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KNOW YOUR CUSTOMER(KYC)

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KNOW YOUR CUSTOMER(KYC)

KYC is an acronym for “Know your Customer”, a term used for customer identification process. It involves making reasonable efforts to determine true identity and beneficial ownership of accounts, source of funds, the nature of customer’s business, reasonableness of operations in the account in relation to the customer’s business, etc which in turn helps the banks to manage their risks prudently. The objective of the KYC guidelines is to prevent banks being used, intentionally or unintentionally by criminal elements for money laundering.

KYC has two components – Identity and Address. While identity remains the same, the address may change and hence the banks are required to periodically update their records.

SOME FREQUENTLY ASKED QUESTIONS:
1. Is there any legal backing for verifying the identity of clients?
Yes. Reserve Bank of India has issued guidelines to banks under Section 35A of the Banking Regulation Act, 1949 and Rule 7 of Prevention of Money-Laundering (Maintenance of Records of the Nature and Value of Transactions, the Procedure and Manner of Maintaining and Time for Furnishing Information and Verification and Maintenance of Records of the Identity of the Clients of the Banking Companies, Financial Institutions and Intermediaries) Rules, 2005. Any contravention thereof or non-compliance shall attract penalties under Banking Regulation Act.

2. I want to keep a fixed deposit in a bank. Is KYC – applicable to me?
Yes. KYC is applicable to customers of the bank. For the purpose of KYC following are the ‘Customers of the bank.
• a person or entity that maintains an account and/or has a business relationship with the bank;
• one on whose behalf the account is maintained (i.e. the beneficial owner);
• beneficiaries of transactions conducted by professional intermediaries, such as Stock Brokers, Chartered Accountants, Solicitors etc. as permitted under the law, and
• any person or entity connected with a financial transaction which can pose significant reputational or other risks to the bank, say, a wire transfer or issue of a high value demand draft as a single transaction.

3. Is there any procedure specified for Customer Identification?
Customer identification means identifying the customer and verifying his/her identity by using reliable, independent source documents, data or information. Banks have been advised to lay down Customer Identification Procedure to be carried out at different stages i.e. while establishing a banking relationship; carrying out a financial transaction or when the bank has a doubt about the authenticity/veracity or the adequacy of the previously obtained customer identification data.

4. Once KYC requirements are complied with while opening the account, whether the bank can again ask for KYC compliance from me?
Yes. To ensure that the latest details about the customer are available, banks have been advised to periodically update the customer identification data based upon the risk category of the customers.
Banks create a customer profile based on details about the customer like social/financial status, nature of business activity, information about his clients’ business and their location, the purpose and reason for opening the account, the expected origin of the funds to be used within the relationship and details of occupation/employment, sources of wealth or income, expected monthly remittance, expected monthly withdrawals etc. When the transactions in the account are observed not consistent with the profile, bank may ask for any additional details / documents as required. This is just to confirm that the account is not being used for any Money Laundering/Terrorist/Criminal activities.

5. I had submitted my driving licence as a proof of identity and address but still the bank asked for telephone / electricity bill.
There are two aspects of Customer Identification. One is establishing identity and the other is establishing present residential address.
For establishing identity, the bank requires any authentic document carrying photo of the customer such as driving licence/ passport/ pan card/ voters’ card etc. Though these documents carry the residential address of the customer, it may not be the present address. Therefore, in order to establish the present address of the customer, in addition to passport/ driving licence / voters’ card / pan card, the bank may ask for utility bills such as Telephone / Electricity bill etc.

6. Whether KYC is applicable for Credit Cards/Debit Cards/Smart Cards?
Yes. Application of full KYC procedure is necessary before issuing Credit Cards/Debit Cards/Smart Cards and also in respect of add-on/ supplementary cards.

7. If I refuse to give information on KYC asked for by the bank, what action the bank can take against me?
Where the bank is unable to apply appropriate KYC measures due to non-furnishing of information and /or non-cooperation by the customer, the bank can consider closing the account or terminating the banking/business relationship after issuing due notice to the customer explaining the reasons for taking such a decision.

The Nobel Laureates from India

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Nobel Prize
Nobel Prize

Nobel Prize – an annual award for outstanding contributions to chemistry or physics or physiology and medicine or literature or economics or peace

Since 1901, the Nobel Prize has been awarded annually as per Alfred Nobel’s last will and testament.  It is an international award administered by the Nobel Foundation in Stockholm, Sweden. Indians have always shown their untapped potential and have achieved Nobel prize in every field. Even though they may not have facilities and luxuries at par with the likes of USA, Britain and other big social economies but the talent, hard work and skill here is unfathomed.

Nobel Prize winners from India are with due respect enlisted below, these are great people from India who showed the world the untapped potential India has,

RABINDRANATH TAGORE (1861 – 1941) – India’s Poet Laureate

  • Nobel Prize for Literature (1913)
  • Popularly known as Gurudev, India’s most famous writer and poet was awarded the Nobel Prize in recognition of his work Geetanjali, a collection of poems, in 1913. Tagore was also involved in teaching. In 1901 he founded the famous Santiniketan which later came to be known as Vishwabharati University.
  • He became Asia’s first Nobel laureate when he won the 1913 Nobel Prize in Literature.
  • Tagore wrote many love lyrics. Geetanjali and Sadhana are among his important works.

The poet, dramatist and novelist is also the author of India’s National Anthem.

CHANDRASHEKAR VENKATA RAMAN (1888-1970)

 recognized for his work on the molecular scattering of light

  • Nobel Prize for Physics (1930)
  • Born at Thiruvanaikkaval in Tamil Nadu, Raman studied at Presidency College, Madras. Later, he served as Professor of Physics at Calcutta University. C.V. Raman won the Nobel Prize for an important research in the field of optics (light). Raman had found that diffused light contained rays of other wavelengths-what is now popularly known as Raman Effect.
  • In 1954 he was awarded the Bharat Ratna. He was also awarded the Lenin Peace Prize in 1957.
  • His theory discovered in 1928 explains the change in the frequency of light passing through a transparent medium.

India celebrates National Science Day on 28 February of every year to commemorate the discovery of the Raman Effect in 1928.

HARGOBIND KHORANA (1922)

  • The Nobel Prize for Medicine (1968)
  • Hargobind Khorana was awarded the Nobel Prize for Medicine in 1968. Of Indian origin, Dr Khorana was born in Raipur, Punjab (now in Pakistan). He took his doctoral degree in Chemistry from Liverpool University and joined the University of Wisconsin as a Faculty Member in 1960.
  • His major breakthrough in the field of Medicine—interpreting the genetic code and analyzing its function in protein synthesis—fetched him the Nobel Prize
  • In 1970 Khorana became the Alfred Sloan Professor of Biology and Chemistry at the Massachusetts Institute of Technology where he worked until retiring in 2007.

He is a member of the Board of Scientific Governors at The Scripps Research Institute, and currently holds Professor Emeritus status at MIT.

MOTHER TERESA  (1910-1997)

  • The Nobel Peace Prize (1979)
  • The Nobel Peace Prize was awarded to Mother Teresa in 1979 – A  Roman Catholic nun with Indian citizenship who founded the Missionaries of charity in Kolkata (Calcutta), India in 1950.
  • Mother Teresa was born Agnes Gonxha Bojaxhiu at Skopje, now in Yugoslavia. She wanted to become a nun and joined the Irish order of the Sisters of Loretto (at Dublin) in 1928. It is as a nun that Agnes came Calcutta in 1929. Here she was extremely touched by the misery of the poor and the sick. She decided to dedicate her life to serving them. She then founded a group of similar minded people called the Missionaries of Charity and set up Nirmal Hriday  (meaning Pure Heart) a center where she took care of the dying, the lepers and other people who had been left alone on the streets of Calcutta to die. Today her group has centers all over the world

SUBRAMANIAN CHANDRASEKHAR (1910-1995)

  • The Nobel Prize for Physics (1983)
  • He was awarded the Nobel Prize in Physics in 1983 for his studies on the physical processes important to the structure and evolution of stars.
  • Dr S. Chandrashekar is an Indian-born astrophysicist (a branch of astronomy or the study of space). After studying at the Presidency College in Madras, Dr. Chandrasekhar went to the United States for work and settled there. He has written many books on his field Astrophysics and Stellar Dynamics. He developed a theory on white dwarf stars forecasts the limit of mass that dwarf stars can have. This limit is known as the Chandrashekar Limit. His theory also explains the final stages of the evolution of stars.

Dr. Chandrashekar is the nephew of another Nobel Prize winner Sir C.V. Raman.

AMARTYA SEN (1933)

  • Nobel Prize for Economics (1998)
  • Prof. Amartya Sen is the recipient of the Nobel Prize for Economics for the year 1998
  • He is one of the most respected economics thinkers in the world. He is also an excellent teacher. He won the Nobel for his work in the area of economic theory. Some of his most important work is in the areas of poverty, democracy, development and social welfare.
  • The ‘impossibility theorem’ suggested earlier by Kenneth Arrow states that it was not possible to aggregate individual choices into a satisfactory choice for society as a whole. Prof. Sen showed mathematically that societies could find ways to alleviate such a poor outcome.

Prof. Amartya Sen is the first Asian to win the Economics Nobel.

Other Nobel laureates having linked to India

RUDYARD KIPLING (1865-1936)

  • Nobel prize in Literature (1907)
  • He was a British author and poet. Born in Bombay, British India.
  • In 1907, he was awarded the Nobel Prize in Literature, making him the first English language writer to receive the prize, and to date he remains its youngest recipient.
  • British writer, Rudyard Kipling wrote novels, poems and short stories — mostly set in India and Burma (now known as Myanmar). He was the Nobel Prize Laureate in Literature “in consideration of the power of observation, originality of imagination, virility of ideas and remarkable talent for narration, which characterize the creations of this world-famous author.”

He is best known for his works of fiction The Jungle Book (1894) (a collection of stories).

Constituency of Cabinet ministers

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Constituency of Cabinet ministers
           

1 Narendra Modi- Vadodara- (Gujarat) , (Banaras UP)

2 Rajnath Singh- Lucknow -(Uttar Pradesh)

3 Arun Jaitley- RajyaSabha- (Gujarat)

4 Sushma Swaraj -Vidisha- (Madhya Pradesh)

5 Nitin Gadkari -Nagpur- (Maharashtra)

6 Venkaiah Naidu- RajyaSabha- (Karnataka)

7 D. V. Sadananda Gowda -Bangalore North- (Karnataka)

8 Ram Vilas Paswan- Hajipur- (Bihar)

10 Kalraj Mishra- Deoria- (Uttar Pradesh)

11 Maneka Gandh -Pilibhit- (Uttar Pradesh)

12 Ananth Kuma -Bangalore South- (Karnataka )

13 Ravi Shankar Prasad -RajyaSabha- (Bihar

14 Ashok Gadpati Raju -Vizianagaram -(Andhra Pradesh)

15 Ananth Geete -Raigad- (Maharashtra)

16 Harsimrat Kaur -Bathinda- (Punjab)

17 Narendra Singh Tomar -Gwalior- (Madhya Pradesh)

18 Jual Oram -Sundargarh- (Odisha)

19 Thawar Chand Gehlot -Rajyasabha- (Madhya Pradesh)

20 Smriti Irani -RajyaSabha- (Gujarat)

21 Uma Bharti -Jhansi- (Uttar Pradesh)

22 Najma Heptullah- RajyaSabha- (Madhya Pradesh)

23 Radha Mohan Singh -Purvi Champaran- (Bihar)

24 Harsh Vardhan -Chandani Chowk- (Delhi)

Important Battles in the Indian History

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Important Battles in the Indian History
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1. 1st battle of Tarain–1191– Prithviraj Chauhan defeated Mohammed Ghori

2. 2nd battle of Tarain–1192–Mohammad Ghori defeated Prithviraj Chauhan

3. 1st battle of Panipat–1526–Babar defeated Ibrahim Lodi

4. Battle of Khanwa–1527– Babur defeated Rana Sunga further strengthening his foothold in India.

5. Battle of Ghaghra–1529–Babur defeated Mahmud Lodi and Sultan Nusrat Shah thus establishing Mughal rule in India.

6. 2nd battle of Panipat–1556–Akbar defeated Hemu

7. 3rd battle of Panipat–1761Ahmed Shah Abdali defeated the Marathas

8. Battle of Talikota–1565–Deccan Sultanates defeated the glorious Vijayanagar empire

9. Battle of Haldighati–1576–Undecisive battle between Raja Man Singh of Mughal Army and Rana Pratap of Mewar.

10. Battle of Plassey–1757–British defeated Siraj-ud-duala with the help of Mir Zafar. This battle laid the foundation of British empire in India.

11. Battle of Wandiwash–1760–British decisively defeated the French in India. The Seven years war (1756 – 1763) between the British and the French in Europe ran parallel to this war. 3 Carnatic wars were fought between the British and the French and this battle was a part of the 3rd Carnatic War.

12. Battle of Buxar–1764–British defeated the combined forces of Mir Qasim, Shuja-ud-duala (Nawab of Oudh) and Shah Alam II(Mughal emperor). This completed the work began by the battle of Plassey.

13. Battle of Samugarh–1658–Aurangzeb defeated Dara Shikoh.

14. Battle of Karnal–1739–Nadir Shah defeated Mughal Emperor Muhammad Shah.

GA QUESTIONS

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General Awareness Questions

[1] Sania Mirza and her partner has won mixed doubles Trophy of US Open, Her partner was
A: Ishraf Tayip
B: Zaho Yuneli
C: James Rodriguez
D: Bruno Soares
Ans:(D) Bruno Soares

[2] Which Indian Player has announced its retirement from International competitions?
A: Sandeep Pujara
B: Pankaj Advani
C: Vijendra Singh
D: Abhinav Bindra
Ans:(B) Pankaj Advani
[3] Which Union Ministry has launched Know Your Rights Portal?
A: Ministry of Defence
B: Ministry of Railways
C: Civil Aviation Ministry
D: Ministry of External Affairs
Ans:(C) Civil Aviation Ministry

[4] Bhartendu Harishchandra Award is given in the field of?
A: Classical Dance
B: Drama
C: Cinema
D: Creative writing in hindi on Mass Communication
Ans:(D) Creative writing in hindi on Mass Communication

[5] Which committee has recently submitted its report on the status of deemed universities in India?
A: CNR Rao Committee
B: Thorat Committee
C: H Devaraj Committee
D: Tandon Committee
Ans:(C) H Devaraj Committee

[6] What is the name of the book written by Neel Mukherjee, the only person of Indian origin, to be nominated for Man Booker Prize 2014?
A: The Lives of Others
B: How to be Both
C: To Rise Again at a Decent Hour
D: None
Ans:(A) The Lives of Others

[7] Wales Declaration is related to which global summit?
A: G-7
B: G-20
C: NATO
D: BRICS
Ans:(C) NATO

[8] Which state has launched need based development plan for villagers?
A: Rajasthan
B: Bihar
C: Gujarat
D: Delhi
Ans:(D) Delhi

[9] Who amongst the following was awarded the MIDORI Prize for Biodiversity, 2014?
A: Dr. Krishnaswamy Kasturirangan
B: Madhav Gadgil
C: R.K. Pachauri
D: R. Kamal Bawa
Ans:(D) R. Kamal Bawa

[10] Frank Walter Steinmeier is on India’s visit. Of which country is he the foreign minister ?
A: Germany
B: Russia
C: France
D: Italy
Ans:(A) Germany