Under Section 11(3) of the Banning of Unregulated Deposit Schemes Act, 2019, the duty to inform arises…
Section 11(3) obliges the principal officer to inform the Competent Authority where he has reason to believe that a client of the bank "is a deposit taker" acting in…
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Under Section 11(3) of the Banning of Unregulated Deposit Schemes Act, 2019, the duty to inform arises when the principal officer has reason to believe that:
Answer and explanation
Correct answer B
Section 11(3) obliges the principal officer to inform the Competent Authority where he has reason to believe that a client of the bank "is a deposit taker" acting in contravention of the Act. Unusual cash deposits are reported under the money-laundering law, and loan defaults or tax evasion do not trigger this duty.