide guidelines, but it’s up to the individual institution/ RE to
determine the exact level of ‘Money Laundering (ML) and Terrorist Financing (TF)
risk.
Both the statements are correct.
Both the statements are false.

Item 15
It’s not enough to apply Customer Due Diligence (CDD) measures, once at the time
of onboarding, a reporting entity, should exercise due diligence _____________ in
respect of customers to monitor transactions to ensure that they are consistent
with the customer’s personal profile, business / risk profile and source of funds.
on daily basis
on monthly basis
on quarterly basis
on an ongoing basis
Item 16
In the process of Name screening, a positive match is said to occur when_____
the name and at least one other identifiers as given in negative list match.
the name and at least two other identifiers as given in negative list match.
the name and at least three other identifiers as given in negative list match.
the name and at least five other identifiers as given in negative list match.
Item 17
Reporting Entities are required to carry out ‘Money Laundering (ML) and Terrorist
Financing (TF) Risk Assessment’ exercise periodically in respect of______
Share holders
Auditors
All of the above
Item 18
Which of the following erroneous data will have NO impact on effective monitoring
of transactions?
Date of Birth
Threshold Limit
Occupation type
Monthly Income
Item 19
As per laid procedure for implementation of Section 51A of the Unlawful Activities
(Prevention) Act, 1967, in case of match of particulars of any of their customers
match with the particulars of designated individuals/entities, the banks shall inform
to the Central [designated] Nodal Officer for the UAPA. Which of the following
mode of communication have to be used for this?
Inform by Fax and over Telephone
Convey through Email
Inform by Post
All of the above modes are to be used.

Item 20
Which of the following is NOT a probable impact due to account opened with
misspelt name (Rahim/Raheem) ?
Impacts the quality and result of name screening against the negative lists.
Lack of exercising due diligence as per Customer Identification Procedure.
Wrong reporting to FIU-India.
Impacts monitoring as citizens of some specific countries are not permitted to open
accounts in India.
Item 21
Customer profiles must be reviewed ______.
whenever the branch has doubt about the veracity or the adequacy of the
previously obtained customer identification data.
once in 6 year
once in a year
once in 3 year
Item 22
As per the laid procedure for implementation of Section 51A of the Unlawful
Activities (Prevention) Act, 1967,in case, the results of the verification indicate that
the properties are owned by or are held for the benefit of the designated
individuals/entities, an orders to freeze these assets under Section 51A of the UAPA
would be issued. Which of the following statement is wrong regarding the order so
issued?
In case, the results of the verification indicate that the properties are owned by the
designated individuals/entities, an order to freeze these assets would by issued by
Central (Designated) Nodal Officer for UAPA.
designated individuals/entities, an order shall be issued under intimation to FIU-
IND respective regulators.
designated individuals/entities, an order shall be issued with prior notice to the
designated individual/ entity.
designated individuals/entities, an order will be conveyed electronically to the
concerned bank branch.
Item 23
Periodic updation of KYC is to be carried out at least once in every _____ years for
Accounts of Politically Exposed Persons (PEPs).
3
Item 24
All customers, individuals and nonindividuals, are to be categorised as High,

Medium and Low risk for the purpose of_____
proper transaction monitoring
proper regulatory reporting
Both of the above
None of the above

Item 25
Poor data entry implies____
data not entered correctly.
misspellings, typo errors, transpositions, and variations in spelling, naming or

formatting.
a single account, contact, etc. that occupies more than one record in the database.
data has been entered in the wrong field

Item 26
Which of the following data error will impact generation of alert by system in name
screening process?
PAN/ Form 60
Name of the constituent
Citizenship
Nationality
Item 27
RBI directions make it mandatory for Banks/REs to report details of accounts

resembling any of the individuals/entities in the negative lists to various authorities.
Which set of the institutions given in the following options is the correct one?
CBDT & Ministry of Home Affairs
RBI & Ministry of External Affairs
Ministry of External Affairs & FIU-IND

FIU -IND & Ministry of Home Affairs
Item 28
Which type of erroneous data may NOT have impact on FATCA/CRS compliance
related issues
Data regarding Country code of jurisdiction of residence.
Data regarding Educational qualification.
Data regarding ‘Nationality’.
Data regarding ‘Citizenship’.

Item 29
Which of the following parameters is NOT considered for Customer Risk

Categorisation-
social/ financial status of the customer
nature of business or profession of the customer
information about the clients’ business and their location
Assets & outstanding liabilities of the customer.

Item 30
Feeding of erroneous data regarding ‘Political exposed person (PEP) /Relative to PEP’ status
may not result in to ____
Deduction of tax at source at incorrect rate

If a Maker/Checker has selected 'Occupation Code' as 'Not Categorised" in CBS while
creating a CIF, what is further expected from the maker/checker as per extant Bank
instructions?
Once the 'Occupation Code' has been selected as 'Not Categorised, 'Maker/Checker
has no option to key in the exact details of occupation of the customer.
Maker/Checker has to mandatorily key in the occupation of the customer as mentioned

in the AOF in the description field
No 'Occupation Code' is available to Maker/Checker to be selected as 'Not Categorised"

in CBS while creating a CIF.
Maker/Checker has no option available in CBS to key in the occupation of the customer
once the 'Occupation Code' has been selected as 'Not Categorised.'
Item 10
Item 11
11
“Customer Profile” of individual account holders is compiled from ______
mandatory/ additional information provided on RBI site.
mandatory/ additional information provided by AML- CFT department.
mandatory/ additional information submitted by the customer in the account opening

form.
Information obtained through independent inquiry from other customers.

Item 12
Section 51A of the Unlawful Activities (Prevention) (UAPA) Act, 1967 requires
Banks/REs to ensure_____
filing of STRs in the accounts, where the transactions do not match with the customer
profile.
that they do not have any account in the name of individuals/ entities appearing in the
lists of individuals and entities, suspected of having terrorist links, which are approved
by UNSC.
Both of these
None of these
Item 14
14
Due diligence as per Customer Identification Procedure may not be exercised properly
due to feeding of erroneous data regarding _____ .
Father's Name
Name of the customer
Date of Birth
All of the above
Item 15. Selected.

Item 16
Item 17
17
Due diligence as per Customer Identification Procedure may not be exercised properly
due to feeding of erroneous data regarding ______ .
Politically exposed person status
Residential Status (RI/NRI)
PAN/Form 60
All of the above

Item 18
18
Enhanced due diligence is required to be undertaken in respect of which type of
customers?
Accounts of Persons, opened under Liberalised KYC.
Small Accounts opened without production of Aadhar number or any of the Official Valid
Documents (OVDs).
Accounts of Politically Exposed Persons (PEPs)
All of the above

Item 19
19
Enhanced due diligence is required to be undertaken in respect of which type of
customers?
Certain type of medium-risk customers & High risk customers
High-risk customers
RBI selected list of customers
Certain type of low-risk customers & High risk customers

Item 20
20
How many 'Occupation codes' are available in CBS?
25
27
21
33
Item 21
21
Which of the following is a probable impact due to account opened with wrong name?
On- boarding of a person whose name appears in the RBI Defaulter's list leading the
bank to Regulatory punitive action.
On- boarding of a person who is already a customer of another bank leading the bank to
Regulatory Punitive action.
On- boarding of a person whose name appears in various sanctions lists circulated by
RBI leading the bank to Regulatory punitive action
All of the above

Item 22
22
Poor data entry implies____
data has been entered in the wrong field
data not entered correctly.
a single account, contact, etc. that occupies more than one record in the database.
misspellings, typo errors, transpositions, and variations in spelling, naming or
formatting.
Item 23
23
As per the laid procedure for implementation of Section 51A of the Unlawful Activities
(Prevention) Act, 1967, if an individual or entity has evidence to prove that it's funds are
inadvertently frozen, it shall move an application giving the requisite evidence, in writing
to____
The State Nodal Officer for UAPA.
Central Designated Nodal Officer for UAPA.
The concerned Bank/ other RE.
all of these simultaneously.

Item 24
24
The procedure laid down in the UAPA Order dated February 2, 2021 requires the Banks
to run a check on given parameters on a _____basis to verify whether individuals or
entities listed are holding any funds, financial assets or economic resources or related
services held in the form of bank accounts
fortnightly
daily
weekly
monthly
Item 25
25
It’s not enough to apply Customer Due Diligence (CDD) measures, once at the time of
onboarding, a reporting entity, should exercise due diligence _____________ in respect
of customers to monitor transactions to ensure that they are consistent with the
customer’s personal profile, business / risk profile and source of funds.
on daily basis
on monthly basis
on quarterly basis
on an ongoing basis
Item 26
26
The procedure laid down in the UAPA Order dated February 2, 2021 requires the Banks
to maintain the updated list of designated individuals & entities, approved by UNSC, in
which form?
Electronic form
Physical form
Either of these
Both of these
Item 27
27
Reporting Entities are NOT required to carry out ‘Money Laundering (ML) and Terrorist
Financing (TF) Risk Assessment’ exercise periodically in respect of_____
Transactions or delivery channels
Services and products
Auditors
Item 28
28
Not categorising a PEP’s account properly may lead to non-compliance of guidelines of
_________.
PMLA Act 2002
Banking Regulation Act-1949
Foreign Exchange Management Act-1999
Information Technology Act-2005

Item 29
29
Feeding of erroneous data regarding ‘Residential Status- RI/NRI’ may lead to
_________
missing out Enhanced Due Diligence in respect of accounts of NRI customers who are
residents of High risk countries.
errors in alert generation for transaction monitoring.

errors/ effect on the periodicity for the obtention of KYC documents.
errors in name screening by AMLOCK software.

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MODULE 2

A customer entering branch premises with face covered with mask.

When a customer is a legal person.

Registration certificate and Trust deed

Documents relating to beneficial owner, managers, officers or employees, as the case

Permanent Account Number or Form No. 60 of the unincorporated association or a

Resolution of the managing body of such association or body of individuals. Power of

An account becomes KYC Non-Compliant/ KYC discrepant accounts in certain

Accounts where KYC Updation is overdue.

Branches/ offices will undertake CDD while establishing business relationship.

There is no need of undertaking CDD measures while carrying out occasional

Bank will immediately close the account.

Bank will convert the account to Small Account.

Review of risk categorization of customers should be carried out only if there is a

Review of risk categorization of customers should be carried out at a periodicity of not

Review of risk categorization of customers should be carried out at a periodicity of not

Review of risk categorization of customers should be carried out at a periodicity of not

Registration certificate in the name of the firm.

All the above

Video based CIP will be treated as Non face-to-face CIP.

All the above statements are correct.

No account is opened in anonymous or fictitious/ benami name.

An account may be opened in anonymous or fictitious/ benami name but it must be

Customer identification means undertaking client due diligence measures while

All statements are correct.

Which of the following statements regarding Customer Identification Procedures (CIP) is

The first requirement of Customer Identification Procedures (CIP) to be satisfied is that

Customer identification means undertaking client due diligence measures while

All statements are correct.

Customer risk categorization (CRC) is carried out by AML-CFT Department at pre-

CRC is done, daily for the incremental accounts/customers.

CRC is done weekly for the incremental accounts/customers.

Though such information collected from the customer is to be treated as confidential

Though such information collected from the customer is to be treated as confidential

Though such information collected from the customer is to be treated as confidential

Aadhaar number/ card

Proof of possession of Aadhaar number

Accounts of persons having relationships with banned entities such as individual

Registration certificate and Trust deed

Memorandum and Articles of Association

Documents relating to beneficial owner, managers, officers or employees, as the case

Permanent Account Number or Form No.60 of the trust

Enhanced Due Diligence (EDD) is required to be exercised in respect of what type of

Politically exposed Persons (PEPs)

Relatives and associates of PEPs

All customers categorized under high risk

All of the Above

What is NOT true regarding KYC/AML/CFT guidelines issued by RBI?

It prevents banks/FIs from being used, intentionally or unintentionally, by criminal

The KYC policy should have four key elements.

While establishing account-based relationship with an individual.

While establishing account-based relationship with a beneficial owner/ authorized

While establishing account-based relationship with an authorized signatory or the power

All the statements are correct.

Which of the following statements regarding Customer Identification Procedures (CIP) is

Branches shall undertake Customer Identification while selling of third-party products as

Branches shall undertake Customer Identification while selling of third-party products as

All are correct

Any one of the signatories to the account.

All of the signatories to the account.

None of the Above.

Video based Customer Identification procedure