Interview Questions.

Q1. Can I Purchase A Demand Draft/fee Order/visitors Cheque Against Cash?

Yes, Demand Draft/Payment Order/Travellers Cheques for under Rs.50,000/- can be purchased towards cash and such contraptions for Rs. 50000/- and above can be issued handiest through way of debiting the client's account or towards cheques.

Q2. What Is Kyc? Why Is It Required?

KYC me “Know Your Customer”. It is a manner with the aid of which banks acquire records approximately the identification and address of the customers. This method facilitates to make certain that banks’ services are not misused. The KYC procedure is to be finished by way of the banks even as opening money owed. Banks also are required to periodically replace their customers’ KYC information.

Q3. Whether Kyc Is Applicable For Credit/debit Cards?

Yes. KYC exercising is necessary for Credit/ Smart Cards and additionally in respect of upload-on/ supplementary playing cards. Since debit playing cards are issued simplest to account holders and bills are opened simplest after the KYC process is completed, there's no need for separate KYC for issuing debit card.

Q4. Can I Open A Bank Account With Only An Aadhaar Card?

Yes, Aadhaar card is prevalent as a proof of both identity and deal with.

Q5. What Are The Rules Regarding Periodic Updation Of Kyc?

Different periodicities have been prescribed for updation of KYC statistics relying on the risk notion of the bank. KYC is required to be achieved at the least as soon as in two years for excessive danger clients, as soon as in 8 years for medium danger clients and once in ten years for low risk clients. This exercising would contain all formalities for KYC commonly taken at the time of establishing the account.

While periodic updation of KYC has to be executed in admire of customer categorised as ‘low chance’ additionally, if there is no trade in fame with admire to the identity (trade in call, and so on.) and/or address of such customers the banks may also ask such customers to submit best a self-certification approximately ‘no-exchange in repute’ on the time of periodic updation. Banks won't ask such customers to post copies of ‘Officially Valid Documents’ for periodic updation.

In case of exchange of cope with of such ‘low danger’ customers, they could merely ahead a licensed reproduction of the report (proof of address) by using mail/publish, etc. Physical presence of such low chance consumer is not required at the time of periodic updation.

Customers who are minors must submit clean photo on becoming important.

Q6. If I Refuse To Provide Requested Documents For Kyc To My Bank For Opening An Account, What May Be The Result?

If you do no longer offer the required files for KYC, the financial institution will not be capable of open your account.

Q7. Do Banks Inform Customers About This Risk Categorisation?

No,bank does not inform clients about this risk categorisation.

Q8. Is It Compulsory To Furnish Aadhaar Card For Opening An Account?

No. You can provide Aadhaar card or any of the opposite five OVDs for beginning an account.

Q9. Do I Have To Furnish Kyc Documents For Each Account I Open In A Bank Even Though I Have Furnished The Documents Of Proof Of Identity And Address?

No, when you have opened a KYC compliant account with a bank, other than a ‘small account’, then for establishing every other account with the identical bank, furnishing of documents isn't necessary.

Q10. Are Banks Required To Categorise Their Customers Based On Risk Assessment?

Yes, banks are required to categorise their clients into ‘low’, ‘medium’ and ‘high’ hazard classes relying on their AML threat evaluation.

Q11. What If I Do Not Provide The Kyc Documents At The Time Of Periodic Updation?

If you do no longer provide your KYC documents at the time of periodic updation, financial institution has the choice to close your account. Before remaining the account, the bank can also, but, impose ‘partial freezing’ (i.E. To begin with permitting all credits and disallowing all debits even as giving an option to you to shut the account and take your money returned). Later, even credit additionally would now not be allowed. The ‘partial freezing’ but, would be exercised with the aid of the financial institution after giving you due be aware.

Q12. What Is E-kyc? How Does E-kyc Work?

E-KYC refers to digital KYC.

E-KYC is viable simplest for those who have Aadhaar numbers. While the use of e-KYC service, you need to authorise the Unique Identification Authority of India (UIDAI), with the aid of specific consent, to launch your identification/address through biometric authentication to the financial institution branches/enterprise correspondent (BC). The UIDAI then trfers your facts comprising your call, age, gender, and photograph electronically to the bank. Information thus furnished via e-KYC process is authorized to be treated as an ‘Officially Valid Document’ beneath PML Rules and is a legitimate process for KYC verification.

Q13. I Do Not Have A Bank Account. But I Need To Make A Remittance. Is Kyc Applicable To Me?

Yes. KYC exercising wishes to be done for all those who need to make domestic remittances of Rs. 50,000 and above and all foreign remittances.

Q14. If I Am Staying In Chennai But If My Proof Of Address Shows My Address Of New Delhi, Can I Still Open An Account In Chennai?

Yes. You can open a financial institution account in Chennai even if the cope with within the “Officially Valid Document” is that of New Delhi and you do now not have a evidence of address to your Chennai cope with. In such case, you can put up the formally valid report having your New Delhi deal with, together with a statement about your Chennai deal with for verbal exchange functions.

Q15. Is Introduction Necessary While Opening A Bank Account?

No, creation is not required.

Q16. Can I Trfer My Existing Bank Account From One Place To Another? Do I Need To Undergo Full Kyc Again?

It is possible to trfer an account from one department to some other branch of the same bank. There is not any want to undergo KYC exercising again for such trfer. However, if there may be a trade of address, then you will ought to publish a declaration about the present day cope with. If the cope with performing in the ‘Officially Valid Documents’ (OVDs) submitted for proof of address is now not your legitimate deal with (i.E. Neither your permanent address nor your present day cope with), you want to get an Officially Valid Document for Proof of Address containing the modern-day or the everlasting deal with and provide the equal inside six months. In case of starting an account in another bank, but, you will have to undergo KYC exercising afresh.

Q17. My Kyc Was Completed When I Opened The Account. Why Does My Bank Insist On Doing Kyc Again?

Banks are required to periodically update KYC records. This is part of their ongoing due diligence on financial institution bills. The periodicity of such updation varies from account to account depending on its hazard categorisation by using the bank. Periodic updation of information also allows prevent frauds in purchaser accounts.

Q18. For Which Banking Tractions Do I Need To Quote My Pan Number?

PAN variety wishes to be quoted for tractions which include account opening, tractions above Rs.50,000 (whether or not in coins or non-coins), etc. A complete list of tractions wherein PAN quantity desires to be quoted may be accessed from website of Income Tax Department.

Q19. What Are The Kyc Requirements For Opening A Bank Account?

To open a bank account, one wishes to publish a ‘evidence of identity and evidence of cope with’ collectively with a current picture.

Q20. How Is Partial Freezing Imposed?

Partial freezing is imposed within the following methods:

Banks need to give due be aware of three months to begin with to the clients before exercise the option of ‘partial freezing’.

After that a reminder for further duration of 3 months may be issued.

Thereafter, banks shall impose ‘partial freezing’ by way of permitting all credit and disallowing all debits with the freedom to close the debts.

If the debts are nonetheless KYC non-compliant after six months of imposing initial ‘partial freezing’ banks shall disallow all debits and credit from/to the bills, classifying them inoperative.

Meanwhile, the account holders can revive accounts by submitting the KYC documents.

Q21. If My Name Has Been Changed And I Do Not Have Any Ovd In The New Name, How Can I Open An Account?

A copy of the marriage certificate issued through the State Government or Gazette notification indicating exchange in call together with a certified reproduction of the ‘Officially Valid Documents’ inside the previous name of the character is to be furnished for opening of account in cases of persons who exchange their names on account of marriage or in any other case.

Q22. Do I Need To Submit Kyc Documents To The Bank While Purchasing Third Party Products (like Insurance Or Mutual Fund Products) From Banks?

Yes, all clients who do now not have money owed with the financial institution (referred to as walk-in customers) should produce evidence of identity and address while buying 1/3 birthday party merchandise from banks if the traction is for Rs.50,000 and above. KYC exercise will not be necessary for financial institution’s very own customers for purchasing 0.33 celebration products. However, instructions to make fee by debit to clients’ debts or towards cheques for remittance of funds/difficulty of travellers’ cheques, sale of gold/silver/platinum and the requirement of quoting PAN variety for tractions of Rs.50,000 and above will be relevant to purchase of 0.33 celebration products from bank with the aid of its customers as also to walk-in customers.