Multiple choice

Which of the following statements are correct regarding acceptance of deposits by banks?

(a) Banks can refuse to accept deposit from undesirable persons. (b) For opening an account, introductory reference is not mandatory. (c) For opening of an account, identification is essential. (d) Banks can accept deposit of money only.

  1. Only (a), (b) and (c)

  2. Only (b), (c) and (d)

  3. Only (a), (c) and (d)

  4. All of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Introduction is not necessary for opening of accounts under PML Act and Rules or Reserve Bank’s extant KYC instructions. Banks should not insist on introduction for opening bank accounts of customers. All of the above statements are correct.

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