Multiple choice

What is the amount that can be issued by banks in cash as bank draft under KYC directives of RBI?

  1. Rs. 50000 or less

  2. Rs. 50000 or more

  3. Less than Rs. 50000

  4. More than Rs. 50000

  5. More than Rs. 1 lakh
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Banks should ensure that any remittance of funds by way of demand draft, mail/telegraphic transfer or any other mode and issue of travellers’ cheques for value of Rs. 50000 and above is effected by debit to the customer’s account or against cheques and not against cash payment. Thus, cash payments according to KYC should be for the amount less than Rs. 50000. 

Keep practicing — related questions