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Which regulation primarily aims at preventing identity theft in banking operations?POS guidelinesKYC normsAML guidelinesDigital Signature regulation

Question

Which regulation primarily aims at preventing identity theft in banking operations?

  • POS guidelines
  • KYC norms
  • AML guidelines
  • Digital Signature regulation
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Solution

The regulation that primarily aims at preventing identity theft in banking operations is KYC norms (Know Your Customer).

Explanation:

KYC norms are put in place to verify the identity of clients and understand their financial dealings. These requirements help financial institutions mitigate risks associated with identity theft and fraud. By collecting and verifying customer information—such as identification, address, and financial background—banks can ensure that they know who their clients are, which is fundamental in preventing any potential misuse of personal data.

In contrast, the other options provided, while important in their own contexts, do not specifically focus on identity theft prevention in the way that KYC norms do. POS guidelines pertain to point-of-sale systems, AML guidelines focus on anti-money laundering efforts, and Digital Signature regulations deal with the authenticity and integrity of digital communications.

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