Banking · Know Your Customer (KYC)
A foreign national arrives in India on a short-term employment visa for a project lasting 4 months in Mumbai. He approaches a bank branch to open a bank account to receive his local salary and pay for his expenses. He provides his original Passport and a valid Visa as proof of identity and a copy of the rental agreement for his local apartment. However, the rental agreement is not registered, and he does not have any other local address proof. According to the RBI Master Direction on KYC, how should the branch handle this operational request?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1The branch can open an account for a period of six months by accepting the Passport and Visa, and he can provide a self-declaration of his local address, provided the account is monitored closely.
- 2The branch can open the account by accepting the Passport and Visa as identity proof and the unregistered rental agreement as proof of address, but he must provide a permanent address proof from his home country.✓
- 3The branch can open a regular savings account and give him six months to provide a registered document, provided he submits a letter from his employer in India.
- 4The branch should refuse to open the account because a registered rental agreement is mandatory for foreign nationals to establish their local address in India.
Correct answer
The branch can open the account by accepting the Passport and Visa as identity proof and the unregistered rental agreement as proof of address, but he must provide a permanent address proof from his home country.
Download Single Question PDF
Save this question and verified answer as a clean study sheet with live clickable link.
👥
Share with Friends & Study Groups
Challenge your peer aspirants on WhatsApp or Telegram to solve this question!
Online Test Series
Start Free Mock Test →Preparing for Banking?
Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.
Chapter Practice
Practice Know Your Customer (KYC) MCQs →Want more practice questions on Know Your Customer (KYC)?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in Banking · Know Your Customer (KYC)