Banking · KYC and AML
Assertion (A): A banker is permitted to open a small account for an individual who does not have any Officially Valid Document (OVD), provided the account is subjected to specific limitations such as a maximum balance of fifty thousand rupees and total credits not exceeding one lakh rupees in a year. Reason (R): Small accounts are designed to promote financial inclusion for the marginalized sections of society, and as per the PMLA Rules, these accounts are valid only for a period of twelve months, extendable by another twelve months if the individual provides proof of having applied for an OVD. Select the correct option:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Both A and R are true and R is the correct explanation of A.✓
- 2A is false but R is true.
- 3A is true but R is false.
- 4Both A and R are true but R is not the correct explanation of A.
Correct answer
Both A and R are true and R is the correct explanation of A.
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